Kelcy Warren, an executive at
Energy Transfer LP (ET), recently bought 1,660,602 shares. The buy increased his stake by 1 percent, and came to total cost just over $21.67 million. The buy came on the heels of another purchase from the same insider, for 1,339,398 shares.
Company executives and directors have been buyers over the past year, with a number of buys ranging from 5,000 shares to over 2,428,000 shares. There have been no insider sales in the past two years.
Overall, ET insiders own 19.8 percent of the company.
Those insiders have enjoyed a 22 percent rally in the past year for the oil and gas midstream company. Earnings are up 25 percent, and revenues are up about 10 percent. While the profit margin is a bit low right now, shares still trade inexpensively at about 9 times forward earnings.
Action to take: As a limited partnership (LP) most of the company’s earnings pass through as income to shareholders. Currently, shares yield 9.6 percent, with room for more hikes in the payout over time.
For traders, shares have come down in recent sessions but are likely to continue their long-term uptrend. The July $14 calls, last going for about $0.25, offer mid-to-high double-digit gains in the months ahead, especially on any short-term jump higher in shares.
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.