Energy Transfer's Insider Buying: A Strategic Indicator of Undervaluation and Future Growth

In the third quarter of 2025, Energy Transfer LP (ET) has drawn renewed investor attention through a surge in insider buying activity. Corporate leaders and directors have collectively invested over $78.1 million in the company's stock over the past 24 months, with recent transactions including Kelcy L. Warren's $11.245 million purchase of 650,000 shares and Gregory G. Mcilwain's $313,600 acquisition of 20,000 shares. These moves, while not always publicized, offer a window into the strategic calculus of executives who are intimately familiar with the company's operations and financial health.

Executive Confidence as a Strategic Signal

Insider buying is often interpreted as a vote of confidence in a company's future. At Energy Transfer, the pattern of purchases suggests executives believe the stock is undervalued. For instance, Kelcy L. Warren's recent $11.245 million investment—executed at an average price of $17.30 per share—implies a belief that the company's intrinsic value exceeds its current market price. This is further reinforced by the fact that insiders now own 3.28% of the company, a stake that aligns their interests with long-term shareholders.

The rationale for this confidence is rooted in Energy Transfer's financial trajectory. The company has maintained a consistent dividend yield of 7.42%, recently increased to $0.33 per share, while navigating a challenging macroeconomic environment. A reveals a valuation that appears attractive relative to historical and sector benchmarks. Additionally, the company's debt-to-equity ratio of 1.41, while elevated, is being managed through disciplined capital allocation and cost optimization.

Contextualizing the Data

The timing of insider purchases also warrants scrutiny. Gregory G. Mcilwain's $313,600 transaction on August 23, 2024, occurred at $15.68 per share—a price point that now appears undervalued given the stock's subsequent performance. This suggests executives are opportunistically buying during dips, a strategy that often signals a belief in near-term recovery. Over the past 12 months, insiders have netted $313,600 in purchases against $25,300 in sales, underscoring a net inflow of capital into the company.

A reveals a consistent pattern of accumulation, with no major selling events. This contrasts sharply with the broader market, where insider selling has been more prevalent in 2025. Such divergence often indicates that executives see value in their own stock that external investors may be overlooking.

Risks and Considerations

While insider buying is a compelling indicator, it is not infallible. Energy Transfer's high debt load remains a risk, particularly in a rising interest rate environment. Additionally, the company's exposure to volatile energy markets means its performance is inherently cyclical. Investors should also note that Virginia Foxx, a U.S. Congress member, has engaged in Energy Transfer trading, though her activity is not directly tied to corporate strategy.

Investment Implications

For investors, Energy Transfer's insider buying activity presents a strategic case for undervaluation. Executives are not only retaining their own shares but actively increasing their stakes, which historically correlates with outperformance. A shows periods of consolidation followed by sharp rebounds, often coinciding with major insider purchases.

Given the company's strong dividend growth, improving valuation metrics, and insider confidence, Energy Transfer could be a compelling addition to a diversified energy portfolio. However, investors should monitor debt management and macroeconomic trends, particularly in oil and gas prices, to gauge the sustainability of this optimism.

In conclusion, Energy Transfer's insider buying activity is more than a series of transactions—it is a strategic signal of undervaluation and long-term potential. As executives continue to bet on their own company, the question for investors becomes whether they are willing to follow suit.