Sempra Energy (NYSE:SRE) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research note issued to investors on Saturday.
According to Zacks, “Sempra Energy continues to face headwinds in the form of stringent government regulations and operational risks. Its operations are subject to risks associated with breakdown or failure of equipment or processes due to fuel supply or transportation disruptions, natural calamities and accidents. The company will face operational difficulties in case of any such event. It is further exposed to foreign currency risks because of its international presence and has to invest substantially to expand its operations. Moreover, the Aliso Canyon leak has been pushing up its quarterly expenses. However, steady focus on the expansion of its renewable capacity will enable the company to provide emission-free power to customers. “
SRE has been the topic of several other reports. Bank of America lowered shares of Sempra Energy from a “buy” rating to a “hold” rating and set a $112.00 price target on the stock. in a research note on Thursday, December 28th. Royal Bank of Canada restated a “buy” rating on shares of Sempra Energy in a research note on Tuesday, November 7th. JPMorgan Chase & Co. cut their target price on shares of Sempra Energy from $126.00 to $125.00 and set a “neutral” rating on the stock in a research note on Thursday, October 12th. Goldman Sachs Group upgraded shares of Sempra Energy from a “neutral” rating to a “buy” rating and upped their target price for the stock from $117.00 to $129.00 in a research note on Wednesday, October 11th. Finally, Wells Fargo & Co cut their target price on shares of Sempra Energy from $130.00 to $128.00 and set an “outperform” rating on the stock in a research note on Tuesday, October 10th. One research analyst has rated the stock with a sell rating, four have assigned a hold rating and six have issued a buy rating to the company’s stock. The company currently has a consensus rating of “Hold” and an average price target of $122.33.
Sempra Energy (NYSE:SRE) last announced its quarterly earnings results on Monday, October 30th. The utilities provider reported $1.04 earnings per share for the quarter, meeting the consensus estimate of $1.04. The firm had revenue of $2.68 billion for the quarter, compared to analysts’ expectations of $2.64 billion. Sempra Energy had a net margin of 10.22% and a return on equity of 8.81%. The company’s revenue was up 5.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.02 EPS. sell-side analysts predict that Sempra Energy will post 5.25 EPS for the current year.
A number of large investors have recently added to or reduced their stakes in the business. Chartist Inc. CA increased its position in shares of Sempra Energy by 0.4% in the second quarter. Chartist Inc. CA now owns 2,885 shares of the utilities provider’s stock valued at $325,000 after buying an additional 11 shares in the last quarter. Salem Investment Counselors Inc. increased its position in shares of Sempra Energy by 1.0% in the second quarter. Salem Investment Counselors Inc. now owns 4,549 shares of the utilities provider’s stock valued at $513,000 after buying an additional 44 shares in the last quarter. Peapack Gladstone Financial Corp increased its position in shares of Sempra Energy by 1.6% in the second quarter. Peapack Gladstone Financial Corp now owns 4,080 shares of the utilities provider’s stock valued at $460,000 after buying an additional 65 shares in the last quarter. Laurel Wealth Advisors Inc. increased its position in shares of Sempra Energy by 0.5% in the second quarter. Laurel Wealth Advisors Inc. now owns 14,125 shares of the utilities provider’s stock valued at $1,592,000 after buying an additional 70 shares in the last quarter. Finally, Nordea Investment Management AB boosted its stake in shares of Sempra Energy by 0.9% during the second quarter. Nordea Investment Management AB now owns 10,608 shares of the utilities provider’s stock valued at $1,196,000 after acquiring an additional 90 shares during the last quarter. Hedge funds and other institutional investors own 80.55% of the company’s stock.
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About Sempra Energy
Sempra Energy is a holding company. The Company’s principal operating units are Sempra Utilities, which includes its San Diego Gas & Electric Company (SDG&E), Southern California Gas Company (SoCalGas) and Sempra South American Utilities segments, and Sempra Infrastructure, which includes its Sempra Mexico, Sempra Renewables and Sempra LNG & Midstream segments.
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