Shares of Sempra Energy (NYSE:SRE) have received a consensus rating of “Moderate Buy” from fourteen analysts covering the stock, according to MarketBeat.com. This outlook includes six analysts assigning a hold rating, seven issuing buy ratings, and one providing a strong buy rating. The average price target among these brokerages stands at $95.83 for the next year.
In recent reports, several firms have commented on Sempra Energy’s stock. On January 22, 2023, UBS Group reaffirmed an “outperform” rating with a target price of $100.00. In contrast, Wall Street Zen upgraded the stock from a “sell” to a “hold” rating on November 8, 2023. Moreover, Citigroup maintained a “neutral” rating but raised its price objective from $80.00 to $99.00 in a report dated November 24, 2023. Morgan Stanley also set a target price of $97.00 while giving the stock an “overweight” rating. Additionally, Jefferies Financial Group issued a target price of $89.00 with a “hold” rating on October 22, 2023.
Strong Earnings Performance
Sempra Energy announced its earnings results on November 5, 2023, reporting earnings per share (EPS) of $1.11 for the quarter. This figure surpassed the consensus estimate of $0.84 by $0.27. The company achieved a net margin of 15.63% and a return on equity of 8.67%. Revenue for the quarter reached $3.15 billion, exceeding analyst expectations of $2.99 billion. This performance marks a year-over-year revenue increase of 13.5%, compared to $0.89 EPS during the same period last year. Analysts project that Sempra Energy will post an EPS of $4.76 for the current fiscal year.
Insider trading activity has also attracted attention. On November 19, 2023, Dyan Z. Wold, Chief Accounting Officer, sold 1,510 shares at an average price of $91.38, totaling approximately $137,983.80. This sale reduced her ownership by 30.25%. Subsequently, Chief Financial Officer Karen L. Sedgwick sold 7,564 shares on November 24, 2023, at an average price of $92.29, amounting to around $698,081.56. After this transaction, Sedgwick retained 41,280 shares valued at approximately $3.81 million, reflecting a 15.49% decrease in her holdings. Over the last three months, insiders have sold a total of 15,074 shares, valued at $1.39 million, with insiders currently holding 0.27% of the company’s stock.
Institutional Investment Trends
Several institutional investors have recently adjusted their stakes in Sempra Energy. Westerkirk Capital Inc. acquired a new position during the second quarter, investing $3.09 million. Amundi increased its holdings by 20.8% in the same period, now owning 1,903,624 shares valued at $142.43 million after adding 327,154 shares. Mirae Asset Global Investments Co. Ltd. boosted its stake by 19.4% in the third quarter, holding 85,334 shares worth $7.68 million after acquiring an additional 13,864 shares. Similarly, GW Henssler & Associates Ltd. grew its position by 3.3% during the second quarter, now owning 353,620 shares valued at $26.79 million. Lastly, North Star Asset Management Inc. purchased a new stake during the second quarter worth approximately $212,000. Institutional investors currently hold 89.65% of Sempra Energy’s stock.
Sempra Energy operates from its headquarters in San Diego, California, focusing on energy infrastructure. The company develops, owns, and manages businesses that deliver electricity and natural gas, encompassing regulated utility services and non-regulated infrastructure projects. Its diverse portfolio includes electricity and natural gas transmission, storage, liquefied natural gas (LNG) facilities, and power generation projects.
