Energy Transfer Stock Rises on Job Cuts

ET is cutting around 6% of its workforce

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.

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), CboeOptions 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.