NextEra Energy, Inc. (NYSE: NEE) has received a consensus rating of “Moderate Buy” from analysts following its latest quarterly earnings report. A total of twenty analysts are currently covering the stock, with four giving it a hold recommendation, thirteen recommending a buy, and three issuing a strong buy rating. The average price target for NextEra shares stands at approximately $91.56.
Analysts have recently provided updated insights on NextEra Energy. Notably, Wells Fargo & Company upgraded the stock to a “strong buy” on October 28, 2023. In addition, BTIG Research reiterated a “buy” rating with a price target of $100.00, while BMO Capital Markets maintained an “outperform” rating, adjusting its price objective to $89.00. Barclays also set a target price of $88.00, rating the company as “equal weight.”
Quarterly Earnings Report Highlights
NextEra Energy reported its quarterly earnings on October 28, revealing an earnings per share (EPS) of $1.13, surpassing the consensus estimate of $1.04 by $0.09. The company achieved a net margin of 24.72% and a return on equity of 12.42%. However, revenue for the quarter came in at $7.97 billion, falling short of analysts’ expectations of $8.13 billion. In the same quarter last year, NextEra Energy reported an EPS of $1.03, reflecting a year-over-year revenue increase of 5.3%.
Looking ahead, analysts project that NextEra Energy will post an EPS of 3.68 for the current fiscal year.
Dividend and Insider Transactions
On December 15, 2023, NextEra Energy paid a quarterly dividend of $0.5665 per share to stockholders of record as of November 21, 2023. This dividend translates to an annualized amount of $2.27 and a yield of 2.8%. The company’s payout ratio currently stands at 71.97%.
In related news, CEO Armando Pimentel, Jr. sold 145,140 shares of the company on November 17, 2023, for a total value of approximately $12.18 million at an average price of $83.91. Following this transaction, Pimentel retains 162,693 shares valued at roughly $13.65 million, indicating a 47.15% reduction in his ownership stake. The transaction was disclosed in filings with the Securities and Exchange Commission (SEC).
Additionally, Mark Lemasney, the Executive Vice President, sold 846 shares on September 25, 2023, at an average price of $74.90, totaling about $63,365. This sale represented an 8.37% decrease in his position.
Over the last ninety days, company insiders have sold a total of 157,322 shares valued at around $13.15 million. Currently, corporate insiders own approximately 0.18% of NextEra Energy’s stock.
Institutional Investment Activity
Recent activity among institutional investors reflects a growing interest in NextEra Energy. Activest Wealth Management increased its holdings in the company by 79.7% during the second quarter, acquiring an additional 157 shares to reach a total of 354 shares worth around $25,000. Other firms, including Harbor Asset Planning Inc., Goodman Advisory Group LLC, and Tripletail Wealth Management LLC, also established new positions in the company during this period.
As of now, institutional investors hold approximately 78.72% of NextEra Energy’s stock, indicating strong backing from larger investment entities.
NextEra Energy, headquartered in Juno Beach, Florida, is recognized as a leading clean energy company. Its operational structure includes regulated utility operations through Florida Power & Light Company (FPL) and competitive renewable generation businesses under NextEra Energy Resources. The company develops and operates a diverse portfolio of wind, solar, and energy storage projects, contributing to its significant presence in the clean energy sector.
