Zacks Investment Research Upgrades CenterPoint Energy (CNP) to “Hold”
CenterPoint Energy (NYSE:CNP) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report issued on Tuesday.
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, the company's shares outperformed the broader industry in the last twelve months. However, its results are subject to the impact of weather patterns, regulatory and judicial proceedings and fluctuating commodity prices. Again, dependence on REPs for timely payment of fees and a large amount of outstanding debt are deterring CenterPoint’s growth.”
Several other brokerages also recently weighed in on CNP. Guggenheim downgraded shares of CenterPoint Energy from a “buy” rating to a “neutral” rating in a report on Monday, December 4th. They noted that the move was a valuation call. Citigroup upped their target price on shares of CenterPoint Energy from $27.00 to $30.00 and gave the stock a “neutral” rating in a report on Monday, November 20th. Bank of America started coverage on shares of CenterPoint Energy in a report on Tuesday, October 24th. They issued a “neutral” rating and a $30.00 target price for the company. J P Morgan Chase & Co set a $30.00 target price on shares of CenterPoint Energy and gave the stock a “hold” rating in a report on Thursday, October 12th. Finally, SunTrust Banks reaffirmed a “hold” rating and issued a $30.00 target price on shares of CenterPoint Energy in a report on Monday, October 2nd. Eleven research analysts have rated the stock with a hold rating and one has given a strong buy rating to the company. The company presently has an average rating of “Hold” and a consensus price target of $28.89.
CenterPoint Energy (NYSE:CNP) last issued its quarterly earnings data on Friday, November 3rd. The utilities provider reported $0.39 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.39. CenterPoint Energy had a net margin of 6.59% and a return on equity of 16.00%. The firm had revenue of $2.10 billion during the quarter, compared to the consensus estimate of $2.07 billion. During the same quarter in the previous year, the firm posted $0.41 EPS. The company’s revenue for the quarter was up 11.1% compared to the same quarter last year. sell-side analysts expect that CenterPoint Energy will post 1.31 earnings per share for the current fiscal year.
In other CenterPoint Energy news, CEO Scott M. Prochazka sold 1,000 shares of the business’s stock in a transaction on Wednesday, November 1st. The shares were sold at an average price of $29.61, for a total value of $29,610.00. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. In the last quarter, insiders sold 3,000 shares of company stock worth $88,080. Corporate insiders own 0.20% of the company’s stock.
Hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. raised its position in shares of CenterPoint Energy by 3.7% during the 2nd quarter. Vanguard Group Inc. now owns 49,060,465 shares of the utilities provider’s stock valued at $1,343,275,000 after buying an additional 1,767,259 shares in the last quarter. Ameriprise Financial Inc. raised its position in shares of CenterPoint Energy by 6.8% during the 3rd quarter. Ameriprise Financial Inc. now owns 9,550,152 shares of the utilities provider’s stock valued at $278,959,000 after buying an additional 611,608 shares in the last quarter. FMR LLC raised its position in shares of CenterPoint Energy by 1.2% during the 2nd quarter. FMR LLC now owns 8,841,881 shares of the utilities provider’s stock valued at $242,091,000 after buying an additional 108,431 shares in the last quarter. JPMorgan Chase & Co. raised its position in shares of CenterPoint Energy by 6.9% during the 3rd quarter. JPMorgan Chase & Co. now owns 8,583,166 shares of the utilities provider’s stock valued at $250,198,000 after buying an additional 554,719 shares in the last quarter. Finally, APG Asset Management N.V. raised its position in shares of CenterPoint Energy by 410.6% during the 3rd quarter. APG Asset Management N.V. now owns 7,214,510 shares of the utilities provider’s stock valued at $210,736,000 after buying an additional 5,801,591 shares in the last quarter. Institutional investors and hedge funds own 77.98% 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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