Energy Transfer Stock Rises on Job Cuts

The company is also cutting spending for the year

Deputy Editor
Jun 1, 2020 at 2:58 PM
facebook twitter linkedin

The shares of Energy Transfer LP (NYSE:ET) are up 1.2% at $8.26, after announcing that it's cutting around 6% of its workforce next week to combat the impact of coronavirus. With the energy sector hit particularly hard by the pandemic, especially in regard to oil and gas, Energy Transfer executives said in early May that it would cut operational and capital expenses by as much as $650 million this year, with the potential to subtract another $400 million in project spending. It's also worth noting that the company's dividend of over 14% has acted as support through the broad-market sell-off. 

Steadily rising on the charts since its mid-March bear gap, ET seems to have found support at the descending 80-day moving average. And despite finding some traction over the past month, the equity is still down 35.5% year-to-date. 

ET Chart June 1

Analysts are bullish today, with nine out of 13 in coverage sporting a "strong buy" and the remaining four at a lukewarm "hold." Meanwhile, the 12-month consensus price target of $11.16 is a 35.1% premium to current levels. 

This sentiment has carried over into the options pits as well, as ET sports a 50-day call/put ratio of 9.07 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits higher than 94% of all readings from the past year, meaning calls are being picked up at a faster-than-usual clip.


Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners