Sempra Energy (NYSE:SRE) achieved a new 52-week high on November 17, 2023, trading at a peak of $95.74 before closing at $95.13. The trading volume reached 1,533,924 shares, up from its previous close of $92.79. This surge has sparked interest among investors regarding whether now is the right time to buy into the stock.
Analyst Ratings and Price Targets
Several analysts have provided insights into Sempra Energy’s stock performance. In a report dated October 22, Jefferies Financial Group set a price target of $89.00, maintaining a “hold” rating. Conversely, Morgan Stanley offered a more optimistic target of $97.00 with an “overweight” rating on February 2. Barclays followed suit on February 3, with a price objective of $95.00 and also a rating of “overweight.”
Adding to the positive outlook, UBS Group reaffirmed its “outperform” rating, projecting a target price of $100.00 on January 22. Weiss Ratings, however, issued a “hold (c+)” rating on January 21. Overall, investment analysts have rated Sempra Energy with one Strong Buy, seven Buy, and six Hold ratings, leading to an average consensus rating of “Moderate Buy” and a consensus price target of $95.83, according to MarketBeat data.
Insider Transactions and Institutional Investment
In recent developments, significant insider transactions have taken place. On November 19, Dyan Z. Wold, the Chief Accounting Officer, sold 1,510 shares at an average price of $91.38, totaling $137,983.80. Following this sale, Wold holds 3,481 shares, valued at approximately $318,093.78, reflecting a 30.25% decrease in her position.
Additionally, Karen L. Sedgwick, the Chief Financial Officer, sold 7,564 shares on November 24 at an average price of $92.29, amounting to $698,081.56. After this transaction, Sedgwick owns 41,280 shares valued at about $3,809,731.20, marking a 15.49% decline in her ownership. Over the past ninety days, insiders have sold a total of 15,074 shares worth $1,385,605, with corporate insiders holding only 0.27% of the company’s stock.
Institutional investors have also been active around Sempra Energy shares. Vanguard Group Inc. increased its stake by 1.3% in the fourth quarter, now holding 76,734,070 shares valued at $6.77 billion after acquiring an additional 1,008,476 shares. Capital International Investors raised its position by 9.2% in the third quarter, owning 54,071,206 shares worth $4.87 billion.
State Street Corp and Morgan Stanley also expanded their holdings in the fourth quarter, with State Street lifting its stake by 5.2%, owning 36,810,449 shares, and Morgan Stanley increasing its position by 17.0%, reaching 22,330,091 shares. Currently, institutional investors control approximately 89.65% of the stock.
Sempra Energy, headquartered in San Diego, operates as an energy infrastructure company, providing electricity and natural gas. Its services cover regulated utility operations and non-regulated infrastructure businesses, emphasizing a diversified portfolio of energy delivery, transmission, and storage solutions.
For those considering the investment potential in Sempra Energy, the recent stock movements, analyst ratings, and insider activities present a complex picture of opportunity and caution. Investors are encouraged to monitor ongoing developments as they assess the viability of the stock in their portfolios.
