BofA/Merrill Downgrade NiSource Inc. [NI]. What else is Wall St. saying?

NiSource Inc. [NYSE: NI] gained 0.77% on the last trading session, reaching $22.35 price per share at the time. The company report on August 26, 2020 that NiSource Inc. Announces Pricing of its Maximum Tender Offer.

NiSource Inc. (“NiSource”) announced today the pricing terms of its previously announced cash tender offer (the “Maximum Tender Offer”) for up to $150,000,000 aggregate maximum repurchase amount (the “Aggregate Maximum Repurchase Amount”) of its outstanding 6.25% Notes due 2040, 5.95% Notes due 2041, 5.80% Notes due 2042, 5.65% Notes due 2045 and 5.25% Notes due 2043 (the “Maximum Tender Offer Notes”). The terms and conditions of the Maximum Tender Offer are described in the Offer to Purchase, dated August 12, 2020 (the “Offer to Purchase”).

As of 5:00 p.m., New York City time, on August 25, 2020 (the “Early Tender Date”), as reported by D.F. King & Co., Inc., the tender and information agent for the Maximum Tender Offer, the principal amounts of the Maximum Tender Offer Notes listed in the table below had been validly tendered and not validly withdrawn. The following table sets out, among other things, the applicable Total Consideration for each $1,000 principal amount of Maximum Tender Offer Notes accepted for purchase:.

NiSource Inc. represents 383.50 million in outstanding shares, while the company has a total market value of $8.50 billion with the latest information. NI stock price has been found in the range of $21.86 to $22.39.

If compared to the average trading volume of 2.95M shares, NI reached a trading volume of 2719614 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about NiSource Inc. [NI]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for NI shares is $26.25 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on NI stock is a recommendation set at 2.10. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

BofA/Merrill have made an estimate for NiSource Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on April 30, 2020. The new note on the price target was released on April 24, 2020, representing the official price target for NiSource Inc. stock. Previously, the target price had yet another raise to $28, while Jefferies analysts kept a Buy rating on NI stock.

The Average True Range (ATR) for NiSource Inc. is set at 0.55, with the Price to Sales ratio for NI stock in the period of the last 12 months amounting to 1.73. The Price to Book ratio for the last quarter was 1.79, with the Price to Cash per share for the same quarter was set at 0.37. Price to Free Cash Flow for NI in the course of the last twelve months was 9.13 with Quick ratio for the last quarter at 0.80.

Trading performance analysis for NI stock

NiSource Inc. [NI] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -1.63. With this latest performance, NI shares dropped by -8.74% in over the last four-week period, additionally sinking by -21.74% over the last 6 months – not to mention a drop of -24.08% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for NI stock in for the last two-week period is set at 34.33, with the RSI for the last a single of trading hit 29.75, and the three-weeks RSI is set at 38.62 for NiSource Inc. [NI]. The present Moving Average for the last 50 days of trading for this stock 23.64, while it was recorded at 22.50 for the last single week of trading, and 25.59 for the last 200 days.

NiSource Inc. [NI]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and NiSource Inc. [NI] shares currently have an operating margin of +25.06 and a Gross Margin at +56.76. NiSource Inc.’s Net Margin is presently recorded at +7.35.

Return on Total Capital for NI is now 8.54, given the latest momentum, and Return on Invested Capital for the company is 2.86. Return on Equity for this stock inclined to 6.53, with Return on Assets sitting at 1.62. When it comes to the capital structure of this company, NiSource Inc. [NI] has a Total Debt to Total Equity ratio set at 162.15. Additionally, NI Total Debt to Total Capital is recorded at 61.85, with Total Debt to Total Assets ending up at 40.33. Long-Term Debt to Equity for the company is recorded at 154.85, with the Long-Term Debt to Total Capital now at 50.39.

Reflecting on the efficiency of the workforce at the company, NiSource Inc. [NI] managed to generate an average of $45,809 per employee. Receivables Turnover for the company is 5.08 with a Total Asset Turnover recorded at a value of 0.22.NiSource Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.80 and a Current Ratio set at 0.90.

NiSource Inc. [NI]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, NiSource Inc. posted 0/share EPS, while the average EPS was predicted by analysts to be reported at 0.04/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -100.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for NI. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for NiSource Inc. go to 1.81%.

An analysis of insider ownership at NiSource Inc. [NI]

There are presently around $7,768 million, or 94.40% of NI stock, in the hands of institutional investors. The top three institutional holders of NI stocks are: PRICE T ROWE ASSOCIATES INC /MD/ with ownership of 69,053,904, which is approximately 20.198% of the company’s market cap and around 0.50% of the total institutional ownership; VANGUARD GROUP INC, holding 45,321,865 shares of the stock with an approximate value of $1.01 billion in NI stocks shares; and BLACKROCK INC., currently with $761.34 million in NI stock with ownership of nearly 0.279% of the company’s market capitalization.

Positions in NiSource Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 224 institutional holders increased their position in NiSource Inc. [NYSE:NI] by around 39,547,037 shares. Additionally, 225 investors decreased positions by around 36,308,380 shares, while 84 investors held positions by with 271,686,746 shares. The mentioned changes placed institutional holdings at 347,542,163 shares, according to the latest SEC report filing. NI stock had 59 new institutional investments in for a total of 14,136,053 shares, while 67 institutional investors sold positions of 3,121,443 shares during the same period.

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