The Vanguard Group is the largest institutional investor in renewables titan NextEra Energy (NEE). It added net ~0.7 million shares of NEE to its existing holdings in the second quarter.
According to its latest filing, Vanguard Group held 8.6% of NEE’s total outstanding shares on June 30. In the first quarter, Vanguard held an 8.4% stake with 39.7 million total shares.
Institutional activity in NEE
Florida-based NextEra Energy (NEE), the largest utility by market capitalization, is one of the top gainers among the broader utilities (XLU)(IDU) this year. Its better-than-expected earnings have driven its stock in the last few years.
State Street Global Advisors, the second-largest investor in NEE, marginally lowered its stake in the utility in the second quarter. On June 30, it held 4.8% of its total outstanding shares in NEE with ~22.8 million shares.
Wellington Management sold net 340,000 shares of NextEra Energy in the second quarter. It held 3.7%, or 17.3 million shares, in NEE on June 30.
BlackRock Institutional Trust sold more than 1.6 million shares of NextEra Energy stock in the second quarter, which decreased its stake to 4.8% in the renewables giant. In the first quarter, it held a 5.1% stake in NEE.
Among the top buyers, Managed Account Advisors added net 2.4 million shares of NEE during the second quarter. It held a 1.5% stake in NEE on June 30.
Conservative investors might not like NextEra Energy because of its 2.7% dividend yield, the lowest among the top utilities (IDU). NextEra Energy is the largest component of the Utilities SPDR ETF (XLU. However, the double-digit annual dividend growth and strong growth prospects offset the concerns.