PNM Resources (NYSE:PNM) Downgraded by Zacks Investment Research to Sell

Zacks Investment Research downgraded shares of PNM Resources (NYSE:PNM) from a hold rating to a sell rating in a research report released on Wednesday morning, Zacks.com reports.

According to Zacks, “PNM Resources, Inc. is an electric utility that provides electric generation, transmission and distribution service to its rate-regulated customers. In New Mexico, the utility’s retail electric service territory covers a large area of north central New Mexico, including the cities of Albuquerque, Rio Rancho, and Santa Fe, and certain areas of southern New Mexico. Service to retail electric customers is subject to the jurisdiction of the NMPRC. PNM has decided to stop pursuing wholesale generation contracts although some sales continue to be made to wholesale customers. Service to wholesale customers is regulated by FERC. Regulation encompasses the utility’s electric rates, service, accounting, issuances of securities, construction of major new generation, types of generation resources, transmission and distribution facilities, and other matters. “

A number of other equities analysts have also weighed in on the company. UBS Group lowered to a sell rating and lifted their price objective for the company from GBX 530 ($6.93) to GBX 540 ($7.06) in a research note on Wednesday, June 12th. Barclays reiterated a top pick rating and set a GBX 3,250 ($42.47) price objective on shares of in a research note on Wednesday, June 19th. Bank of America upgraded Air Products & Chemicals from an underperform rating to a neutral rating and lifted their price objective for the company from $170.00 to $215.00 in a research note on Thursday, April 25th. Williams Capital reiterated a hold rating on shares of Southwest Gas in a research note on Monday, March 18th. Finally, Wells Fargo & Co reiterated a buy rating on shares of Allergan in a research note on Monday, June 10th. Three equities research analysts have rated the stock with a sell rating, three have issued a hold rating and one has given a buy rating to the company’s stock. PNM Resources has a consensus rating of Hold and an average target price of $48.28.



NYSE PNM opened at $49.51 on Wednesday. The company’s 50-day moving average is $49.85. The stock has a market cap of $4.01 billion, a price-to-earnings ratio of 24.76, a P/E/G ratio of 4.26 and a beta of 0.29. PNM Resources has a fifty-two week low of $37.17 and a fifty-two week high of $52.10. The company has a debt-to-equity ratio of 1.66, a current ratio of 0.69 and a quick ratio of 0.59.

PNM Resources (NYSE:PNM) last released its quarterly earnings data on Tuesday, May 7th. The utilities provider reported $0.13 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.11 by $0.02. The business had revenue of $349.65 million during the quarter, compared to analyst estimates of $273.12 million. PNM Resources had a return on equity of 8.68% and a net margin of 6.10%. The company’s revenue was up 10.0% on a year-over-year basis. During the same quarter last year, the business posted $0.21 EPS. Sell-side analysts expect that PNM Resources will post 2.16 earnings per share for the current year.

Several institutional investors have recently made changes to their positions in PNM. Millennium Management LLC increased its stake in shares of PNM Resources by 212.4% in the 4th quarter. Millennium Management LLC now owns 947,749 shares of the utilities provider’s stock valued at $38,943,000 after purchasing an additional 644,357 shares in the last quarter. AJO LP increased its stake in shares of PNM Resources by 53.7% in the 1st quarter. AJO LP now owns 804,837 shares of the utilities provider’s stock valued at $38,101,000 after purchasing an additional 281,037 shares in the last quarter. Assenagon Asset Management S.A. purchased a new position in shares of PNM Resources in the 1st quarter valued at about $6,365,000. Deutsche Bank AG increased its stake in shares of PNM Resources by 59.9% in the 4th quarter. Deutsche Bank AG now owns 318,993 shares of the utilities provider’s stock valued at $13,106,000 after purchasing an additional 119,512 shares in the last quarter. Finally, JPMorgan Chase & Co. increased its stake in shares of PNM Resources by 26.0% in the 1st quarter. JPMorgan Chase & Co. now owns 501,920 shares of the utilities provider’s stock valued at $23,761,000 after purchasing an additional 103,643 shares in the last quarter. Hedge funds and other institutional investors own 90.15% of the company’s stock.

PNM Resources Company Profile

PNM Resources, Inc, through its subsidiaries, engages in the energy and energy-related businesses in the United States. It operates through Public Service Company of New Mexico (PNM) and Texas-New Mexico Power Company (TNMP) segments. The PNM segment is primarily involved in the generation, transmission, and distribution of electricity.

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