Zacks Investment Research lowered shares of Eversource Energy (NYSE:ES) from a hold rating to a sell rating in a research report sent to investors on Monday.
According to Zacks, “Eversource Energy’s shares have underperformed its industry in the past three months. Ongoing delay in the approval of Northern Pass project, Eversource Energy’s dependence on third party, stringent regulation, and underperformance of its transmission and distribution system due to breakdown are concerns. Refusal by Connecticut Water will hurt its plans to expand water business through acquisition. However, Eversource’s investments in renewable energy generation, expansion of transmission and distribution systems will help it to provide reliable services to its customers. Start of the new water segment will diversify the source of its revenues. Its regulated investment plans will help boost earnings per share by 5-7% over the 2019-2023 time frame from the 2018 level.”
Several other equities analysts have also recently issued reports on ES. Bank of America cut Eversource Energy from a neutral rating to an underperform rating and set a $68.00 price objective for the company. in a research note on Monday, February 25th. Scotiabank reiterated a sell rating and issued a $63.00 price objective on shares of Eversource Energy in a research note on Thursday, February 21st. Williams Capital reiterated a buy rating on shares of Eversource Energy in a research note on Monday, March 18th. Morgan Stanley lifted their price objective on Eversource Energy from $69.00 to $71.00 and gave the company an equal weight rating in a research note on Tuesday, February 12th. Finally, Guggenheim cut Eversource Energy from a buy rating to a neutral rating in a research note on Friday, February 22nd. Three equities research analysts have rated the stock with a sell rating, four have given a hold rating and nine have assigned a buy rating to the company’s stock. The company presently has a consensus rating of Hold and an average target price of $69.18.
Eversource Energy (NYSE:ES) last announced its earnings results on Wednesday, February 20th. The utilities provider reported $0.73 EPS for the quarter, missing analysts’ consensus estimates of $0.75 by ($0.02). Eversource Energy had a net margin of 12.23% and a return on equity of 9.18%. The firm had revenue of $2.03 billion for the quarter, compared to analysts’ expectations of $1.71 billion. During the same quarter last year, the business earned $0.75 earnings per share. The business’s revenue was up 7.4% compared to the same quarter last year. As a group, equities analysts expect that Eversource Energy will post 3.46 EPS for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Friday, March 29th. Investors of record on Tuesday, March 5th will be paid a dividend of $0.535 per share. This is a boost from Eversource Energy’s previous quarterly dividend of $0.51. The ex-dividend date of this dividend is Monday, March 4th. This represents a $2.14 annualized dividend and a yield of 2.98%. Eversource Energy’s payout ratio is presently 65.24%.
In other news, CEO James J. Judge sold 79,508 shares of the business’s stock in a transaction that occurred on Tuesday, February 26th. The stock was sold at an average price of $69.50, for a total value of $5,525,806.00. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, VP Gregory B. Butler sold 11,500 shares of the business’s stock in a transaction that occurred on Tuesday, March 5th. The shares were sold at an average price of $68.63, for a total value of $789,245.00. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 111,201 shares of company stock valued at $7,727,360. 0.45% of the stock is owned by company insiders.
Several large investors have recently added to or reduced their stakes in ES. JPMorgan Chase & Co. increased its holdings in shares of Eversource Energy by 3.8% in the third quarter. JPMorgan Chase & Co. now owns 2,102,792 shares of the utilities provider’s stock valued at $129,195,000 after purchasing an additional 76,996 shares during the period. MML Investors Services LLC increased its holdings in shares of Eversource Energy by 38.9% in the third quarter. MML Investors Services LLC now owns 17,398 shares of the utilities provider’s stock valued at $1,069,000 after purchasing an additional 4,875 shares during the period. Keybank National Association OH increased its holdings in shares of Eversource Energy by 13.6% in the third quarter. Keybank National Association OH now owns 16,586 shares of the utilities provider’s stock valued at $1,019,000 after purchasing an additional 1,984 shares during the period. Bank of New York Mellon Corp increased its holdings in shares of Eversource Energy by 100,075.7% in the third quarter. Bank of New York Mellon Corp now owns 15,640,429 shares of the utilities provider’s stock valued at $960,950,000 after purchasing an additional 15,624,816 shares during the period. Finally, BlackRock Inc. increased its holdings in shares of Eversource Energy by 2.1% in the third quarter. BlackRock Inc. now owns 27,468,588 shares of the utilities provider’s stock valued at $1,687,670,000 after purchasing an additional 562,968 shares during the period. 74.02% of the stock is currently owned by institutional investors and hedge funds.
About Eversource Energy
Eversource Energy, a public utility holding company, engages in the energy delivery business. The company operates in four segments: Electric Distribution, Electric Transmission, Natural Gas Distribution, and Water Distribution. It is involved in the transmission and distribution of electricity; and distribution of natural gas.
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