Why Are Energy Transfer Equity LP (ETE) Shares Surging This Morning?

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Every now and then a stock like Energy Transfer Equity LP (NYSE:ETE) will buck the overall trend of the market as well as its sector to surprise investors. That’s just what seems to be happening today as investors watch the stock surge more than 10% in a matter of just an hour or so.

Energy Transfer Equity LP (NYSE:ETE) shares began the day well in the red, opening at an intraday low of $4.81. By approximately 10:05 a.m. ET the stock had jumped close to 25% from those lows to trade at $5.88 a share. Since then the price has stabalized somewhat, but remains up over 10% on the day. While oil prices continue their decline and the Dow is down over 1.8%, investors seem quite perplexed as to what the heck is going on here.

It appears as if the stock may have been heavily shorted and drastically oversold. Shares are now trading at a future PE ratio of around 4, and the stock continues to pay a substantial dividend. Investors likely are looking for value plays, and as long as oil prices don’t plunge to below $20 a barrel, this may be the perfect bet.

The stock is up 10.10% or $0.53 following the news, hitting $5.78 per share. About 8.45 million shares traded hands. ETE has declined 83.33% since July 8, 2015 and is downtrending. It has underperformed the S&P500 by 74.46%.

The institutional sentiment decreased to 0.7 in Q2 2015. It’s down 0.32, from 1.02 in 2015Q2. The ratio dived, as 78 funds sold all their Energy Transfer Equity LP shares they owned while 123 reduced their positions. 28 funds bought stakes while 112 increased their total positions. Institutions now own 1.02 billion shares which is 305.12% more than the previous share count of 251.55 million in 2015Q2.

Walnut Private Equity Partners Llc holds 21.12% of its total portfolio in Energy Transfer Equity LP, equating to 1.20 million shares. Yorkville Capital Management Llc owns 863,918 shares representing 17.95% of their total US portfolio. Moreover, C V Starr & Co Inc has 12.12% of their total portfolio invested in the company, equating to 110,230 shares. The Kansas-based Whetstone Capital Advisors Llc has a total of 10.07% of their portfolio invested in the stock. Heronetta Management L.P., a New York-based fund reported 638,780 shares owned.

Energy Transfer Equity, L.P. is a limited partnership company. The company has a market cap of $6.94 billion. The Company, directly and indirectly, owns equity interests in Energy Transfer Partners, L.P. (ETP) and Regency Energy Partners LP (Regency), both of which are master limited partnerships engaged in diversified energy-related services. It has 5.95 P/E ratio. The Company’s divisions include Investment in ETP, including the consolidated activities of ETP and Regency; Investment in Lake Charles LNG, including the activities of Lake Charles LNG Company, LLC (Lake Charles LNG), and Corporate and Other, including the activities of ETE.