On this day, June 11th, 2023, Penserra Capital Management LLC announced a new acquisition of Eversource Energy (NYSE:ES). As disclosed to the Securities and Exchange Commission (SEC), the firm purchased more than 42,000 shares of the utilities provider’s stock for a total value of $3.5 million in the fourth quarter of last year.
Eversource Energy is primarily involved in the generation, transmission and distribution of natural gas and electricity. The company operates through four main segments namely Electric Distribution, Electric Transmission, Natural Gas Distribution and Water Distribution. The Electric Distribution segment is responsible for distributing electricity to retail customers.
Shares of NYSE ES opened at $70.37 on Friday which also marked a 50-day moving average closing at $75.57 while the two-hundred day moving average reported being slightly lesser at $78.80 per share traded. The company has reported a debt-to-equity ratio of 1.31 alongside a current ratio of 0.65 indicating that it can pay off its current liabilities with its current assets asset base as well as a quick ratio of 0.58 further displaying strong liquidity levels for investors and stakeholders alike.
With a market cap standing at an impressive $24.55 billion, Eversource Energy boasts several impressive financials such as its price-to-earnings (P/E) ratio which stands at around 16.88 signifying good earnings growth potential when compared against other companies listed within this industry with P/E ratios ranging between higher values ranging between forty-five to sixty times their market price.
A noteworthy metric often examined by analysts seeking speculative growth opportunities is the company’s Price-to-Earnings-Growth Ratio (PEG) which currently stands at around 2.55 indicating strong confidence present from key equity investors both domestically and internationally who appear to be taking strategic bets on their future projections regarding positive long-term earnings growth capacity embedded within the company’s current market fundamentals.
As for the company’s beta which measures a stock’s volatility compared with that of other stocks in the market, Eversource Energy reports an impressive score of 0.47 signifying low volatility levels in relation to existing stocks present within its operating markets.
Eversource Energy has exhibited strong performance both in terms of financial outcomes and market analysis over the past year, with analysts projecting solid growth potential for years to come. Perhaps Penserra Capital Management LLC has made a prudent move as they look to benefit from this expanding swath of financial gains being offered up by this powerhouse producer of gas and electricity.
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Institutional Investors Show Increased Interest in Eversource Energy as Company Continues to Deliver Strong Performance
Eversource Energy Continues to Garner the Attention of Institutional Investors
Institutional investors have been showing a particular interest in Eversource Energy, as evidenced by their recent stake acquisitions and reductions. Moran Wealth Management LLC acquired a new stake in Eversource Energy during the fourth quarter of 2022, valued at approximately $7,838,000. They were joined by Advisors Asset Management Inc., who grew their position in Eversource Energy by 1.5% during the same period.
In addition to these new stakeholders, existing partners also made strategic moves. Prio Wealth Limited Partnership added to its stake in Eversource Energy during the fourth quarter, while Charles Schwab Investment Management Inc. raised its position by 1.5% around the same time.
Finally, Deutsche Bank AG lifted its stake in shares of Eversource Energy by an impressive 14.2% in Q4 2022, adding to the already growing list of institutional investors holding a significant portion of the company’s stock – currently standing at 77.37%.
Eversource Energy continues to be rated and scrutinized heavily by research analyst reports and has been assigned an average rating of “Hold” across all trackers referencing data from Bloomberg.com. The consensus price target comes out at $86.23.
The company operates through various segments including Electric Distribution, Electric Transmission, Natural Gas Distribution and Water Distribution while engaging in generating, transmitting and distributing natural gas and electricity.
Investors bullish on EverSource energy
Overseeing its most recent earnings call on May 3rd revealed that analysts had set projections that easily surpassed expectations with $1.41 earnings per share for Q1 of FY2023 which is higher than analysts’ consensus estimates by seven cents ($1.34).
Company revenue stood tall at $3.80 billion for Q1FY23 as compared to an anticipated estimate of $3.24 billion showing YoY increased growth of 9.3% giving rise to investors’ interest in the company.
Eversource Energy announced its quarterly dividend on May 17th, which will be paid on June 30th where record holders as of May 18th will receive $0.675 per share, representing an annualized payout of $2.70 and a current yield of 3.84%.
All signs point to Eversource Energy making significant advancements by balancing its expansionary plans with financial profit among its many stakeholders. Time will tell whether this level of interest from institutional investors bear fruits or result in missed opportunities, but for now the excitement and anticipation continue to grow with each ensuing milestone reached by the energy company.