Strs Ohio, a prominent investment firm, has recently made headlines by lowering its stake in MGE Energy, Inc. The securities and exchange commission (SEC) filing reveals that Strs Ohio reduced its holdings in the utility provider’s stock by a staggering 34.2% during the first quarter of this year. This move saw the firm selling off 5,000 shares, leaving them with 9,600 remaining. At the end of the reporting period, these shares were valued at an impressive $745,000.
MGE Energy, traded on the NASDAQ under the ticker symbol MGEE, is no stranger to attention surrounding its financial performance. Its most recent quarterly earnings report was released on May 4th and surprised analysts with mixed results. While revenue for the quarter came in at $217.25 million – slightly exceeding estimates – earnings per share fell short of expectations.
The reported earnings per share for this period was $0.86, missing consensus estimates by $0.21 or approximately 20%. This figure caused some concern among investors and industry experts who were not anticipating such a sizable deviation from projections. Nonetheless, it is important to note that MGE Energy maintains a healthy net margin of 14.89% and a respectable return on equity of 9.98%.
As a public utility holding company primarily operating in Wisconsin, MGE Energy focuses on regulated electric and gas utility operations as well as nonregulated energy operations. In addition to its core business segments, the company also invests in transmission projects and provides other miscellaneous services under its “All Other” division.
With a commitment to generating, purchasing, and distributing electricity and natural gas primarily in Wisconsin and Iowa, MGE Energy plays a significant role in ensuring residents have reliable access to power resources in these regions. Furthermore, the company leverages its expertise to plan, construct, operate, maintain and expand transmission facilities for enhanced transmission services.
While the recent reduction in holdings by Strs Ohio may have raised eyebrows among investors, it is crucial to remember that fluctuations in stock ownership are common in the financial market. Despite this adjustment, analysts forecast that MGE Energy will bounce back and post an EPS (earnings per share) of 3.32 for the current fiscal year.
As we move through July 2023, both Strs Ohio and industry experts will monitor MGE Energy closely to track its progress and assess any potential growth opportunities. It remains to be seen whether future earnings reports will paint a more favorable picture for this utility provider as they navigate the ever-evolving energy landscape.
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Changes in Hedge Fund Positions: MGE Energy, Inc. Sees Increased Interest and Confidence
[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”MGEE” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]MGE Energy, Inc., a public utility holding company based in Wisconsin, has recently been subject to changes in its positions by various hedge funds. One of these hedge funds is New Hampshire Trust, which acquired a new stake in MGE Energy during the fourth quarter of the financial year 2022-2023. The value of this stake amounts to approximately $27,000.
In addition to New Hampshire Trust, Heritage Wealth Management LLC also made changes to its holdings in MGE Energy during the same period. This wealth management firm increased its holdings by 100%, now owning 400 shares of the utilities provider’s stock with a total worth of $28,000 after purchasing an additional 200 shares in the last quarter.
Another significant change came from Lindbrook Capital LLC, who lifted its holdings in MGE Energy by an astounding 1,000% during the fourth quarter. The capital firm now owns 407 shares of MGE Energy’s stock valued at $29,000 after acquiring an additional 370 shares in the last quarter.
Similarly, Mendota Financial Group LLC demonstrated a notable increase in its holdings for MGE Energy during the first quarter of this year. With an increase of 84.2%, Mendota Financial Group now possesses 630 shares of MGE Energy’s stock amounting to $50,000 after purchasing an additional 288 shares.
Finally, Money Concepts Capital Corp entered the scene during the fourth quarter and acquired a new stake in MGE energy estimated to be around $48,000. Combined with other hedge funds and institutional investors, they currently own approximately 51.59% percent of the company’s stock.
On Monday morning’s opening bell trading session on July 24th, MGE Energy stocks were priced at $82.11 per share. Over a twelve-month period between July 2022 and July 2023, these stocks reached their peak at $86.27 and their minimum at $61.67, showcasing fluctuations in value within the market.
As of the July 24th, 2023 market data, MGE Energy’s fifty-day simple moving average stands at $77.01, with its 200-day simple moving average at $75.13. The company currently holds a market capitalization of $2.97 billion and operates under a price-to-earnings ratio of 27.65 and a PEG ratio of 4.56, which indicates potential overvaluation relative to its earnings growth prospects. With a beta coefficient measured at 0.74, it is considered to be less volatile compared to the overall market.
The company operates through several key segments: Regulated Electric Utility Operations; Regulated Gas Utility Operations; Nonregulated Energy Operations; Transmission Investments; and All Other segments. These segments are responsible for generating, purchasing, distributing electricity and natural gas in Wisconsin and Iowa while also managing transmission services and expanding related infrastructure.
Furthermore, MGE Energy recently disclosed information regarding its quarterly dividend payments to stockholders. On June 15th, the company issued a dividend payment of $0.4075 per share to stockholders of record as of June 1st. This translates into an annualized dividend payout of $1.63 per share and provides a dividend yield of approximately 1.99%, denoting the percentage return on investment based on dividend payments alone.
Comparison to previous quarters reveals that this new quarterly dividend reflects an increase from MGE Energy’s previous offering of $0.41 per share paid out to shareholders before May 31st.
Equities research analysts have also been closely monitoring MGE Energy’s performance in the market and have compiled reports accordingly. For instance, Morgan Stanley recently reduced their target price for MGE Energy from $68 to $67 per share while rating it as “underweight,” suggesting caution towards investing in this stock due to perceived risks or concerns.
Additionally, StockNews.com began coverage on MGE Energy’s shares on May 18th and currently maintains a “hold” rating, indicating a neutral stance on the company’s stock in terms of investment recommendations.
In conclusion, MGE Energy, Inc. has garnered attention from various hedge funds and institutional investors, displaying changes in their holdings that reflect their confidence and interest in this utility holding company. With specific focus on its regulated electric and gas utility operations, nonregulated energy operations, transmission investments, and other segments, MGE Energy continues to navigate the market as a public utility provider in Wisconsin. As always, investors should exercise due diligence and consult with financial professionals before making any investment decisions in this volatile sector.
