WEC Energy Group (NYSE:WEC) Shares Gap Down Following Weak Earnings

WEC Energy Group, Inc. (NYSE:WEC)’s share price gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $100.45, but opened at $97.52. WEC Energy Group shares last traded at $98.52, with a volume of 311,181 shares traded.

The utilities provider reported $1.43 EPS for the quarter, missing the consensus estimate of $1.49 by ($0.06). The firm had revenue of $2.28 billion for the quarter, compared to analyst estimates of $2.50 billion. WEC Energy Group had a net margin of 15.14% and a return on equity of 11.72%. The firm’s quarterly revenue was up 3.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.10 EPS.

WEC Energy Group Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Saturday, March 1st. Shareholders of record on Friday, February 14th will be given a dividend of $0.835 per share. The ex-dividend date is Friday, February 14th. This represents a $3.34 dividend on an annualized basis and a yield of 3.36%. WEC Energy Group’s dividend payout ratio is currently 81.66%.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on WEC. StockNews.com raised WEC Energy Group from a “sell” rating to a “hold” rating in a research note on Friday, November 1st. Wells Fargo & Company increased their price objective on shares of WEC Energy Group from $103.00 to $106.00 and gave the company an “overweight” rating in a report on Wednesday, October 16th. KeyCorp boosted their target price on shares of WEC Energy Group from $108.00 to $109.00 and gave the stock an “overweight” rating in a research note on Wednesday, December 4th. Bank of America upgraded shares of WEC Energy Group from an “underperform” rating to a “neutral” rating and upped their price target for the stock from $90.00 to $98.00 in a research report on Thursday, December 12th. Finally, Scotiabank lifted their price objective on WEC Energy Group from $103.00 to $110.00 and gave the stock a “sector outperform” rating in a report on Monday, December 9th. Seven research analysts have rated the stock with a hold rating and three have assigned a buy rating to the stock. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $100.00.

Insider Activity

In other WEC Energy Group news, Director Gale E. Klappa sold 40,269 shares of the business’s stock in a transaction dated Thursday, November 21st. The shares were sold at an average price of $99.56, for a total value of $4,009,181.64. Following the transaction, the director now directly owns 273,248 shares in the company, valued at $27,204,570.88. The trade was a 12.84 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Scott J. Lauber sold 6,720 shares of the firm’s stock in a transaction that occurred on Thursday, November 21st. The stock was sold at an average price of $100.89, for a total transaction of $677,980.80. Following the sale, the chief executive officer now owns 45,709 shares of the company’s stock, valued at $4,611,581.01. This represents a 12.82 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 48,794 shares of company stock worth $4,866,579 over the last ninety days. Corporate insiders own 0.44% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Coastline Trust Co acquired a new position in shares of WEC Energy Group in the 3rd quarter valued at $29,000. Ashton Thomas Securities LLC acquired a new position in WEC Energy Group in the third quarter valued at about $45,000. Friedenthal Financial purchased a new position in WEC Energy Group during the third quarter worth about $50,000. Human Investing LLC acquired a new stake in shares of WEC Energy Group during the fourth quarter valued at about $52,000. Finally, Bank of Jackson Hole Trust purchased a new stake in shares of WEC Energy Group in the 4th quarter valued at approximately $59,000. 77.20% of the stock is currently owned by hedge funds and other institutional investors.

WEC Energy Group Stock Performance

The company has a current ratio of 0.65, a quick ratio of 0.46 and a debt-to-equity ratio of 1.37. The stock has a market capitalization of $31.41 billion, a price-to-earnings ratio of 24.28, a price-to-earnings-growth ratio of 2.50 and a beta of 0.49. The firm’s fifty day moving average price is $96.67 and its 200 day moving average price is $94.77.

WEC Energy Group Company Profile

WEC Energy Group, Inc, through its subsidiaries, provides regulated natural gas and electricity, and renewable and nonregulated renewable energy services in the United States. It operates through Wisconsin, Illinois, Other States, Electric Transmission, and Non-Utility Energy Infrastructure segments.