Zacks Investment Research cut shares of Nextera Energy Partners (NYSE:NEP) from a buy rating to a hold rating in a research note issued to investors on Monday morning.
According to Zacks, “NextEra Energy Partners reported mixed results in the third quarter, with earnings surpassing estimates but the top line lagging the same. NextEra Energy Partners is poised to gain from its decision to acquire 1,388-MW portfolio of wind and solar assets from NextEra Energy Resources. Its renewable assets in the United States have long-term contracts and enjoy the benefits of government initiatives to produce higher volume of electricity from clean sources. The decision to sell its Canadian assets and focus on high quality domestic renewable assets is expected to be accretive to long-term goal. In last one-year NextEra Energy Partners’ units have underperformed its industry's rally. However, if prices of natural gas continue to remain low, it will impact the demand for renewable energy projects. Stringent rules and regulations, along with dependence on a limited group of customers to generate earnings are headwinds.”
NEP has been the subject of several other reports. Mizuho began coverage on shares of Nextera Energy Partners in a report on Monday, August 13th. They set a buy rating and a $54.50 target price for the company. Guggenheim reaffirmed a buy rating and set a $50.00 target price on shares of Nextera Energy Partners in a report on Monday, July 23rd. TheStreet raised shares of Nextera Energy Partners from a c rating to a b- rating in a report on Wednesday, July 25th. Morgan Stanley lowered shares of Nextera Energy Partners from an overweight rating to an equal weight rating and set a $50.00 target price for the company. in a report on Monday, July 16th. Finally, Howard Weil reaffirmed a sector perform rating on shares of Nextera Energy Partners in a report on Tuesday, July 24th. Seven investment analysts have rated the stock with a hold rating and four have given a buy rating to the stock. The stock presently has an average rating of Hold and a consensus target price of $47.50.
Nextera Energy Partners (NYSE:NEP) last posted its earnings results on Tuesday, October 23rd. The solar energy provider reported $0.58 earnings per share for the quarter, beating the consensus estimate of $0.45 by $0.13. The firm had revenue of $178.00 million during the quarter, compared to analyst estimates of $283.40 million. Nextera Energy Partners had a net margin of 13.55% and a return on equity of 7.34%. On average, sell-side analysts anticipate that Nextera Energy Partners will post 3.11 earnings per share for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Wednesday, November 14th. Investors of record on Tuesday, November 6th will be issued a $0.45 dividend. This represents a $1.80 annualized dividend and a yield of 4.09%. The ex-dividend date of this dividend is Monday, November 5th. This is a positive change from Nextera Energy Partners’s previous quarterly dividend of $0.44. Nextera Energy Partners’s payout ratio is presently 265.15%.
A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Public Employees Retirement Association of Colorado increased its holdings in Nextera Energy Partners by 137.0% in the 3rd quarter. Public Employees Retirement Association of Colorado now owns 5,775 shares of the solar energy provider’s stock worth $280,000 after acquiring an additional 3,338 shares in the last quarter. James Investment Research Inc. purchased a new stake in Nextera Energy Partners in the 3rd quarter worth $151,000. Alps Advisors Inc. purchased a new stake in Nextera Energy Partners in the 3rd quarter worth $1,218,000. Bank of Montreal Can increased its holdings in Nextera Energy Partners by 19.5% in the 3rd quarter. Bank of Montreal Can now owns 189,950 shares of the solar energy provider’s stock worth $9,213,000 after acquiring an additional 31,000 shares in the last quarter. Finally, Public Employees Retirement System of Ohio purchased a new stake in Nextera Energy Partners in the 2nd quarter worth $1,948,000. 83.68% of the stock is owned by institutional investors.
Nextera Energy Partners Company Profile
NextEra Energy Partners, LP acquires, owns, and operates contracted clean energy projects in the United States and Canada. It owns a portfolio of contracted renewable generation assets consisting of wind and solar projects with approximately 3,867 megawatts of capacity, as well as seven contracted natural gas pipeline assets.
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