Energy Transfer LP [NYSE:ET] shares are showing an active tape with a current price of $5.94 on Thursday.
Energy Transfer LP is in the Energy sector under the Oil & Gas Midstream industry. This week, we are watching the stock hit price per sales of 0.35 with an earning per share of 0.51.
For the year, the stock is trading -53.55% and the five-day change stands at -5.40%. As a point of reference, the S&P 500 is trading 0.77% YTD.
The Bears are coming
Holding a Market Cap of $15.99 billion, Energy Transfer LP has seen a trading range over the last year of $3.75-$14.07.
For the last five days, ET is down from its last closing price. The average shares trading hands each day is 23.35M, with average 10-day volume coming in at 16.57 million.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for ET. When we apply the Elder Force Index to Energy Transfer LP, we are seeing an Elder Force Indicator number of -100206.24.
Recent Performance
The recent performance of the stock is another area that can tell traders how to proceed. ET is presenting an interesting case. This can be seen in the Forward P/E ratio, which currently stands at 5.64. Moreover, the company’s enterprise value has gone from $70.20B to $64.12B quarter-over-quarter. Obviously, the company is heading in the wrong direction, but there are still opportunities for growth in the sector.
In the last quarter, ET made a profit of 3.22 billion. Energy Transfer LP also saw quarter revenue growth year over year of 0.24%. In addition, the company has operating cash flow of $7.24 billion.
Technical Analysis
Looking at popular technical indicators, the company’s 5-day moving average is 6.05 compared to the 50-day moving average of 6.50. So, traders might want to tread carefully if they are going to bid.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. ET currently holds a 9-day RSI of 23.83%, while 100-day RSI stands at 43.21%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. ET’s 9-day MACD is -0.18 and the company’s 100-day MACD stands at -1.19.
Inside Moves
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 13.81% by insiders and 59.67% by institutions. Regarding institutional holdings, Blackstone Group Inc. owns 5.99%, while the second top holder, Tortoise Capital Advisors, LLC, currently owns 2.56%.
Over the last six months, insiders have bought 120,000 with the most recent transaction from Perry James Richard, Director, with a purchase at price 4.89 per share.
Conclusion
Overall, the recommended rating for ET is Strong Buy. Currently, the company has 14 analysts watching the stock, and the average quarterly earnings estimate is 0.24. Quarterly revenue estimates are averaging 10.57B with the high estimate reaching 13.82B and the low at 7.04B.
