Wall Street Zen has downgraded shares of NiSource Inc. (NYSE:NI) from a hold rating to a sell rating, according to a research report published on October 30, 2023. This adjustment follows a series of mixed evaluations from various research firms, reflecting a diverse outlook on the utility provider’s stock.
In contrast to Wall Street Zen’s bearish stance, several other financial institutions have expressed more optimistic views on NiSource. On October 31, 2023, Jefferies Financial Group upgraded the stock from a hold to a buy rating, increasing its price target from $46.00 to $50.00. Likewise, BMO Capital Markets raised its price objective from $46.00 to $47.00, granting the stock an outperform rating on September 29, 2023. Barclays also raised its target for NiSource from $44.00 to $46.00, rating the stock overweight in a report released on October 21, 2023.
Mizuho recently increased its target price from $44.00 to $50.00 while maintaining an outperform rating. Additionally, Evercore ISI adjusted its price target from $46.00 to $47.00 and assigned an in-line rating to the company. Currently, one equity research analyst has issued a strong buy rating, while eight analysts have given a buy rating and two have assigned a hold rating, resulting in an average rating of moderate buy and a consensus price target of $46.44, according to MarketBeat.com.
Recent Financial Performance
NiSource recently announced its quarterly earnings results on October 29, 2023. The utilities provider reported earnings per share (EPS) of $0.19, falling short of the consensus estimate of $0.20 by $0.01. The firm generated revenue of $1.27 billion, significantly surpassing analyst expectations of $983.25 million. The company reported a return on equity of 8.09% and a net margin of 14.15%. In the same quarter of the previous year, NiSource had an EPS of $0.20.
Looking ahead, NiSource has provided guidance for fiscal year 2025, projecting EPS between $1.870 and $1.89, and for fiscal year 2026, it anticipates EPS between $2.020 and $2.07. Analysts expect the company to post an EPS of $1.91 for the current fiscal year.
Insider Activity and Institutional Involvement
In related news, NiSource’s Executive Vice President, Kimberly S. Cuccia, sold 8,000 shares of the company’s stock on November 25, 2023, at an average price of $43.13. The total transaction was valued at $345,040. Following this sale, Cuccia retained ownership of 41,247 shares, worth approximately $1,778,983.11, representing a 16.24% decrease in her ownership stake. This transaction was formally disclosed in a filing with the U.S. Securities and Exchange Commission (SEC).
Several large investors have also made significant changes to their positions in NiSource. Orion Portfolio Solutions LLC dramatically increased its stake by 55,625.2% during the second quarter, acquiring 16,866,898 shares valued at approximately $680,411,000. Norges Bank recently entered the picture, acquiring a new stake valued at about $296,543,000 during the same quarter.
Vanguard Group Inc. raised its holdings by 5.3% in the first quarter, bringing its total ownership to 60,844,001 shares, valued at $2,439,236,000. Millennium Management LLC also expanded its investment significantly, increasing its stake by 2,288.8% in the third quarter to own 3,166,313 shares valued at $137,101,000. Institutional investors and hedge funds now hold 91.64% of NiSource’s stock.
NiSource Inc., based in the United States, operates as a regulated natural gas and electric utility company. It serves approximately 3.3 million customers through a network of 55,000 miles of distribution pipelines and 1,000 miles of transmission pipelines across states including Indiana, Ohio, Pennsylvania, Virginia, Kentucky, and Maryland.
