NextEra Energy Inc. (NYSE: NEE) stock fell -2.01% on Friday to $83.97 against a previous-day closing price of $85.69. With 6.68 million shares changed hands, the volume of the stock remained lighter than its average volume of 7.68 million shares. During the session, the Utilities – Regulated Electric company that operates in wider Utilities sector, reached to the highest price of $86.44 whereas the lowest price it dropped to was $83.95. The 52-week range on NEE shows that it touched its highest point at $93.73 and its lowest point at $67.22 during that stretch. It currently has a 1-year price target of $96.93. With its current market cap of 167.36 billion, NEE has annualized dividend of $1.70 while the current yield stands at 2.02%. Beta for the stock currently stands at 0.47.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of NEE was down-trending over the past week, with a drop of -5.52%, but this was down by -5.16% over a month. Three-month performance surged to 12.42% while six-month performance rose 1.35%. The stock gained 2.50% in the past year, while it has lost -10.06% so far this year. A look at the trailing 12-month EPS for NEE yields 1.31 with Next year EPS estimates of 3.09. For the next quarter, that number is 0.80. This implies an EPS growth rate of 18.70% for this year and 7.71% for next year. EPS is expected to grow by 9.45% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 3.00%.
Float and Shares Shorts:
At present, 1.97 billion NEE shares are outstanding with a float of 1.96 billion shares on hand for trading. On Jul 14, 2022, short shares totaled 24.11 million, which was 1.23% higher than short shares on Jun 14, 2022. In addition to Mr. John W. Ketchum as the firm’s Pres, CEO & Chairman, Mr. Charles E. Sieving serves as its Exec. VP & Gen. Counsel.
Through their ownership of 79.86% of NEE’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 42.33% of NEE, in contrast to 38.01% held by mutual funds. Shares owned by individuals account for 0.26%. As the largest shareholder in NEE with 9.00% of the stake, The Vanguard Group, Inc. holds 176,911,496 shares worth 176,911,496. A second-largest stockholder of NEE, SSgA Funds Management, Inc., holds 112,964,857 shares, controlling over 5.75% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in NEE, holding 93,435,380 shares or 4.76% stake. With a 2.96% stake in NEE, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 58,167,675 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.23% of NEE stock, is the second-largest Mutual Fund holder. It holds 43,842,751 shares valued at 3.73 billion. SPDR Series – Utilities Select Se holds 1.68% of the stake in NEE, owning 33,034,759 shares worth 2.81 billion.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for NEE since 20 analysts follow the stock currently. There are 12 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 6 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With NEE analysts setting a high price target of $115.00 and a low target of $83.00, the average target price over the next 12 months is $98.00. Based on these targets, NEE could surge 36.95% to reach the target high and fall by -1.16% to reach the target low. Reaching the average price target will result in a growth of 16.71% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. NEE will report FY 2022 earnings on 01/27/2023. Analysts have provided yearly estimates in a range of $2.92 being high and $2.83 being low. For NEE, this leads to a yearly average estimate of $2.87. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. NextEra Energy Inc. surprised analysts by $0.05 when it reported $0.81 EPS against a consensus estimate of $0.76. The surprise factor in the prior quarter was $0.03. Based on analyst estimates, the high estimate for the next quarter is $0.91 and the low estimate is $0.70. The average estimate for the next quarter is thus $0.80.
Summary of Insider Activity:
Insiders traded NEE stock several times over the past three months with 1 Buys and 2 Sells. In these transactions, 12,909 shares were bought while 2,680 shares were sold. The number of buy transactions has increased to 46 while that of sell transactions has risen to 36 over the past year. The total number of shares bought during that period was 981,082 while 449,376 shares were sold.