CenterPoint Energy, Inc. (NYSE:CNP) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Monday.

According to Zacks, “CenterPoint Energy has been strengthening its infrastructure through regular capital investment and acquisitions, which will help it to meet the requirements of an expanding customer base. Toward this end, the company continues with its capital expenditure plan of $7 billion from 2017 through 2021. Moreover, it is investing substantially to expand its operations to cope with increasing utility demand. The company is currently focused on upgrading infrastructure and improving reliability. Moreover, the shares company returned higher than the Zacks categorized Utility-Electric Power industry, in the last twelve months. However, the company’s results are subject to the impact of weather patterns, regulatory and judicial proceedings, and fluctuating commodity prices. Moreover, the company is overvalued in terms of EV/EBITDA ratio when compared to its historical levels.”

Other analysts also recently issued reports about the stock. Barclays PLC boosted their target price on shares of CenterPoint Energy from $27.00 to $29.00 and gave the company an “equal weight” rating in a research note on Monday, March 20th. BidaskClub downgraded shares of CenterPoint Energy from a “buy” rating to a “hold” rating in a research note on Tuesday, June 13th. Deutsche Bank AG boosted their target price on shares of CenterPoint Energy from $27.00 to $28.00 and gave the company a “hold” rating in a research note on Tuesday, April 11th. Finally, J P Morgan Chase & Co started coverage on shares of CenterPoint Energy in a research note on Thursday, June 29th. They set a “neutral” rating and a $29.00 target price on the stock. Two analysts have rated the stock with a sell rating, eight have assigned a hold rating and one has issued a buy rating to the stock. The company currently has an average rating of “Hold” and an average price target of $27.33.

Shares of CenterPoint Energy (NYSE:CNP) traded up 0.33% during midday trading on Monday, hitting $27.71. The stock had a trading volume of 2,042,049 shares. The firm has a market cap of $11.94 billion, a price-to-earnings ratio of 25.66 and a beta of 0.63. CenterPoint Energy has a 12-month low of $21.83 and a 12-month high of $29.08. The company’s 50-day moving average price is $28.08 and its 200-day moving average price is $27.05.

CenterPoint Energy (NYSE:CNP) last announced its earnings results on Friday, May 5th. The utilities provider reported $0.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.36 by $0.01. CenterPoint Energy had a net margin of 5.68% and a return on equity of 15.20%. The company had revenue of $2.74 billion for the quarter, compared to the consensus estimate of $2.14 billion. During the same period in the previous year, the business earned $0.32 EPS. The company’s revenue was up 37.9% on a year-over-year basis. Equities research analysts forecast that CenterPoint Energy will post $1.31 EPS for the current year.

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In related news, CEO Scott M. Prochazka sold 1,000 shares of the company’s stock in a transaction on Monday, July 3rd. The shares were sold at an average price of $27.66, for a total value of $27,660.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Corporate insiders own 0.20% of the company’s stock.

A number of large investors have recently modified their holdings of the company. AXA acquired a new stake in shares of CenterPoint Energy during the first quarter worth about $3,436,000. BlackRock Inc. boosted its stake in shares of CenterPoint Energy by 1,521.6% in the first quarter. BlackRock Inc. now owns 39,034,890 shares of the utilities provider’s stock worth $1,076,193,000 after buying an additional 36,627,665 shares in the last quarter. Federated Investors Inc. PA boosted its stake in shares of CenterPoint Energy by 0.7% in the fourth quarter. Federated Investors Inc. PA now owns 20,922 shares of the utilities provider’s stock worth $516,000 after buying an additional 140 shares in the last quarter. Mn Services Vermogensbeheer B.V. boosted its stake in shares of CenterPoint Energy by 5.1% in the first quarter. Mn Services Vermogensbeheer B.V. now owns 10,912 shares of the utilities provider’s stock worth $281,000 after buying an additional 529 shares in the last quarter. Finally, Sawtooth Solutions LLC boosted its stake in shares of CenterPoint Energy by 13.1% in the first quarter. Sawtooth Solutions LLC now owns 10,003 shares of the utilities provider’s stock worth $276,000 after buying an additional 1,162 shares in the last quarter. Hedge funds and other institutional investors own 77.35% of the company’s stock.

About CenterPoint Energy

CenterPoint Energy, Inc is a public utility holding company. The Company, through its subsidiaries, owns and operates electric transmission and distribution facilities, and natural gas distribution facilities. The Electric Transmission & Distribution segment provides electric transmission and distribution services to retail electric providers.

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