XLU: Recent Changes in Its Institutional Ownership
According to a recent filing, Goldman Sachs & Company, XLU’s top institutional investor, added 3 million shares of XLU—compared to the last quarter.
Currently, the Utilities Select Sector SPDR ETF (XLU) is trading at a 3% and 7% premium to its 50-day and 200-day simple moving averages
Despite the towering valuations, US utility stocks continued to rise last week. The Utilities Select Sector SPDR ETF (XLU) hit a fresh high of $54.76.
Recently, NextEra Energy’s solid earnings growth was reflected in its market performance. NextEra Energy stock has outperformed broader utilities.
NextEra Energy has increased its per share dividends for the last 11 consecutive years. Its relatively lower payout ratio at 55% might concern investors.
NextEra Energy (NEE), the largest component of the S&P 500 Utilities Index (XLU), had one of the highest dividend growths in recent years.
NextEra Energy declared a dividend of $0.98 per share on July 28, 2017. It has an ex-dividend date of August 23, which will be paid on September 15, 2017.
According to Wall Street analysts’ consensus, NextEra Energy has a price target of $153.86 compared to its current market price of $149.98.
According to a recent filing, the Vanguard Group holds the largest chunk of NextEra Energy’s free floating shares among other institutional investors.
NextEra Energy (NEE) stock has risen more than 20% in the past year. It still looks strong going forward considering its simple moving average levels.
NextEra Energy (NEE) stock still appears to be trading at a significant premium compared to its peers and even to its historical average.
NextEra Energy (NEE) stock hit a fresh 52-week high of $150.18 on August 16, 2017. So far, NextEra Energy stock has gained more than 25% this year.
Duke Energy’s (DUK) dividend growth rate in the last five years was well below the industry average.
Among the top five institutional investors, BlackRock Institutional Trust was the only one that reduced its holdings in SO.
According to Wall Street analyst estimates, Southern Company (SO) has a price target of $50.94 against its current market price of $48.96.
Southern Company (SO) continues to trade below its simple moving averages, which underlines the weakness in the stock.
Southern Company (SO), which has the highest dividend yield in XLU, has significantly underperformed its peers and the broader markets in terms of total returns.
Uncertainty at Southern Company’s (SO) Plant Vogtle escalated after the company increased its cost estimate for the project in its 2Q17 earnings.
The markets last week were weak due to geopolitical tensions between the United States and North Korea. Utilities fell 0.40%.
According to the analyst consensus, NRG Energy (NRG), the smallest constituent in the S&P 500 Utilities Index (XLU), seems to be offering an alluring estimated upside of 18.0%.