Eversource Energy (ES) Cut to Hold at Zacks Investment Research
Zacks Investment Research lowered shares of Eversource Energy (NYSE:ES) from a buy rating to a hold rating in a research note published on Tuesday.
According to Zacks, “Shares of Eversource Energy returned higher than the industry in last six months. Eversource Energy‘s systematic investments in renewable energy generation, primarily in transmission and distribution systems will help it to provide reliable services to its customers. Margins of the company will improve if the company continues to reduce operating costs. Moreover, its regulated investment plans will help it to boost earnings per share by 5–7% over the 2017–2020 time frame from the 2016 level of $2.96. However, the company's decision to withdraw its Access Northeast Pipeline plan due to regulatory uncertainty, will have an adverse impact on its growth prospects. Moreover, it faces challenges due to severe weather conditions.”
A number of other research firms have also recently commented on ES. Morgan Stanley upgraded Eversource Energy from an equal weight rating to an overweight rating and set a $72.00 price objective for the company in a research report on Wednesday, December 13th. Bank of America initiated coverage on Eversource Energy in a research report on Tuesday, October 24th. They set an underperform rating and a $62.00 price objective for the company. Credit Suisse Group upped their price objective on Eversource Energy from $60.00 to $63.00 and gave the company a neutral rating in a research report on Monday, October 2nd. Finally, Williams Capital upped their price target on Eversource Energy from $64.00 to $66.00 and gave the stock a buy rating in a research report on Monday, October 23rd. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating and three have assigned a buy rating to the company. The company presently has a consensus rating of Hold and a consensus price target of $64.95.
Eversource Energy (NYSE:ES) last posted its quarterly earnings data on Wednesday, November 1st. The utilities provider reported $0.82 EPS for the quarter, missing analysts’ consensus estimates of $0.84 by ($0.02). The firm had revenue of $1.99 billion for the quarter, compared to analysts’ expectations of $2.06 billion. Eversource Energy had a net margin of 12.84% and a return on equity of 9.03%. The firm’s revenue was down 2.5% compared to the same quarter last year. During the same quarter last year, the company posted $0.83 EPS. equities research analysts anticipate that Eversource Energy will post 3.14 EPS for the current fiscal year.
The business also recently declared a quarterly dividend, which was paid on Friday, December 29th. Shareholders of record on Monday, December 18th were given a $0.475 dividend. This represents a $1.90 dividend on an annualized basis and a yield of 3.10%. The ex-dividend date of this dividend was Friday, December 15th. Eversource Energy’s payout ratio is 61.69%.
In other Eversource Energy news, COO Werner J. Schweiger sold 10,098 shares of the company’s stock in a transaction dated Thursday, November 9th. The stock was sold at an average price of $64.68, for a total value of $653,138.64. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Corporate insiders own 0.53% of the company’s stock.
Several large investors have recently added to or reduced their stakes in ES. Schroder Investment Management Group grew its position in shares of Eversource Energy by 6.3% during the second quarter. Schroder Investment Management Group now owns 9,155 shares of the utilities provider’s stock worth $556,000 after purchasing an additional 542 shares in the last quarter. Eaton Vance Management grew its position in shares of Eversource Energy by 46.8% during the second quarter. Eaton Vance Management now owns 106,235 shares of the utilities provider’s stock worth $6,450,000 after purchasing an additional 33,845 shares in the last quarter. Aberdeen Asset Management PLC UK grew its position in shares of Eversource Energy by 22.2% during the second quarter. Aberdeen Asset Management PLC UK now owns 103,515 shares of the utilities provider’s stock worth $6,284,000 after purchasing an additional 18,791 shares in the last quarter. Northwestern Mutual Wealth Management Co. grew its position in shares of Eversource Energy by 63.1% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 3,270 shares of the utilities provider’s stock worth $199,000 after purchasing an additional 1,265 shares in the last quarter. Finally, Raymond James Trust N.A. purchased a new stake in shares of Eversource Energy during the second quarter worth about $201,000. Hedge funds and other institutional investors own 72.14% of the company’s stock.
Eversource Energy Company Profile
Eversource Energy is a utility holding company engaged in the energy delivery business. The Company operates through three segments: electric distribution, electric transmission and natural gas distribution. The Company’s electric distribution segment consists of the distribution businesses, which are engaged in the distribution of electricity to retail customers in Connecticut, Massachusetts, and New Hampshire and the regulated electric generation businesses.
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