Brookstone Capital Management, a prominent institutional investor, has recently reduced its stake in CenterPoint Energy, Inc. by 23.2%. The reduction was disclosed in the company’s most recent Form 13F filing with the Securities and Exchange Commission (SEC). As per the filing, Brookstone Capital Management now owns 12,132 shares of CenterPoint Energy after selling 3,658 shares during the second quarter. This decrease highlights a shift in investment strategy by the institutional investor.
The value of Brookstone Capital Management’s holdings in CenterPoint Energy at the time of filing was recorded at $358,000. This reduction in stake reflects an adjustment made by the institution based on various factors like market conditions and industry performance.
CenterPoint Energy is a utilities provider listed on NYSE under the ticker symbol CNP. In its last earnings report announced on July 27th of this year, the company exceeded analysts’ consensus estimates. It reported earnings per share (EPS) of $0.28 for the quarter, surpassing expectations by $0.01.
The firm’s quarterly revenue stood at $1.88 billion compared to analysts’ predicted amount of $1.92 billion. While there was a slight miss in revenue expectations, CenterPoint Energy showcased a net margin of 8.28% and recorded a return on equity of 9.71%. These figures demonstrate strong financial performance and stability.
In comparison to the same quarter of the previous fiscal year when CenterPoint Energy reported EPS of $0.31, there has been a slight decline in earnings per share for this period under consideration.
Equities analysts currently project that CenterPoint Energy will post an EPS figure of 1.49 for this fiscal year as a whole. This indicates positive projections for future performance despite the slight fluctuations observed during recent quarters.
Investors are advised to carefully assess developments and potential opportunities within CenterPoint Energy before making any investment decisions. The recent reduction in stake by Brookstone Capital Management may be a point of consideration, but it is important to review all available information and consult with financial professionals before forming any conclusions.
In conclusion, CenterPoint Energy’s earnings report showcased strong performance, surpassing analysts’ expectations. However, the reduction in stake by Brookstone Capital Management suggests caution may be warranted when considering investments in this particular utilities provider. It is crucial to conduct thorough research and analysis, taking into account the latest financial data and industry trends, to make informed investment decisions.
CNX Resources Corporation
CNX
Strong Buy
Updated on: 05/12/2023
Financial Health
Very Healthy
Debt to equity ratio: Buy
Price to earnings ratio: Buy
Price to book ratio: Strong Buy
DCF: Strong Buy
ROE: Strong Buy
Institutional Investors and Analysts Assess CenterPoint Energy’s Performance in the Utilities Industry
CenterPoint Energy, Inc. (CNP) has seen significant activity from institutional investors and hedge funds in recent months. JPMorgan Chase & Co., for example, raised its stake in CNP by 6.5% during the fourth quarter, now owning over 10 million shares of the utilities provider’s stock worth $315 million. Similarly, Maryland State Retirement & Pension System increased its stake by 2.9% during the second quarter, owning over 714,000 shares worth $20.8 million.
ING Groep NV also entered the picture by purchasing a new position in CNP during the fourth quarter valued at $285,000. Gabelli Funds LLC experienced an increase of 11.2% in their stake and now own over 109,000 shares of CNP stock worth $3.3 million.
In addition to these institutional investors and hedge funds, First Horizon Advisors Inc. increased its stake in CNP by 13.7% during the fourth quarter and now holds over 4,400 shares valued at $132,000.
Overall, it is estimated that about 88.96% of CNP stock is owned by hedge funds and other institutional investors.
As of Friday’s market opening, CNP stock was priced at $28.30 per share with a market capitalization of $17.86 billion. The company has experienced a range between $25.03 and $33.50 on a twelve-month scale.
The financial health of CenterPoint Energy can be analyzed using several key metrics: a price-to-earnings ratio of 24.61, indicating that investors are willing to pay more for each dollar generated by the company; a price-to-earnings growth ratio of 2.54 implies that CNP may have potential for future growth; and a beta of 0.89 suggests that the stock is less volatile than the overall market.
Furthermore, CenterPoint Energy boasts a current ratio of 0.88 and a quick ratio of 0.65, which indicates that the company may face challenges meeting short-term financial obligations. Additionally, the debt-to-equity ratio of 1.67 suggests that CNP has a moderate level of debt.
Investors in CNP benefited from a quarterly dividend payment on Thursday, September 14th. A dividend of $0.19 per share was paid to investors who were on record as of August 17th. This represents an annualized dividend yield of 2.69%. It is important to note that CenterPoint Energy’s payout ratio stands at 66.09%, indicating that the company distributes over half of its earnings to shareholders.
Various research analysts have provided their insights on CNP stock in recent months. Morgan Stanley decreased their target price from $30 to $29 and labeled the stock as “overweight” in their research note dated August 23rd. Mizuho downgraded the stock from “buy” to “neutral” with a target price of $33 on July 28th, while UBS Group also downgraded CNP from “buy” to “neutral” and decreased their target price from $33 to $30 on June 6th due to valuation concerns.
On the other hand, Guggenheim raised their price target for CNP from $32 to $33 on July 7th, reflecting a positive outlook for the company’s future performance.
Barclays initiated coverage on CNP with an “underweight” rating and set a price target of $28 in their report released on August 23rd.
Overall, analysts have provided mixed recommendations for CNP stock: one analyst has rated it as sell, three as hold, and seven as buy. According to Bloomberg, there is a consensus among analysts that CNP should be considered a “Moderate Buy,” with an average price target of $32.10.
As the company continues to navigate the challenges and opportunities presented in the utilities industry, investors will closely monitor CenterPoint Energy’s performance and heed the advice of analysts to make informed investment decisions.
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