Kelcy Warren, Executive Chairman at Energy Transfer LP (ET), recently picked up 2,428,727 shares. The buy increased his holdings by 0.9 percent, and came to a total price of $29.42 million.
The Chairman has been a regular and extensive buyer of shares over the past few years, as have other C-suite executives, including the company CFO back in August. Over the past three years, insiders have almost exclusively been buyers.
Overall, insiders at the company own 19.8 percent of shares.
The oil and gas pipeline company is up 26 percent in the past year, on the back of a strong energy sector. With revenue up 72 percent in the past year, and earnings up 112 percent as well, the return in share price has lagged the company’s operational performance.
Action to take: Shares trade for less than 7 times forward earnings, and still look inexpensive here. Plus, as an LP, the stock offers a high dividend yield of 7.9 percent. Investors may want to accumulate shares, using advantage of any down days for the stock.
For traders, the company’s rally is likely to continue. The January 2023 $14 calls, last going or about $0.31, can potentially deliver high-double-digit returns on a continued rise in share price in the coming months. Given the low cost of the option, traders should look for a quick profit, and to buy an initial stake and add on any down days in the coming weeks.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.