Atlantic Union Bankshares Corp has significantly reduced its stake in Dominion Energy, Inc. as per its recent disclosure with the Securities and Exchange Commission. During the second quarter, the banking corporation decreased its position in Dominion Energy by 76.6%, selling off 91,724 shares of the utilities provider’s stock. Following this move, Atlantic Union Bankshares Corp now owns only 28,057 shares of Dominion Energy, with a total value of $1,453,000 at the end of the quarter.
Dominion Energy recently announced that it will be issuing a quarterly dividend on September 20th. Shareholders who were on record as of September 1st will receive a dividend payment of $0.6675 per share. The ex-dividend date was set for August 31st. With an annualized dividend payout ratio of 98.89%, Dominion Energy’s dividend stands at $2.67 per share and offers investors a yield of 5.49%.
While Atlantic Union Bankshares Corp’s reduction in holdings may initially raise concerns among shareholders, it is essential to keep in mind that investment strategies can vary for different institutional investors. The decision to sell shares does not necessarily suggest any decline in Dominion Energy’s overall performance or prospects.
Dominion Energy is a leading provider of utilities and energy solutions across North America. As one of the nation’s largest producers and transporters of energy, the company serves millions of customers with electricity or natural gas every day.
As an energy company, Dominion Energy operates primarily in three segments: Electric Delivery, Gas Infrastructure and Operations, and Power Generation and Portfolio Management.
The Electric Delivery segment focuses on providing reliable electricity to customers through transmission and distribution services across various states in the United States. With a vast network covering thousands of miles, Dominion Energy ensures efficient power delivery to residential, commercial, industrial, and governmental entities.
In Gas Infrastructure and Operations segment entails providing reliable natural gas services through transmission, distribution, and storage. These services are extended to customers located across 14 states and offer a stable energy source for homes, businesses, and industrial operations.
The Power Generation and Portfolio Management segment encompass Dominion Energy’s diverse portfolio of power generation sources. The company strategically combines conventional and renewable sources to ensure a sustainable and reliable power supply while optimizing the utilization of various resources available.
With its broad spectrum of operations, Dominion Energy aims to meet the evolving energy needs of customers while transitioning towards cleaner and greener energy solutions. The company has been investing in renewable energy projects such as solar farms and wind turbines to reduce its carbon footprint and contribute to a more sustainable future.
In conclusion, Atlantic Union Bankshares Corp’s reduction in shares of Dominion Energy should be interpreted within the context of their specific investment strategy. As one of the leading utilities providers in North America, Dominion Energy continues to demonstrate its commitment to shareholders through regular dividend payments. Moreover, the company’s emphasis on clean energy solutions positions it well amid growing demand for sustainable alternatives.
Updated on: 19/09/2023
Debt to equity ratio: Strong Sell
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Sell
DCF: Strong Buy
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Toni Sacconaghi Sacconaghi
Institutional Investors Show Interest in Dominion Energy, but Analyst Forecasts Remain Uncertain
Dominion Energy (NYSE:D), a leading utilities provider with a market cap of $40.70 billion, has recently caught the attention of several institutional investors and hedge funds. Tucker Asset Management LLC, for instance, purchased a new position valued at about $25,000 during the first quarter of this year. Meanwhile, Pacific Center for Financial Services acquired shares worth approximately $28,000 in that same period.
This pattern continued as AXS Investments LLC entered the scene, buying shares amounting to roughly $30,000 during the fourth quarter of 2022. Core Alternative Capital also joined the mix by increasing its stake in Dominion Energy by an impressive 63% during the first quarter of this year. As a result, Core Alternative Capital now owns 533 shares worth $30,000 after acquiring an additional 206 shares.
Carderock Capital Management Inc., a staunch advocate for diversification in investment portfolios, acknowledged Dominion Energy’s potential by purchasing a stake worth about $34,000 during the first quarter.
All these moves from institutional investors and hedge funds are indicative of their bullish outlook on Dominion Energy. In fact, hedge funds and other institutional investors currently hold around 70.66% of the company’s stock.
Although there seems to be growing interest from investors, several brokerages have issued reports regarding Dominion Energy’s future prospects. Scotiabank revised its price target from $68.00 to $60.00 while maintaining a “sector outperform” rating for the company in a report dated September 11th.
Similarly, BMO Capital Markets downgraded their price target on Dominion Energy from $54.00 to $50.00 but maintained an “outperform” rating on the stock in a report published on September 6th. Guggenheim also decreased their price target from $63.00 to $60.00 in their report released on July 7th.
Wells Fargo & Company echoed the trend by reducing their price objective from $61.00 to $55.00 in a research report on July 3rd. Barclays, on the other hand, initiated coverage on Dominion Energy with an “equal weight” rating and set a price objective of $52.00 for the company.
According to Bloomberg’s data, the stock currently has an average rating of “Hold” among analysts, with one analyst even giving it a sell rating. However, some analysts maintain that Dominion Energy may be worth considering as they have assigned it a buy rating.
Taking into account all these different opinions and forecasts, there is still much perplexity surrounding Dominion Energy’s future prospects. The stock opened at $48.65 on Tuesday, reflecting its current market value and investor sentiment. With a price-to-earnings ratio of 18.02 and a PEG ratio of 3.71, Dominion Energy remains an enigma for some investors who are trying to decipher its true valuation.
Dominion Energy’s financials further complicate matters as they recently released their quarterly earnings data on August 4th. The utilities provider reported earnings per share (EPS) of $0.53 for the quarter, surpassing analysts’ consensus estimate of $0.48 by $0.05.
In terms of revenue, Dominion Energy generated $3.79 billion during the quarter compared to the consensus estimate of $3.72 billion—a positive sign for the company. Moreover, Dominion Energy experienced a year-over-year increase of 5.5% in quarterly revenue.
However, it’s important to note that Dominion Energy’s performance shouldn’t be solely based on this quarter as it needs to be assessed within the context of previous years’ performance.
In conclusion, while institutional investors and hedge funds have recently shown increased interest in Dominion Energy through various transactions in their stakes in the company, there still remains uncertainty regarding its future outlook.
The conflicting reports released by different brokerages further add to this perplexity. Dominion Energy’s stock currently stands at $48.65 with a 12-month range of $45.76 to $81.31.
Only time will reveal whether the institutional investors’ bullish outlook or the skeptical analyst forecasts hold true for Dominion Energy, and investors should exercise caution while navigating this complex and dynamic investment landscape.