On May 30, 2023, Bradford Whitehurst, Executive Vice President of Energy Transfer LP (ET, Financial), purchased 10,000 shares of the company's stock. This move is part of a larger trend of insider buying at Energy Transfer LP, as over the past year, Whitehurst has purchased a total of 33,500 shares and sold none. This article will provide an overview of Energy Transfer LP's business, analyze the recent insider buying activity, and discuss the relationship between insider transactions and the stock price.
Who is Bradford Whitehurst?
Bradford Whitehurst is the Executive Vice President of Energy Transfer LP, a position he has held since 2012. He has been with the company for over 20 years, having joined in 1996. Whitehurst has extensive experience in the energy industry, particularly in the areas of business development, operations, and engineering. His role at Energy Transfer LP involves overseeing the company's commercial activities, including the negotiation of contracts and the development of new business opportunities.
Energy Transfer LP's Business Description
Energy Transfer LP is a leading energy infrastructure company based in the United States. The company operates one of the largest and most diversified portfolios of energy assets in the country, with a focus on the transportation, storage, and processing of natural gas, crude oil, and refined products. Energy Transfer LP's operations include approximately 90,000 miles of pipelines, as well as terminals, storage facilities, and processing plants. The company's primary business segments are intrastate transportation and storage, interstate transportation and storage, midstream, NGL and refined products transportation and services, and crude oil transportation and services.
Analysis of Insider Buying and Stock Price Relationship
The recent insider buying activity at Energy Transfer LP is a positive signal for investors, as it indicates that the company's executives have confidence in the future prospects of the business. Over the past year, there have been 20 insider buys in total, with no insider sells. This trend suggests that insiders believe the stock is undervalued and represents a good investment opportunity.
The stock price of Energy Transfer LP has shown a positive correlation with the insider buying activity. On the day of Bradford Whitehurst's recent purchase, shares of the company were trading at $12.43 apiece, giving the stock a market cap of $39,563.985 million. The price-earnings ratio is 9.40, which is higher than the industry median of 7.5 but lower than the company's historical median price-earnings ratio. This indicates that the stock is fairly valued based on its historical multiples.
The GuruFocus Value for Energy Transfer LP is $12.49, which is slightly higher than the current stock price of $12.43. This gives the stock a price-to-GF-Value ratio of 1, meaning it is fairly valued based on the GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus that takes into account historical multiples, a GuruFocus adjustment factor based on the company's past returns and growth, and future estimates of business performance from Morningstar analysts.
Conclusion
The recent insider buying activity at Energy Transfer LP, particularly the purchase of 10,000 shares by EVP Bradford Whitehurst, is a positive sign for investors. The company's stock price has shown a positive correlation with the insider buying activity, and the stock is currently fairly valued based on its historical multiples and GF Value. Investors should keep a close eye on Energy Transfer LP and consider the stock as a potential investment opportunity, given the confidence shown by the company's executives in the future prospects of the business.
