Look At Analyst Expectations For A Better Read On Sempra Energy (NYSE: SRE)


The Vanguard Group, Inc. recently announced the acquisition of new stake in Sempra Energy (NYSE:SRE). The institutional investor has increased its shareholding in the Utilities company by 3.10% to 24.19 million shares with purchase of 0.73 million shares. This fresh investment now brings its stake to 8.27% valued currently at $3.01 billion. In addition, Capital Research & Management Co.. raised its holdings by 1.33 million to 18.18 million shares. And Wellington Management Co. LLP has lifted its position by 19.98% or 1.8 million shares – to 10.78 million shares.

With over 1.01 million Sempra Energy (SRE) shares trading Tuesday and a closing price of $125.51 on the day, the dollar volume was approximately $126.48 million. The shares have shown a negative weekly performance of -2.98% and its price on 08/25/20 lost nearly -1.46%. Currently, there are 293.06M common shares owned by the public and among those 288.91M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 17 analysts who have offered their price forecasts for SRE have a consensus price objective of $146.38. The analysts have set the share’s price value over the next 12 months at a high of $184.00 and a low of $137.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Sempra Energy stock is 2.20 for the next 12 months. The average price target is 14.03% above its last price level and an upside to the estimated low will see the stock gain 8.39% over that period. But an upside of 31.79% will see the stock hit the forecast high price target while mean target price for the stock is $143.50.

Insiders at the company have transacted a total of 57 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 26 of these insider trades were purchases, accounting for 68,858 shares. Insider sales of the common stock occurred on 31 occasions, with total insider shares sold totaling 92,955 shares.

The top 3 mutual fund holders in Sempra Energy are Vanguard Total Stock Market Index, Washington Mutual Investors Fund, and Vanguard 500 Index Fund. Vanguard Total Stock Market Index owns 8.31 million shares of the company’s stock, all valued at over $1.03 billion. The company sold 16876.0 shares recently to bring their total holdings to about 2.84% of the shares outstanding. Washington Mutual Investors Fund bought 0.38 million shares to see its total holdings expand to 6.67 million shares valued at over $829.79 million and representing 2.28% of the shares outstanding. Vanguard 500 Index Fund sold 36217.0 shares to bring its total holdings to over 6.03 million shares at a value of $750.84 million. Vanguard 500 Index Fund now owns shares totaling to 2.06% of the shares outstanding.

Shares of Sempra Energy (NYSE: SRE) opened at $128.09, up $0.72 from a prior closing price of $127.37. However, the script later closed the day at $125.51, down -1.46%. The company’s stock has a 5-day price change of -2.98% and 0.49% over the past three months. SRE shares are trading -17.14% year to date (YTD), with the 12-month market performance down to -11.48% lower. It has a 12-month low price of $88.00 and touched a high of $161.87 over the same period. Currently, 1.01 million shares have been traded, compared to an average intraday trading volume of 1.79 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -2.09%, 1.20%, and -6.22% respectively.

Institutional ownership of Sempra Energy (NYSE: SRE) shares accounts for 89.20% of the company’s 293.06M shares outstanding. Mutual fund holders own 34.29%, while other institutional holders and individual stakeholders account for 53.73% and 0.56% respectively.

It has a market capitalization of $36.52B and a beta (3y monthly) value of 0.72. The stock’s trailing 12-month PE ratio is 18.13, while the earnings-per-share (ttm) stands at $6.92. The company has a PEG of 2.89 and a Quick Ratio of 0.80 with the debt-to-equity ratio at 1.27. Price movements for the stock have been influenced by the stock’s volatility, which stands at 1.89% over the week and 2.03% over the month.

Analysts forecast that Sempra Energy (SRE) will achieve an EPS of $1.48 for the current quarter, $1.51 for the next quarter and $8 for 2021. The lowest estimate earnings-per-share for the quarter is $0.85 while analysts give the company a high EPS estimate of $1.98. Comparatively, EPS for the current quarter was $1.5 a year ago. Earnings per share for the fiscal year are expected to increase by 120.00%, and 6.02% over the next financial year. EPS should grow at an annualized rate of 6.27% over the next five years, compared to 5.30% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 17 brokerage firm advisors rate Sempra Energy (SRE) as a “Moderate Buy” at a consensus score of 2.20. Specifically, 11 Wall Street analysts polled rate the stock as a buy, while 6 of the 17 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the SRE, a number of firms have released research notes about the stock. Wells Fargo stated their Equal Weight rating for the stock in a research note on August 17, 2020, with the firm’s price target at $145. KeyBanc Capital Markets coverage for the Sempra Energy (SRE) stock in a research note released on July 21, 2020 offered a Overweight rating with a price target of $141. Seaport Global Securities was of a view on June 15, 2020 that the stock is Buy, while BofA/Merrill gave the stock Buy rating on June 12, 2020, issuing a price target of. KeyBanc Capital Markets on their part issued Sector Weight rating on March 13, 2020.


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