Kestra Advisory Services LLC, a highly reputable institutional investor, has recently filed a Form 13F with the Securities and Exchange Commission indicating that they have trimmed their holdings in WEC Energy Group, Inc. (NYSE:WEC). According to this filing, Kestra sold 1,989 shares of WEC during the fourth quarter of 2020 resulting in a reduction of their position by 7.4%. Kestra’s holdings in WEC are now worth $2,343,000.
This report has generated considerable interest among investment analysts who are keen to know why Kestra decided to offload some of its stakes in this respected utilities provider. Investors who want to keep abreast of what other hedge funds are doing with their WEC holdings can find useful information on HoldingsChannel.com which provides up-to-date details on insider trades and the latest Form 13F filings.
The opening price for WEC on Thursday was $96.74 with its 50-day moving average price set at $93.02 while the 200 day moving average price is also maintained at $93.02. The stock hit a twelve month low last year at $80.82 but rallied back impressively reaching a high of $108.39 within the same period. With a market capitalization standing at $30.51 billion and a beta value of just 0.40, it appears that investors still perceive WEC as representing an attractive proposition.
However, analysts do note that there is no shortage of challenges facing utilities providers like WEC in these uncertain times, given the global economic fallout from COVID-19 crisis and many companies being forced to lower dividends payouts or buybacks due to cash flow problems stemming from lower demand for energy consumption caused by developments related to COVID-19.
Therefore investors need to be diligent when considering any utility provider as an investment option suggesting an analysis encompassing not only debt-to-equity ratios but also current and quick ratios is required. Despite the challenges that lay ahead, with a reasonable PE ratio of 21.69 and a relatively low price-to-earnings-growth ratio of 3.60, it is no surprise that investors remain interested in WEC Energy Group as we move through these tumultuous times.
Institutional Investor Activity and Positive Q4 Results Drive Interest in WEC Energy Group Inc.
WEC Energy Group Inc., the Wisconsin-based electricity and natural gas provider, has recently seen a flurry of activity from institutional investors trading its shares. Several hedge funds and other institutional, high-net-worth investors have either entered into or exited out of positions in WEC Energy Group over the past quarter. The Texas Permanent School Fund added almost 3,000 shares during this time frame, while Inspire Investing LLC lifted its stake by 4.7%. However, it’s worth noting that 74.05% of WEC Energy Group is currently owned by such institutions.
These changes among major stakeholders have not gone unnoticed by market watchers. Recently, Wells Fargo & Company reduced their price target on WEC Energy Group stock from $109 to $106 per share, but maintained an “overweight” rating overall. StockNews.com began covering the company around the same time period with a “hold” rating.
WEC Energy Group has also just announced positive results for Q4 2020 and surpassed expected earnings per share (EPS) targets by $0.05 to post EPS of $0.80 for the quarter. This result came alongside increased revenue realized during Q4, which exceeded analysts’ estimates at $2.56 billion.
As a holding company with segments operating in several US states including Wisconsin and Illinois, it will be interesting to see if market volatility continues to drive investor sentiment toward or away from WEC Energy Group in the first two quarters of 2021 as the energy sector braces itself for both new challenges and potential opportunities alike due to political shakeups and gradual discussion surrounding climate change issues at high levels like Congress globally.
