Zacks Investment Research cut shares of NextEra Energy Inc. (NYSE:NEE) from a buy rating to a hold rating in a research note issued to investors on Wednesday.
According to Zacks, “NextEra Energy's investment in renewable generation should boost its performance over the long haul. NextEra Energy also invests frequently in its natural gas operations. The company’s Mountain Valley Pipeline joint venture with EQT Corporation is currently in the approval process with the Federal Energy Regulatory Commission (FERC) and commercial operations are expected to begin by the end of 2018. Favorable economic conditions in its service territories will drive demand for utility services. Strategic acquisition and asset divestment bode well for NextEra Energy. On the flip side, NextEra Energy's nature of business is subject to complex and comprehensive federal, state and other regulations. Also, concerns related to commodity price fluctuations might deter its growth to some extent. Delays in completion of projects and operational risks are other headwinds.”
Other equities analysts have also issued reports about the company. Deutsche Bank AG lowered NextEra Energy from a buy rating to a hold rating and set a $131.00 price objective on the stock. in a research note on Friday, September 23rd. Bank of America Corp. reiterated a buy rating and issued a $149.00 price objective on shares of NextEra Energy in a research note on Tuesday, September 27th. Mizuho reiterated a buy rating and issued a $138.00 price objective on shares of NextEra Energy in a research note on Friday, October 7th. Morgan Stanley reiterated a buy rating on shares of NextEra Energy in a research note on Monday, August 1st. Finally, BMO Capital Markets reiterated a buy rating and issued a $135.00 price objective on shares of NextEra Energy in a research note on Thursday, July 28th. Four equities research analysts have rated the stock with a hold rating, ten have given a buy rating and one has issued a strong buy rating to the company’s stock. The stock presently has a consensus rating of Buy and an average price target of $129.08.
NextEra Energy (NYSE:NEE) opened at 116.30 on Wednesday. The company has a market cap of $54.34 billion, a P/E ratio of 21.98 and a beta of 0.26. NextEra Energy has a 12-month low of $96.19 and a 12-month high of $131.98. The firm’s 50-day moving average price is $120.86 and its 200-day moving average price is $123.62.
NextEra Energy (NYSE:NEE) last announced its quarterly earnings results on Monday, October 31st. The company reported $1.74 earnings per share for the quarter, topping analysts’ consensus estimates of $1.67 by $0.07. NextEra Energy had a return on equity of 11.90% and a net margin of 14.74%. The company earned $4.81 billion during the quarter, compared to analysts’ expectations of $4.87 billion. During the same quarter in the previous year, the firm earned $1.60 earnings per share. Analysts expect that NextEra Energy will post $6.21 EPS for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 15th. Stockholders of record on Friday, November 25th will be issued a $0.87 dividend. This represents a $3.48 annualized dividend and a dividend yield of 2.99%. The ex-dividend date is Tuesday, November 22nd. NextEra Energy’s payout ratio is currently 66.29%.
In other NextEra Energy news, Director Amy B. Lane bought 1,000 shares of NextEra Energy stock in a transaction dated Wednesday, November 2nd. The shares were acquired at an average cost of $122.90 per share, with a total value of $122,900.00. The purchase was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Armando Pimentel, Jr. sold 5,022 shares of the business’s stock in a transaction that occurred on Thursday, November 3rd. The stock was sold at an average price of $123.70, for a total value of $621,221.40. Following the completion of the transaction, the chief executive officer now directly owns 72,165 shares in the company, valued at $8,926,810.50. The disclosure for this sale can be found here. 0.66% of the stock is owned by insiders.
Several hedge funds and other institutional investors have recently made changes to their positions in NEE. Schulhoff & Co. Inc. increased its position in shares of NextEra Energy by 8.5% in the second quarter. Schulhoff & Co. Inc. now owns 2,432 shares of the company’s stock valued at $317,000 after buying an additional 190 shares during the last quarter. Wright Investors Service Inc. increased its position in shares of NextEra Energy by 8.7% in the second quarter. Wright Investors Service Inc. now owns 15,121 shares of the company’s stock valued at $1,972,000 after buying an additional 1,215 shares during the last quarter. Willingdon Wealth Management increased its position in shares of NextEra Energy by 8.7% in the third quarter. Willingdon Wealth Management now owns 5,000 shares of the company’s stock valued at $611,000 after buying an additional 400 shares during the last quarter. Badgley Phelps & Bell Inc. increased its position in shares of NextEra Energy by 2.5% in the second quarter. Badgley Phelps & Bell Inc. now owns 86,814 shares of the company’s stock valued at $11,321,000 after buying an additional 2,124 shares during the last quarter. Finally, CIBC World Markets Inc. increased its position in shares of NextEra Energy by 640.5% in the second quarter. CIBC World Markets Inc. now owns 27,887 shares of the company’s stock valued at $3,636,000 after buying an additional 24,121 shares during the last quarter. 72.53% of the stock is currently owned by institutional investors and hedge funds.
About NextEra Energy
NextEra Energy, Inc (NEE) is a holding company. The Company is an electric power company in North America with electric generating facilities located in over 30 states in the United States and approximately five provinces in Canada. NEE’s operating segments are FPL, an electric utility, and NEER, an energy business.