Investors following Public Service Enterprise Group Inc. (NYSE:PEG) should note a recent transaction by a top executive at the company. Tamara Linde (NYSE:LIN), the Executive Vice President and Chief Legal Officer, sold a total of 9,564 shares of common stock at a price of $90.61, amounting to a total value of $866,594.
The sale took place on October 9, 2024, as indicated in the latest regulatory filings. Following the transaction, Linde now directly owns 48,397.435 shares in the company. The sale represents a significant transaction by a key insider, providing current and potential investors with insight into executive sentiment regarding the firm's stock value.
Public Service Enterprise Group, based in Newark, New Jersey, operates in the utilities sector, focusing on electric and other services. With this recent transaction, stakeholders may be keen to monitor any further insider trading activities and the company's performance as part of their investment decision-making process.
The stock ticker for Public Service Enterprise Group is listed on the New York Stock Exchange under the symbol NYSE:PEG.
In other recent news, Public Service Electric & Gas Co. (PSE&G) has secured its first rate hike since 2018, approved by the New Jersey Board of Public Utilities. The increase, set at approximately one percent annually, is expected to raise the typical combined residential electric and gas customer bill by 7%. This adjustment is a response to the capital investments PSE&G has made over the past six years to enhance the distribution system and cover increasing operational costs.
In the realm of analyst upgrades and downgrades, BofA Securities raised its price target for PSE&G from $88 to $97, maintaining a Buy rating. Evercore ISI also raised its target to $95, while Ladenburg Thalmann upgraded the stock to 'Buy', increasing their 2026 and 2027 earnings per share estimates for PSE&G to $4.55 and $4.82, respectively.
PSE&G reported decreased earnings for the second quarter of 2024, with earnings falling to $0.87 per share from $1.18 per share in the same quarter of the previous year. Despite the decrease, PSE&G maintains its full-year expectations, anticipating an increase in gross margin in the fourth quarter.
Lastly, PSE&G is expanding its involvement in data centers and clean energy initiatives in New Jersey. These ventures have the potential to lead to further capacity expansion, particularly in nuclear power. The company plans to update its capital plan by the end of the year or the beginning of the next year, with confidence in meeting its long-term compound annual growth forecast.
InvestingPro Insights
To provide additional context to the recent insider sale by Tamara Linde, it's worth examining some key financial metrics and insights from InvestingPro for Public Service Enterprise Group (NYSE:PEG).
As of the latest data, PEG's market capitalization stands at $44.23 billion, reflecting its significant presence in the utilities sector. The company's P/E ratio of 26.77 suggests that investors are willing to pay a premium for PEG's earnings, which could be attributed to its stable business model and consistent dividend payments.
Speaking of dividends, one of the InvestingPro Tips highlights that PEG "has maintained dividend payments for 54 consecutive years." This remarkable track record of dividend consistency aligns well with the company's position as a utility stock, often favored by income-seeking investors. The current dividend yield is 2.67%, which may be attractive in the current market environment.
Another relevant InvestingPro Tip notes that the stock is "trading near 52-week high" and has shown a "strong return over the last three months." In fact, PEG's stock has delivered an impressive 57.75% total return over the past year, significantly outperforming many of its peers in the utilities sector. This strong performance might provide some context for the insider sale, as executives sometimes liquidate portions of their holdings after periods of substantial price appreciation.
It's worth noting that InvestingPro offers 11 additional tips for PEG, providing a more comprehensive analysis for investors interested in delving deeper into the company's prospects.
While the insider sale by Tamara Linde is noteworthy, it's essential to consider it within the broader context of PEG's financial health and market performance. The company's consistent dividend history and recent stock price strength suggest that despite the sale, there may still be confidence in PEG's long-term prospects.
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