NextEra Energy Inc. [NEE] moved up 1.22: Why It’s Important

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NextEra Energy Inc. [NYSE: NEE] traded at a high on 12/01/21, posting a 1.22 gain after which it closed the day’ session at $87.84. The company report on November 30, 2021 that NextEra Energy announces agreement to sell a 50% interest in an approximately 2,520-megawatt portfolio renewables project to a third party, 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 an agreement to sell a 50% non-controlling interest in an approximately 2,520 megawatt (MW) portfolio of long-term contracted renewables assets (the portfolio) to the Ontario Teachers’ Pension Plan Board (Ontario Teachers’ or the investor), one of the world’s largest pension plans and a leading infrastructure investor, with approximately C$227.7 billion in net assets. The remaining 50% interest in the portfolio is under an agreement to be sold by NextEra Energy Resources to NextEra Energy Partners, LP (NYSE: NEP) pursuant to a purchase and sale agreement executed on Oct. 21, 2021 between a subsidiary of NEP and a subsidiary of NextEra Energy Resources.


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The sale proceeds are expected to be redeployed into new wind, solar and battery storage growth opportunities, including NextEra Energy Resources’ more than 18,000-MW renewables and storage backlog. This 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 in the portfolio, NextEra Energy Resources is also expected to receive ongoing annual fee income of approximately $16 million in year one and escalating thereafter for operations, maintenance and management services, and the transaction is expected to be accretive to earnings and generate an overall improvement in net present value for NextEra Energy shareholders.

The results of the trading session contributed to over 9942800 shares changing hands. Over the past one week, the price volatility of NextEra Energy Inc. stands at 2.38% while the volatility over the past one month is 1.75%.

The market cap for NEE stock reached $170.93 billion, with 1.96 billion shares outstanding and 1.96 billion shares in the current float. Compared to the average trading volume of 6.57M shares, NEE reached a trading volume of 9942800 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about NextEra Energy Inc. [NEE]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for NEE shares is $91.31 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on NEE stock is a recommendation set at 2.00. 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.

Credit Suisse have made an estimate for NextEra Energy Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on July 14, 2021. While these analysts kept the previous recommendation, Credit Suisse dropped their target price from $87 to $85. The new note on the price target was released on March 08, 2021, representing the official price target for NextEra Energy Inc. stock. Previously, the target price had yet another raise to $88, while Bernstein analysts kept a Outperform rating on NEE stock.

The Average True Range (ATR) for NextEra Energy Inc. is set at 1.62, with the Price to Sales ratio for NEE stock in the period of the last 12 months amounting to 10.41. The Price to Book ratio for the last quarter was 4.70, with the Price to Cash per share for the same quarter was set at 0.36. Price to Free Cash Flow for NEE in the course of the last twelve months was 37.02 with Quick ratio for the last quarter at 0.40.

How has NEE stock performed recently?

NextEra Energy Inc. [NEE] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 0.61. With this latest performance, NEE shares gained by 2.63% in over the last four-week period, additionally plugging by 21.38% over the last 6 months – not to mention a rise of 18.46% 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 NEE stock in for the last two-week period is set at 58.00, with the RSI for the last a single of trading hit 57.05, and the three-weeks RSI is set at 58.16 for NextEra Energy Inc. [NEE]. The present Moving Average for the last 50 days of trading for this stock 83.62, while it was recorded at 87.32 for the last single week of trading, and 78.68 for the last 200 days.

NextEra Energy Inc. [NEE]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and NextEra Energy Inc. [NEE] shares currently have an operating margin of +23.57 and a Gross Margin at +33.58. NextEra Energy Inc.’s Net Margin is presently recorded at +17.09.

Return on Total Capital for NEE is now 4.51, given the latest momentum, and Return on Invested Capital for the company is 3.79. Return on Equity for this stock inclined to 7.94, with Return on Assets sitting at 2.38. When it comes to the capital structure of this company, NextEra Energy Inc. [NEE] has a Total Debt to Total Equity ratio set at 133.19. Additionally, NEE Total Debt to Total Capital is recorded at 57.12, with Total Debt to Total Assets ending up at 38.09. Long-Term Debt to Equity for the company is recorded at 116.36, with the Long-Term Debt to Total Capital now at 49.90.

Reflecting on the efficiency of the workforce at the company, NextEra Energy Inc. [NEE] managed to generate an average of $211,522 per employee. Receivables Turnover for the company is 5.91 with a Total Asset Turnover recorded at a value of 0.14.NextEra Energy Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.40 and a Current Ratio set at 0.50.

Earnings analysis for NextEra Energy Inc. [NEE]

With the latest financial reports released by the company, NextEra Energy Inc. posted 0.4/share EPS, while the average EPS was predicted by analysts to be reported at 0.37/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 8.10%. 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 NEE. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for NextEra Energy Inc. go to 8.90%.

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Insider trade positions for NextEra Energy Inc. [NEE]

There are presently around $134,042 million, or 79.00% of NEE stock, in the hands of institutional investors. The top three institutional holders of NEE stocks are: VANGUARD GROUP INC with ownership of 177,664,729, which is approximately 0.627% of the company’s market cap and around 0.15% of the total institutional ownership; BLACKROCK INC., holding 151,402,582 shares of the stock with an approximate value of $13.3 billion in NEE stocks shares; and STATE STREET CORP, currently with $8.72 billion in NEE stock with ownership of nearly 2.118% of the company’s market capitalization.

1,052 institutional holders increased their position in NextEra Energy Inc. [NYSE:NEE] by around 59,196,250 shares. Additionally, 879 investors decreased positions by around 37,139,733 shares, while 311 investors held positions by with 1,429,644,247 shares. The mentioned changes placed institutional holdings at 1,525,980,230 shares, according to the latest SEC report filing. NEE stock had 119 new institutional investments in for a total of 15,019,487 shares, while 91 institutional investors sold positions of 3,644,905 shares during the same period.