Eversource Energy EVP sells shares worth over $53,000 By Investing.com

Eversource Energy (NYSE:) Executive Vice President of Customer Experience and Energy Strategy, Penelope M. Conner, has sold a total of 815 shares of the company’s common stock at a price of $65.50 per share, amounting to over $53,000 in total value. The transaction took place on August 13, as reported in a recent filing with the Securities and Exchange Commission.

Following the sale, Conner continues to hold 9,032 shares of Eversource Energy directly, as indicated in the filing with the footnote that these include restricted share units and dividend equivalents. Additionally, the executive holds 648 shares indirectly through the Eversource 401k Plan, according to information provided by the plan’s record keeper.

In the same filing, it was disclosed that Conner also has interests in phantom shares, a form of deferred compensation under the Eversource Deferred Compensation Plan, which are nominally invested as common shares. Each phantom share grants the right to receive one common share upon distribution following vesting, and additional phantom shares are issued upon the automatic reinvestment of dividend-equivalents. The total number of phantom shares held by Conner stands at 15,997.

The transactions were signed off by Kerry J. Tomasevich, attorney-in-fact for Ms. Conner, on August 14, the day after the reported transaction date.

Investors and stakeholders often monitor the buying and selling activities of company insiders as these can provide insights into their perspective on the company’s current valuation and future prospects. However, it should be noted that there can be various reasons for an insider to sell shares, and such transactions do not necessarily indicate their view on the company’s future performance.

In other recent news, Eversource Energy reported solid second-quarter earnings, matching analysts’ expectations with earnings per share (EPS) of $0.95. The company’s management is noted to have adopted a constructive tone during the quarter, with positive political and regulatory changes in Connecticut highlighted as beneficial. Eversource Energy has earmarked $6 billion for transmission investment over the next five years, reflecting its commitment to regulated utility growth.

BMO Capital has increased the company’s stock price target from $69.00 to $73.00, maintaining a Market Perform rating. This adjustment comes in light of Eversource’s recent developments and potential for continued investment growth.

In addition to financial performance, Eversource has completed the sale of the Sunrise Wind Project and anticipates finalizing additional wind project sales in the next quarter. The company’s Massachusetts AMI program, set to commence smart meter installations next year, is also advancing. These developments underscore Eversource’s strategic focus on modernization and environmental goals. Despite challenges in the Water Distribution segment and uncertainties in equity needs, Eversource remains confident in achieving its EPS growth rate through 2028.

InvestingPro Insights

As the market reacts to the insider selling activity at Eversource Energy (NYSE:ES), it’s crucial to consider the company’s financial health and prospects. Eversource Energy currently operates with a significant debt burden, which is reflected in its adjusted market capitalization of $23.84 billion. This financial leverage is a double-edged sword that could affect future profitability and operations.

While the company’s P/E ratio stands at a negative -254.41, indicating that it has not been profitable over the last twelve months, the adjusted P/E ratio for the last twelve months as of Q2 2024 is projected at a more favorable 17.14. This suggests that analysts are expecting profitability improvements in the near term, which is further supported by the InvestingPro Tip that the company’s net income is expected to grow this year. Additionally, Eversource Energy has demonstrated a commitment to shareholders by raising its dividend for 25 consecutive years and maintaining dividend payments for 26 consecutive years, with a current dividend yield of 4.35% as of the latest data.

Investors should also note that Eversource Energy’s shares are trading near their 52-week high, at 96.87% of the peak price, and the company’s stock has experienced a 9.13% year-to-date price total return. These metrics suggest that the stock has been performing well recently, which may influence insider selling decisions. For those interested in exploring further, there are additional InvestingPro Tips available for Eversource Energy, which can be accessed for more in-depth analysis and insights.

With these financial metrics and considerations in mind, stakeholders can better understand the context of insider transactions and assess the investment potential of Eversource Energy. For a comprehensive analysis, including an array of InvestingPro Tips, investors can visit the dedicated InvestingPro page for Eversource Energy at https://www.investing.com/pro/ES.

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