Eversource Energy (ES) Cut to Hold at Zacks Investment Research

Zacks Investment Research downgraded shares of Eversource Energy (NYSE:ES) from a buy rating to a hold rating in a research report released on Tuesday.

According to Zacks, “Shares of Eversource Energy returned higher than the industry in last six months. Eversource Energy‘s systematic investments in renewable energy generation, primarily in transmission and distribution systems will help it to provide reliable services to its customers.  Margins of the company will improve if the company continues to reduce operating costs. Moreover, its regulated investment plans will help it to boost earnings per share by 5–7% over the 2017–2020 time frame from the 2016 level of $2.96. However, the company's decision to withdraw its Access Northeast Pipeline plan due to regulatory uncertainty, will have an adverse impact on its growth prospects.  Moreover, it faces challenges due to severe weather conditions.”

Several other brokerages have also issued reports on ES. Morgan Stanley raised Eversource Energy from an equal weight rating to an overweight rating and set a $72.00 target price for the company in a research note on Wednesday, December 13th. Bank of America started coverage on Eversource Energy in a research note on Tuesday, October 24th. They issued an underperform rating and a $62.00 target price for the company. Williams Capital upped their target price on Eversource Energy from $64.00 to $66.00 and gave the stock a buy rating in a research note on Monday, October 23rd. Finally, Credit Suisse Group upped their target price on Eversource Energy from $60.00 to $63.00 and gave the stock a neutral rating in a research note on Monday, October 2nd. One research analyst has rated the stock with a sell rating, seven have given a hold rating and three have assigned a buy rating to the company’s stock. Eversource Energy presently has a consensus rating of Hold and an average target price of $64.95.

Shares of Eversource Energy (NYSE ES) traded down $0.17 during midday trading on Tuesday, hitting $61.35. The stock had a trading volume of 2,804,661 shares, compared to its average volume of 1,930,000. Eversource Energy has a 52 week low of $54.10 and a 52 week high of $66.15. The company has a quick ratio of 0.80, a current ratio of 0.92 and a debt-to-equity ratio of 0.95. The stock has a market capitalization of $19,440.00, a price-to-earnings ratio of 19.92, a price-to-earnings-growth ratio of 3.13 and a beta of 0.31.

Eversource Energy (NYSE:ES) last issued its quarterly earnings data on Wednesday, November 1st. The utilities provider reported $0.82 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.84 by ($0.02). Eversource Energy had a return on equity of 9.03% and a net margin of 12.84%. The business had revenue of $1.99 billion for the quarter, compared to analysts’ expectations of $2.06 billion. During the same period in the previous year, the firm posted $0.83 EPS. The firm’s revenue for the quarter was down 2.5% compared to the same quarter last year. analysts anticipate that Eversource Energy will post 3.14 EPS for the current year.

The business also recently disclosed a quarterly dividend, which was paid on Friday, December 29th. Shareholders of record on Monday, December 18th were given a $0.475 dividend. The ex-dividend date of this dividend was Friday, December 15th. This represents a $1.90 annualized dividend and a yield of 3.10%. Eversource Energy’s payout ratio is currently 61.69%.

In other Eversource Energy news, COO Werner J. Schweiger sold 10,098 shares of the business’s stock in a transaction that occurred on Thursday, November 9th. The stock was sold at an average price of $64.68, for a total value of $653,138.64. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.53% of the company’s stock.

A number of hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. lifted its position in Eversource Energy by 2.4% in the second quarter. Vanguard Group Inc. now owns 33,055,292 shares of the utilities provider’s stock valued at $2,006,787,000 after purchasing an additional 781,327 shares during the last quarter. BlackRock Inc. lifted its position in Eversource Energy by 1.6% in the second quarter. BlackRock Inc. now owns 24,355,049 shares of the utilities provider’s stock valued at $1,478,596,000 after purchasing an additional 374,229 shares during the last quarter. Bank of New York Mellon Corp raised its holdings in shares of Eversource Energy by 3.4% during the third quarter. Bank of New York Mellon Corp now owns 15,936,793 shares of the utilities provider’s stock valued at $963,220,000 after acquiring an additional 516,965 shares in the last quarter. Legal & General Group Plc raised its holdings in shares of Eversource Energy by 5.4% during the third quarter. Legal & General Group Plc now owns 2,801,473 shares of the utilities provider’s stock valued at $169,322,000 after acquiring an additional 144,185 shares in the last quarter. Finally, American Century Companies Inc. raised its holdings in shares of Eversource Energy by 14.4% during the third quarter. American Century Companies Inc. now owns 2,653,302 shares of the utilities provider’s stock valued at $160,366,000 after acquiring an additional 333,139 shares in the last quarter. Hedge funds and other institutional investors own 72.14% of the company’s stock.

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Eversource Energy Company Profile

Eversource Energy is a utility holding company engaged in the energy delivery business. The Company operates through three segments: electric distribution, electric transmission and natural gas distribution. The Company’s electric distribution segment consists of the distribution businesses, which are engaged in the distribution of electricity to retail customers in Connecticut, Massachusetts, and New Hampshire and the regulated electric generation businesses.

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