Eversource Energy (ES) Downgraded by Zacks Investment Research

Eversource Energy (NYSE:ES) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Friday.

According to Zacks, “Eversource Energy’s shares have underperformed its industry in the past three months.  Ongoing delay in the approval of Northern Pass project, its dependence on third party, stringent regulation, and underperformance of its transmission and distribution system due to breakdown are concerns. Refusal by Connecticut Water will hurt its plans to expand water business through acquisition. However, Eversource’s investments in renewable energy generation, expansion of transmission and distribution systems will help it to provide reliable services to its customers. Start of the new water segment will diversify the source of its revenues. Its regulated investment plans will help boost earnings per share by 5-7% over the 2019-2023 time frame from the 2018 level.”

Several other brokerages have also recently issued reports on ES. Macquarie raised shares of Eversource Energy from a “neutral” rating to an “outperform” rating and set a $73.00 price objective for the company in a research note on Monday, March 4th. Bank of America cut shares of Eversource Energy from a “neutral” rating to an “underperform” rating and set a $68.00 price objective for the company. in a research note on Monday, February 25th. Guggenheim cut shares of Eversource Energy from a “buy” rating to a “neutral” rating in a research note on Friday, February 22nd. Scotiabank reaffirmed a “sell” rating and set a $63.00 price objective on shares of Eversource Energy in a research note on Thursday, February 21st. Finally, Morgan Stanley upped their price objective on shares of Eversource Energy from $69.00 to $71.00 and gave the company an “equal weight” rating in a research note on Tuesday, February 12th. Three equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and eight have assigned a buy rating to the company’s stock. Eversource Energy presently has a consensus rating of “Hold” and an average target price of $69.18.

Shares of ES traded up $0.87 during mid-day trading on Friday, hitting $71.79. 149,485 shares of the company were exchanged, compared to its average volume of 1,800,395. Eversource Energy has a 1-year low of $52.76 and a 1-year high of $71.27. The company has a quick ratio of 0.50, a current ratio of 0.56 and a debt-to-equity ratio of 1.07. The company has a market cap of $22.39 billion, a PE ratio of 21.92, a price-to-earnings-growth ratio of 3.59 and a beta of 0.31.

Eversource Energy (NYSE:ES) last released its quarterly earnings results on Wednesday, February 20th. The utilities provider reported $0.73 earnings per share for the quarter, missing the consensus estimate of $0.75 by ($0.02). Eversource Energy had a return on equity of 9.18% and a net margin of 12.23%. The company had revenue of $2.03 billion for the quarter, compared to analyst estimates of $1.71 billion. During the same quarter last year, the company earned $0.75 EPS. The firm’s revenue for the quarter was up 7.4% on a year-over-year basis. As a group, sell-side analysts expect that Eversource Energy will post 3.45 earnings per share for the current year.

In other news, VP Jay S. Buth sold 1,650 shares of the stock in a transaction that occurred on Monday, February 25th. The shares were sold at an average price of $69.44, for a total value of $114,576.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Sanford Cloud, Jr. sold 1,042 shares of the stock in a transaction that occurred on Monday, March 4th. The shares were sold at an average price of $68.87, for a total transaction of $71,762.54. The disclosure for this sale can be found here. In the last three months, insiders sold 111,201 shares of company stock valued at $7,727,360. Corporate insiders own 0.45% of the company’s stock.

Institutional investors have recently bought and sold shares of the company. Private Advisor Group LLC lifted its holdings in shares of Eversource Energy by 12.8% in the 3rd quarter. Private Advisor Group LLC now owns 13,983 shares of the utilities provider’s stock worth $859,000 after acquiring an additional 1,591 shares during the last quarter. Cambridge Investment Research Advisors Inc. lifted its holdings in shares of Eversource Energy by 12.0% in the 3rd quarter. Cambridge Investment Research Advisors Inc. now owns 28,412 shares of the utilities provider’s stock worth $1,746,000 after acquiring an additional 3,042 shares during the last quarter. Janney Montgomery Scott LLC lifted its holdings in shares of Eversource Energy by 1.9% in the 3rd quarter. Janney Montgomery Scott LLC now owns 44,607 shares of the utilities provider’s stock worth $2,741,000 after acquiring an additional 851 shares during the last quarter. ING Groep NV acquired a new position in shares of Eversource Energy in the 3rd quarter worth approximately $462,000. Finally, Sumitomo Mitsui Trust Holdings Inc. lifted its holdings in shares of Eversource Energy by 0.8% in the 3rd quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 999,782 shares of the utilities provider’s stock worth $61,427,000 after acquiring an additional 7,997 shares during the last quarter. 73.38% of the stock is owned by institutional investors and hedge funds.

About Eversource Energy

Eversource Energy, a public utility holding company, engages in the energy delivery business. The company operates in three segments: Electric Distribution, Electric Transmission, and Natural Gas Distribution. It is involved in the transmission and distribution of electricity; and distribution of natural gas.

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