CenterPoint Energy, Inc. (NYSE:CNP) has received an average target price of $41.50 following analyses from fourteen research firms, according to data from MarketBeat.com. The consensus recommendation for the stock is currently classified as a “Hold,” reflecting a blend of investment perspectives. Out of these analysts, eight have issued a hold rating, while six have suggested a buy recommendation.
Several analysts have recently provided insights into CenterPoint Energy’s stock. For instance, on October 6, 2023, Evercore ISI initiated coverage with an “in-line” rating and a price target of $42.00. Shortly thereafter, on October 27, 2023, Wells Fargo & Company set an “overweight” rating with a target price of $44.00. Additionally, Morgan Stanley raised its target from $37.00 to $39.00 and maintained an “equal weight” rating on October 21, 2023.
On October 10, 2023, UBS Group revised their price target upwards from $44.00 to $46.00, giving the stock a buy rating. Scotiabank also increased its target price from $42.00 to $45.00 on October 24, 2023, assigning a “sector outperform” rating.
Institutional Investors’ Activity
Recent trading activity shows that institutional investors and hedge funds have made adjustments to their stakes in CenterPoint Energy. Zacks Investment Management increased its position by 0.8% during the third quarter, resulting in ownership of 31,142 shares valued at $1.208 million. Similarly, Mather Group LLC grew its stake by 2.1% to hold 13,050 shares worth $506,000.
Signature Estate & Investment Advisors LLC also increased its shares by 3.9% during the second quarter, now owning 7,627 shares valued at $280,000. Global Retirement Partners LLC raised its holdings by 9.0% to own 3,745 shares valued at $145,000. Lastly, Parallel Advisors LLC increased its position by 6.7% to 5,315 shares worth $206,000. Overall, institutional investors control approximately 91.77% of CenterPoint Energy’s stock.
Recent Stock Performance and Earnings Report
On October 23, 2023, CenterPoint Energy reported quarterly earnings, revealing an earnings per share (EPS) of $0.50, surpassing the consensus estimate of $0.46 by $0.04. The company’s revenue for the quarter reached $1.99 billion, falling short of analyst expectations of $2.04 billion. A year prior, CenterPoint Energy reported an EPS of $0.31.
As of the most recent trading session, CNP shares opened at $39.39. The stock has experienced fluctuations, with a one-year low of $30.59 and a high of $40.50. Key financial ratios for the company include a current ratio of 0.51, a quick ratio of 0.38, and a debt-to-equity ratio of 1.76. The market capitalization stands at approximately $25.71 billion.
In addition, the company has announced a quarterly dividend of $0.22 per share, set to be paid on December 11, 2023. Shareholders on record as of November 20, 2023 will be eligible for this dividend, which equates to an annual yield of 2.2% and a payout ratio of 55.70%.
CenterPoint Energy operates as a public utility holding company in the United States, providing electric and natural gas services. The company’s electric segment covers transmission and distribution services, alongside electric generation assets. As analysts continue to evaluate CenterPoint Energy’s performance, the upcoming months will reveal how these changes impact its stock and investor sentiment.
