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Entergy Corporation gains UBS upgrade, despite ownership shifts

EditorHari Govind
Published 07/11/2023, 08:04
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UBS upgraded its rating of Entergy Corporation (NYSE:ETR) from Neutral to Buy on Monday, with a one-year price target of $108.52. This suggests a potential upside of 10.53% from the last closing price of $98.18. Despite this positive outlook, there has been a shift in institutional interest and ownership in the company.

Institutional interest in Entergy has seen a slight decrease, with the number of funds holding positions down by 1.14% to 1473 in the last quarter. Total institutional shares also fell by 2.17% to 222,863K shares. Significant changes have occurred among key shareholders.

Capital International Investors, who hold a 4.95% stake in Entergy, decreased its holdings by 4.06% and reduced its portfolio allocation by 18.55%. Bank Of America, with a 2.40% stake, significantly reduced its holdings by 78.38% and its portfolio allocation by 48.30%. Vanguard Total Stock Market Index Fund Investor Shares (3.11% ownership) decreased its portfolio allocation by 15.90%.

However, not all shareholders have reduced their stakes. Vanguard 500 Index Fund Investor Shares (2.38% ownership) increased its holdings by 5.68%, even though it decreased its portfolio allocation by 13.21%. Washington Mutual Investors Fund (2.64% ownership) saw no change in ownership.

This comes as Entergy's projected annual revenue is expected to decrease by 1.45% to $12,511MM, with a non-GAAP EPS of 6.83. The put/call ratio for ETR stands at 1.19, indicating a bearish sentiment.

Entergy is an integrated energy corporation delivering electricity to three million customers across Arkansas, Louisiana, Mississippi, and Texas. The company operates a large-scale clean power generating fleet with approximately 30,000 megawatts capacity, including 8,000 megawatts of nuclear power.

InvestingPro Insights

In light of the recent developments, the InvestingPro platform provides some valuable insights. Entergy Corporation (ETR) is currently operating with a significant debt burden, which is an important factor to consider for potential investors. However, it's worth noting that the company has raised its dividend for 9 consecutive years and has maintained dividend payments for 36 consecutive years, demonstrating a strong track record of rewarding shareholders.

InvestingPro's real-time data further highlights the company's performance. As of Q3 2023, Entergy's P/E ratio stands at 14.07, suggesting that the company is trading at a low earnings multiple. The company also has a market cap of 20.74B USD. In terms of revenue, the company generated 12695.11M USD over the last twelve months as of Q3 2023.

For those interested in more detailed insights and tips, InvestingPro offers a comprehensive analysis of various companies, including Entergy. The platform currently lists six additional tips for Entergy, providing a more in-depth look at the company's financial health and performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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