Let’s take a look at how institutional investors have interacted with the utility stocks under review in this series recently.
According to a recent 13F filing, institutions held almost 80% of NextEra Energy’s (NEE) total outstanding shares as of December 31. The Vanguard Group was the biggest institutional investor in the renewables giant (NEE) at the end of the fourth quarter. It held almost 9% in—or 42.6 million shares of—NEE.
Higher institutional holdings in a stock imply a higher confidence level or sentiment held by sophisticated market participants. Usually, with all else being equal, rising institutional holdings indicate favorable opinions about a stock.
Institutional investors held ~95% of the total outstanding shares of CMS Energy (CMS) at the end of the fourth quarter. With more than a 12% stake in the utility, the Vanguard Group was the biggest institutional investor of CMS.
In NiSource’s (NI) case, institutions owned more than 95% of the natural gas utility at the end of the fourth quarter. T. Rowe Price Group held more than 16.5% of NiSource’s total outstanding shares at the end of the quarter.
Read Institutional Activity in Top Utility Stocks for more information.