Morgan Stanley maintains equal-weight recommendation on Eversource Energy amidst declining institutional interest
On Thursday, Morgan Stanley maintained its Equal-Weight recommendation for Eversource Energy (NYSE:ES), a utility company that serves approximately 4.3 million customers across Connecticut, Massachusetts, and New Hampshire. As of August 31, 2023, the average one-year price target for Eversource Energy was set at $81.67, suggesting a potential upside of 27.69% from its most recent closing price of $63.96. The price forecasts range from a low of $67.67 to a high of $105.00.
However, Eversource Energy's annual revenue is projected to decrease by 8.55% to reach $11,587MM, with a non-GAAP EPS expected to be $4.50. In recent months, there has been a shift in investment sentiment towards the company, with a reduction in the number of funds and institutions holding positions.
From the last quarter, there has been a decrease of 78 owners or a drop of 4.93%, bringing the total to 1505 funds or institutions. The average portfolio weight dedicated to ES also decreased by 7.33% to 0.24%. Over the past three months, institutional ownership declined by 3.83% to 304,199K shares.
The put/call ratio of ES stands at 2.43, indicating a bearish outlook for the company's stock.
Despite this trend, several prominent investors have maintained or increased their stakes in Eversource Energy. Vanguard Total Stock Market Index Fund Investor Shares holds a stake of 10,872K shares or 3.11% ownership in the company—an increase of 0.79% from its previous filing—though its portfolio allocation in ES decreased by 15.72% over the last quarter.
Similarly, Vanguard 500 Index Fund Investor Shares owns an equity interest of 8,306K shares or 2.38% ownership in the company—an increase of 2.15% from its prior filing—with a decrease of 16.12% in its portfolio allocation in ES over the last quarter.
Vanguard Mid-Cap Index Fund Investor Shares holds 8,086K shares, or 2.32% ownership of the company, showing a decrease of 0.67% from its previous filing, with a decrease in portfolio allocation in ES by 13.58% over the last quarter.
Wells Fargo holds 7,864K shares or 2.25% ownership in the company, marking an increase of 1.63% from its previous filing. Contrarily, it increased its portfolio allocation in ES by a significant 163.35% over the last quarter.
Geode Capital Management maintains a stake of 7,795K shares or 2.23% ownership in the company, representing an increase of 3.16% from its prior filing. However, this firm also decreased its portfolio allocation in ES by 15.34% over the last quarter.
Eversource Energy has been recognized as the top U.S. utility for its energy efficiency programs by sustainability advocacy organization Ceres.
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