Tema Etfs LLC Invests $2.11 Million in Energy Transfer LP

Tema Etfs LLC has acquired a new stake in Energy Transfer LP, purchasing 116,114 shares valued at approximately $2.11 million during the second quarter of 2023. This investment reflects a growing interest among institutional investors in the pipeline company, which operates extensive natural gas transportation and storage services across the United States.

In addition to Tema Etfs, several other hedge funds have recently adjusted their holdings in Energy Transfer. For instance, Ryan Investment Management Inc. entered the market with a new stake valued at around $31,000. CNB Bank notably increased its position by 111.1%, now holding 1,900 shares worth $34,000 after acquiring an additional 1,000 shares. Stone House Investment Management LLC and HHM Wealth Advisors LLC also made notable investments during the same period, with HHM increasing its holdings by 54.4%, resulting in ownership of 2,270 shares valued at $41,000.

As of now, institutional investors and hedge funds own 38.22% of Energy Transfer’s stock, indicating a robust institutional interest in the company.

Insider Trading Activity

Energy Transfer’s Director, Kelcy L. Warren, recently made headlines by purchasing 1,000,000 shares of the company on November 19, 2023, at an average cost of $16.95 per share. This transaction totaled $16.95 million, increasing Warren’s total ownership to 104,577,803 shares, valued at approximately $1.77 billion. This acquisition signifies a 0.97% increase in his ownership stake. The details of the transaction were disclosed in a filing with the Securities and Exchange Commission.

Company insiders currently hold 3.28% of Energy Transfer’s shares, further solidifying their investment in the firm.

Financial Performance and Analyst Ratings

Energy Transfer recently reported its earnings on November 5, 2023, revealing an earnings per share (EPS) of $0.28, which fell short of the consensus estimate of $0.34 by $0.06. The company generated $19.95 billion in revenue, missing analyst expectations of $21.84 billion. Despite this, Energy Transfer managed a net margin of 5.66% and a return on equity of 10.71%.

The company’s revenue for the quarter marked a 3.9% decline compared to the same period last year, where it recorded an EPS of $0.32. Analysts project that Energy Transfer will achieve an EPS of 1.46 for the current fiscal year.

In addition, the company announced an increase in its quarterly dividend, which was paid on November 19, 2023. Stockholders of record as of November 7 received a dividend of $0.3325 per share, slightly up from the previous $0.33 per share. This translates to an annualized dividend of $1.33 and a yield of 7.9%. The current dividend payout ratio stands at 106.40%, indicating a commitment to returning value to shareholders.

Several research firms have recently evaluated Energy Transfer’s stock. Morgan Stanley reduced its price target from $21.00 to $19.00, maintaining an “overweight” rating. In contrast, UBS Group reaffirmed a “buy” rating with a target price of $22.00, while Barclays reiterated an “overweight” rating with a target of $25.00. Scotiabank also adjusted its price target down to $21.00 from $23.00 but maintained a “sector outperform” rating. Overall, thirteen analysts rate the stock as a Buy, with an average target price of $21.62 according to MarketBeat.

Energy Transfer LP continues to play a significant role in the energy sector, managing extensive natural gas pipeline operations and serving various clients, including electric utilities and industrial end-users. The company remains a focal point for both investors and analysts who continue to monitor its performance and strategic moves in a dynamic market.