NextEra Energy (NEE) has rallied the most among its peer stocks this year. The Vanguard Group is the largest institutional investor in the renewables titan. It added net ~0.8 million shares of NEE to its existing holdings in the third quarter. According to its latest filing, Vanguard Group held 41.2 million or 8.6% of NEE’s total outstanding shares on September 30. In the second quarter, Vanguard held 40.4 million total NEE shares.
Institutional activity in NEE
State Street Global Advisors, the second-largest investor in NEE, increased its stake in the utility during the third quarter. On September 30, it held 4.8% of its total outstanding shares with ~23.04 million shares. Wellington Management sold net 200,000 shares of NextEra Energy in the third quarter. It held 3.6%, or 17.1 million shares, in NEE on September 30.
J.P. Morgan Asset Management added 1.1 million shares and raised its entire stake in the utility to 2.3%.
NextEra Energy has been reporting strong quarterly earnings growth over the last several quarters, which has been contributing to its market performance. It’s expected to grow its EPS ~7% per year going forward, making it one of the fastest-growing utilities (XLU). NextEra Energy’s strong market performance and superior dividend growth have outperformed peers over the last several years in terms of total returns. See These S&P 500 Utilities Have Delivered the Best Five-Year Returns.