NextEra Energy Partners LP [NYSE: NEP] price plunged by -2.71 percent to reach at -$1.78. The company report on November 3, 2020 that NextEra Energy announces agreements to sell interests in a long-term contracted renewables portfolio, highlighting the value of its best-in-class development program.
NextEra Energy, Inc. (NYSE: NEE) announced that a subsidiary of NextEra Energy Resources, LLC has entered into agreements to sell a 90% interest in a 1,000 megawatt (MW) portfolio of long-term contracted renewables assets (the portfolio) and a 100% interest in a 100-MW solar-plus-storage project for approximately $1.3 billion in total proceeds, including tax equity, and subject to working capital and other adjustments. The portfolio is being acquired by NextEra Energy Partners, LP (NYSE: NEP) and a consortium of private infrastructure investors led by KKR (the investors) in two separate transactions.
The sale proceeds are expected to be redeployed into new wind, solar and battery storage growth opportunities, including NextEra Energy Resources’ more than 15,000-MW renewables backlog. The attractive capital recycling opportunity provides significant value to NextEra Energy Resources and highlights the value of its renewables development platform. Over the operating life of the assets, NextEra Energy Resources is also expected to receive ongoing annual fee income of approximately $7 million in year one and escalating thereafter, from the investors for operations, maintenance and management services, and the transaction is expected to be immediately accretive to earnings.
A sum of 1301837 shares traded at recent session while its average daily volume was at 499.42K shares. NextEra Energy Partners LP shares reached a high of $65.27 and dropped to a low of $63.83 until finishing in the latest session at $63.95.
The one-year NEP stock forecast points to a potential upside of 6.87. The average equity rating for NEP stock is currently 2.10, trading closer to a bullish pattern in the stock market.
Guru’s Opinion on NextEra Energy Partners LP [NEP]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for NEP shares is $68.67 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on NEP 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.
Vertical Research have made an estimate for NextEra Energy Partners LP shares, keeping their opinion on the stock as Buy, with their previous recommendation back on October 16, 2020. While these analysts kept the previous recommendation, Wells Fargo raised their target price from $68 to $73. The new note on the price target was released on September 15, 2020, representing the official price target for NextEra Energy Partners LP stock. Previously, the target price had yet another raise to $62, while Seaport Global Securities analysts kept a Buy rating on NEP stock.
The Average True Range (ATR) for NextEra Energy Partners LP is set at 2.00, with the Price to Sales ratio for NEP stock in the period of the last 12 months amounting to 5.23. The Price to Book ratio for the last quarter was 1.98, with the Price to Cash per share for the same quarter was set at 1.28.
NEP Stock Performance Analysis:
NextEra Energy Partners LP [NEP] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 0.52. With this latest performance, NEP shares gained by 1.91% in over the last four-week period, additionally plugging by 29.09% over the last 6 months – not to mention a rise of 24.17% 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 NEP stock in for the last two-week period is set at 53.06, with the RSI for the last a single of trading hit 48.40, and the three-weeks RSI is set at 53.20 for NextEra Energy Partners LP [NEP]. The present Moving Average for the last 50 days of trading for this stock 61.29, while it was recorded at 64.40 for the last single week of trading, and 54.87 for the last 200 days.
Insight into NextEra Energy Partners LP Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and NextEra Energy Partners LP [NEP] shares currently have an operating margin of +27.25 and a Gross Margin at +30.41. NextEra Energy Partners LP’s Net Margin is presently recorded at -8.30.
Return on Total Capital for NEP is now 2.30, given the latest momentum, and Return on Invested Capital for the company is -1.24. Return on Equity for this stock declined to -3.14, with Return on Assets sitting at -0.66. When it comes to the capital structure of this company, NextEra Energy Partners LP [NEP] has a Total Debt to Total Equity ratio set at 191.71. Additionally, NEP Total Debt to Total Capital is recorded at 65.72, with Total Debt to Total Assets ending up at 34.15. Long-Term Debt to Equity for the company is recorded at 208.65, with the Long-Term Debt to Total Capital now at 65.53.
Receivables Turnover for the company is 4.10 with a Total Asset Turnover recorded at a value of 0.08.NextEra Energy Partners LP’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.30 and a Current Ratio set at 1.30.
NEP Stock EPS
With the latest financial reports released by the company, NextEra Energy Partners LP posted 0.5/share EPS, while the average EPS was predicted by analysts to be reported at 0.2/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 150.00%. 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 NEP. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for NextEra Energy Partners LP go to 41.90%.
NextEra Energy Partners LP [NEP] Insider Position Details
There are presently around $3,541 million, or 74.60% of NEP stock, in the hands of institutional investors. The top three institutional holders of NEP stocks are: NEUBERGER BERMAN GROUP LLC with ownership of 5,516,242, which is approximately -5.6% of the company’s market cap and around 2.72% of the total institutional ownership; ENERGY INCOME PARTNERS, LLC, holding 3,746,795 shares of the stock with an approximate value of $246.28 million in NEP stocks shares; and JENNISON ASSOCIATES LLC, currently with $229.09 million in NEP stock with ownership of nearly -2.98% of the company’s market capitalization.
Positions in NextEra Energy Partners LP stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 135 institutional holders increased their position in NextEra Energy Partners LP [NYSE:NEP] by around 5,875,835 shares. Additionally, 121 investors decreased positions by around 4,470,539 shares, while 36 investors held positions by with 43,529,615 shares. The mentioned changes placed institutional holdings at 53,875,989 shares, according to the latest SEC report filing. NEP stock had 39 new institutional investments in for a total of 1,814,620 shares, while 38 institutional investors sold positions of 814,882 shares during the same period.