Entergy Corp (NYSE:ETR) CEO Marsh Andrew S conducted a series of stock transactions on August 26, 2024, as reported in a recent SEC filing. The executive sold 1,000 shares of the company’s common stock at an average price range of $120.00 to $120.09, culminating in a total sale value of over $120,000.
According to the details provided in the SEC filing, the transactions were carried out under a pre-arranged trading plan, known as a Rule 10b5-1 plan, which was adopted on May 6, 2024. This type of plan allows company insiders to sell shares over a predetermined period of time, in order to avoid accusations of trading on non-public, material information.
The SEC filing also indicated that the shares sold were part of multiple transactions at varying prices within the specified range. Marsh Andrew S’s remaining holdings in Entergy Corp following the sale are 150,731 shares of common stock, directly owned, and an additional 1,147 shares indirectly owned through a 401(k) plan.
The filing did not report any additional purchases of common stock by the CEO on that date. However, the same filing did disclose that on the same day, Marsh Andrew S exercised options to acquire 1,000 shares of common stock at a price of $89.90 per share, amounting to a total transaction value of $89,900. Post-transaction, the executive directly owns 19,800 shares in the form of Employee Stock Options (Right to Buy).
Entergy Corp, headquartered in New Orleans, Louisiana, is a major provider of electric services. This recent trading activity by the company’s Chair and CEO is a routine disclosure required by SEC regulations and provides investors with insight into the executive’s transactions in the company’s stock.
In other recent news, Entergy Corporation (NYSE:ETR) reported strong second-quarter earnings with an operating earnings per share (EPS) of $1.92, surpassing estimates from BMO Capital and consensus. This significant earnings beat led BMO Capital to raise its price target for Entergy from $124 to $131, maintaining an 'Outperform' rating. Evercore ISI also increased its price target for the utility company to $120, citing potential industrial opportunities and the extension of the Louisiana formula rate plan as drivers of this outlook.
Entergy confirmed its adjusted EPS guidance for 2024, demonstrating a positive financial trajectory. The company also reported a robust net liquidity of $5.9 billion. Evercore ISI noted that storms present a risk to Entergy's operational and financial stability, but acknowledged that regulation has historically been supportive of storm cost recovery for the company.
In terms of infrastructure projects, Entergy is seeking approval for new generation resources in Texas and progressing with a gas local distribution company sale in Louisiana. The company is also expanding its renewable energy portfolio, with a large request for proposal for renewable projects in Louisiana expected in the fall. These are among the recent developments for Entergy Corporation.
InvestingPro Insights
Entergy Corp (NYSE:ETR) has shown a robust financial performance in recent times, as evidenced by key metrics from InvestingPro. The company boasts a market capitalization of $25.45 billion, reflecting its significant presence in the utilities sector. With a P/E ratio of 14.22, Entergy is trading at a valuation that seems reasonable when compared to its near-term earnings growth potential. Moreover, the adjusted P/E ratio for the last twelve months as of Q2 2024 stands at an even more attractive 11.48.
Investors may also find the company's dividend track record appealing. One of the InvestingPro Tips highlights that Entergy has raised its dividend for 9 consecutive years, demonstrating a commitment to returning value to shareholders. Additionally, the dividend yield as of the date provided is 3.78%, which is competitive in today's market, coupled with a dividend growth of 5.61% over the last twelve months leading up to Q2 2024.
It is noteworthy that despite analysts revising their earnings expectations downwards for the upcoming period, Entergy has maintained dividend payments for an impressive 37 consecutive years. This tip, along with the fact that the stock generally trades with low price volatility, might reassure investors looking for stability in their portfolio.
For those seeking further insights, InvestingPro offers additional tips on Entergy Corp, which can be accessed at https://www.investing.com/pro/ETR. These tips provide deeper analysis and can be a valuable resource for investors considering Entergy Corp as part of their investment strategy.
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