Entergy Co. (NYSE:ETR) has been the topic of interest for nineteen research firms who cover the company. Bloomberg.com reports that these firms have given Entergy a “Hold” consensus rating, with one analyst rating the stock with a sell rating, five analysts issuing a hold rating and four granting a buy rating to the company. For this year, the average 1-year target price of Entergy is $122.35 among those same analysts who covered the stock in the last year.
Entergy recently announced its quarterly dividend which will be paid out on Thursday, June 1st to shareholders of record as at Thursday, May 4th. Shareholders will each receive a dividend payout of $1.07 per share which represents an annualized dividend of $4.28 and a yield of 3.93%. The ex-dividend date for this dividend is scheduled for Wednesday, May 3rd. Entergy’s current payout ratio stands at 79.41%.
There have been recent modifications to holdings by institutional investors and hedge funds regarding Entergy stock as well. YHB Investment Advisors Inc., during Q4 of last year, purchased new shares in Entergy valued at about $206k while State of Michigan Retirement System raised its holdings in this particular utility provider’s stock by .04% during Q4 increasing its shares from 55,102 to over 200 additional shares worth $6,221k currently.
Trust Co. of Vermont also bought new positions in Entergy late last year valued at approximately $61k while Allspring Global Investments Holdings LLC lifted its holdings in Entergy by over 5% during Q3 when it acquired an additional holding amounting up to over $11m worth now.
Victory Capital Management Inc., another major player in investments management has raised its position level in Entergy by over +7% during Q3 raising shares from below half-a-million (i.e., 524,000) to over $50m worth as at the end of that year. Institutional investors are currently believed to own about 89.98% of Entergy stock.
Insider Selling and Analyst Ratings: A Close Look at American Utility Company, Entergy
Entergy: A Close Look at Insiders’ Selling and Analyst Ratings
Entergy, an American utility company, had its ratings updated by several research analysts in the first quarter of 2017. Mizuho decreased their target price from $114.00 to $113.00, yet set a “buy” rating for the stock on Thursday, January 19th; Morgan Stanley increased their target price on shares of Entergy from $97.00 to $106.00 with an “underweight” rating; Citigroup cut their price target from $131.00 to $117.00 and gave a “neutral” rating on Wednesday, April 12th; Bank of America lowered Entergy from a “buy” rating to a “neutral” one with a reduced price objective of $119.00 on Tuesday, January 3rd; finally LADENBURG THALM/SH SH initiated coverage on Entergy and issued a “buy” rating with a $116 target price.
A closer look shows insider actions that involved insider- selling activities of two executives. Deanna D.Rodriguez sold 300 shares of the stock in a single transaction for overall proceeds totaling over US$31K while Marcus V.Brown parted ways with more substantial holdings involving up to 12,500 shares sold in February worth over US$1.3 million.
Entergy announced that it would pay out its quarterly dividend on June 1st as scheduled. Recorded shareholders will be eligible to receive payment amounting to about US$1.07 per share against the commonly recognized annualized rate at about US$4.28 per share generating revenues that translate into yield almost 4%. The ex-dividend date is Wednesday, May 3rd and Entergy’s dividend payout ratio stands in line with last year’s views.
The figures reveal solid evidence regarding insider-selling activity backed up by analysts’ review of stocks. While a higher target price has been set by some analysts, the gap needs to revamp as several analysts have lowered their ratings. Will Entergy show a sharp turn? Investors will keep watching closely for other insider-selling activities as well as any potential updates on this vital American utility company.
In conclusion, shareholders pay close attention to stakeholder actions and inferences thereof. A trending assessment from sell-side analysts with the support of meaningful stock sales by insiders suggests moderate caution before buying into ETR stock expecting elevated returns. Stocks are an investment platform that cannot be created without putting in due diligence and research efforts beforehand.
