In a recent shift in market sentiment, Wall Street Zen has downgraded shares of NiSource (NYSE: NI) from a hold rating to a sell rating. This change, detailed in a research report published on October 28, 2023, reflects a growing caution among analysts regarding the company’s future performance.
Several other research firms have also recently provided their evaluations of NiSource. On October 31, 2023, Jefferies Financial Group altered its stance by elevating the stock from a hold rating to a buy rating, raising its price target from $46.00 to $50.00. Similarly, BMO Capital Markets increased its price objective from $46.00 to $47.00, giving the stock an “outperform” rating on September 29, 2023. Barclays followed suit, lifting its price target from $44.00 to $46.00 with an “overweight” rating on October 21, 2023.
Mizuho also revised its target price from $44.00 to $50.00, assigning an “outperform” rating. On October 30, 2023, Evercore ISI increased its target from $46.00 to $47.00, maintaining an “in-line” rating. The mixed signals from analysts have led to a current consensus rating of “Moderate Buy” with an average price target of $46.44, according to MarketBeat.com.
Recent Earnings Report and Guidance
NiSource reported its quarterly earnings results on October 29, 2023. The utilities provider announced earnings per share (EPS) of $0.19 for the quarter, falling short of the consensus estimate of $0.20 by $0.01. Revenue for the quarter reached $1.27 billion, significantly exceeding analyst expectations of $983.25 million.
The company recorded a return on equity of 8.09% and a net margin of 14.15%. In comparison, during the same quarter last year, NiSource had an EPS of $0.20. Looking ahead, the company has set its fiscal year 2025 guidance at an EPS range of $1.870 to $1.89 and for fiscal year 2026, a range of $2.020 to $2.07. Analysts predict that NiSource will achieve an EPS of $1.91 for the current fiscal year.
Insider Trading and Institutional Activity
In related news, on November 25, 2023, Executive Vice President Kimberly S. Cuccia sold 8,000 shares of NiSource stock at an average price of $43.13, totaling $345,040.00. Following this sale, Cuccia retains 41,247 shares valued at approximately $1,778,983.11, marking a 16.24% decrease in her ownership of the stock. This transaction was disclosed in a legal filing with the U.S. Securities and Exchange Commission (SEC).
Recent data indicates significant activity among institutional investors. Orion Portfolio Solutions LLC dramatically increased its stake in NiSource by 55,625.2% in the second quarter, now owning 16,866,898 shares valued at $680,411,000. Norges Bank also acquired a new stake worth approximately $296,543,000 during the same period.
Vanguard Group Inc. raised its holdings by 5.3% in the first quarter, now owning 60,844,001 shares valued at $2,439,236,000. Millennium Management LLC increased its stake by an astonishing 2,288.8% in the third quarter, obtaining 3,166,313 shares valued at $137,101,000. T. Rowe Price Investment Management Inc. also boosted its stake by 12.4%, currently holding 24,020,859 shares worth $962,997,000. Collectively, institutional investors and hedge funds own 91.64% of NiSource’s stock.
NiSource Inc. is a prominent energy holding company based in the United States, specializing in regulated natural gas and electric utility services. The company serves approximately 3.3 million customers and operates extensive distribution and transmission pipelines across several states, including Indiana, Ohio, Pennsylvania, Virginia, Kentucky, and Maryland.
