NextEra Energy, Inc. (NYSE:NEE) has garnered a consensus rating of “Moderate Buy” from twenty-one research firms currently covering the stock, according to MarketBeat. Among these analysts, five have issued a hold recommendation, while thirteen have assigned a buy recommendation, and three have rated the stock as a strong buy. The average price target over the next twelve months stands at $91.00.
Several recent reports have influenced this outlook. On October 29, 2023, Citigroup reaffirmed its “buy” rating, raising its price target from $84.00 to $96.00. On the same day, BTIG Research reiterated a “buy” rating for NextEra Energy, suggesting positive sentiment surrounding the company’s performance. Additionally, HSBC increased its price target from $94.00 to $95.00 in a report issued on November 10, 2023.
Financial Performance and Dividends
NextEra Energy released its quarterly earnings results on October 28, 2023. The utilities provider reported earnings per share (EPS) of $1.13, surpassing analysts’ consensus estimate of $1.04 by $0.09. The company achieved a return on equity of 12.42% and a net margin of 24.72%. Revenue for the quarter totaled $7.97 billion, slightly below the estimated $8.13 billion. This represents a year-over-year revenue increase of 5.3%. Analysts project that NextEra Energy will report an EPS of 3.68 for the current fiscal year.
In addition to its earnings report, the company announced a quarterly dividend of $0.5665 per share, which will be paid on December 15, 2023. Shareholders on record as of November 21, 2023, will receive this dividend, which translates to an annualized payout of $2.27 and a yield of 2.7%. The current payout ratio for NextEra Energy stands at 72.29%, indicating a commitment to returning value to shareholders.
Insider Activity and Institutional Investments
Recent insider transactions have raised some eyebrows. CEO Armando Pimentel, Jr. sold 145,140 shares of the company’s stock on November 17, 2023, at an average price of $83.91, totaling approximately $12.18 million. This transaction reduced his holdings by 47.15%, leaving him with 162,693 shares valued at around $13.65 million.
In a separate transaction, Executive Vice President Mark Lemasney sold 846 shares on September 25, 2023, at an average price of $74.90, amounting to $63,365.40. Following this sale, he retained 9,267 shares, valued at about $694,098.30. Over the past ninety days, insiders have sold a total of 168,168 shares worth approximately $13.92 million, with corporate insiders now owning 0.18% of the company’s stock.
Several institutional investors have recently adjusted their positions in NextEra Energy as well. Activest Wealth Management increased its stake by 79.7% in the second quarter, holding 354 shares valued at $25,000 after acquiring an additional 157 shares. Other firms, including Harbor Asset Planning Inc., Goodman Advisory Group LLC, and Tripletail Wealth Management LLC, also entered new positions, each valued at approximately $25,000. Currently, institutional investors and hedge funds own 78.72% of NextEra Energy’s stock.
NextEra Energy, Inc. operates through its subsidiaries, focusing on generating, transmitting, distributing, and selling electric power across North America. The company harnesses a diverse range of energy sources, including wind, solar, nuclear, and natural gas. It also develops and manages long-term clean energy solutions, including renewable generation facilities and battery storage projects.
As NextEra Energy continues to navigate a dynamic market, analysts and investors will be watching closely to see how the company’s strategies unfold in the coming quarters.
