NextEra Energy Partners LP [NEP] Stock trading around $75.81 per share: What’s Next?

NextEra Energy Partners LP [NYSE: NEP] slipped around -3.3 points on Thursday, while shares priced at $75.81 at the close of the session, down -4.17%. The company report on December 8, 2022 that NextEra Energy Partners, LP announces pricing of $500 million in aggregate principal amount of 2.50% convertible senior notes due 2026.

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NextEra Energy Partners, LP (NYSE: NEP) today announced the pricing of $500 million in aggregate principal amount of its 2.50% convertible senior notes due 2026 (the “notes”) in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The offering is expected to close on Dec. 12, 2022, subject to customary closing conditions.

The notes will pay interest semi-annually at an annual rate of 2.50%. Holders may convert all or a portion of their notes at any time prior to their maturity date in principal amounts equal to $1,000 or an integral multiple thereof. Upon conversion, NextEra Energy Partners will pay cash up to the aggregate principal amount of the notes to be converted and pay or deliver, as the case may be, cash, NextEra Energy Partners common units, or a combination of cash and common units, at NextEra Energy Partners’ election, in respect of the remainder, if any, of NextEra Energy Partners’ conversion obligation in excess of the aggregate principal amount of the notes being converted. The initial conversion rate represents an approximately 20% premium to the $79.11 per common unit closing price of NextEra Energy Partners common units on the New York Stock Exchange on Dec. 7, 2022. The conversion rate is subject to adjustment in certain circumstances. The notes will mature on June 15, 2026, and will be fully and unconditionally guaranteed on a senior unsecured basis by NextEra Energy Operating Partners, LP, a direct subsidiary of NextEra Energy Partners.

NextEra Energy Partners LP stock is now -10.18% down from its year-to-date (YTD) trading value. NEP Stock saw the intraday high of $76.285 and lowest of $74.36 per share. The company’s 52-week high price is 87.72, which means current price is +23.65% above from all time high which was touched on 09/13/22.

Compared to the average trading volume of 436.19K shares, NEP reached a trading volume of 2781437 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 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 $85.29 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 2.30. 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.

RBC Capital Mkts have made an estimate for NextEra Energy Partners LP shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on June 17, 2022. While these analysts kept the previous recommendation, CIBC raised their target price to Neutral. The new note on the price target was released on June 10, 2022, representing the official price target for NextEra Energy Partners LP stock.

The Average True Range (ATR) for NextEra Energy Partners LP is set at 1.97, with the Price to Sales ratio for NEP stock in the period of the last 12 months amounting to 5.56. The Price to Book ratio for the last quarter was 1.89, with the Price to Cash per share for the same quarter was set at 2.61.

How has NEP stock performed recently?

NextEra Energy Partners LP [NEP] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -4.86. With this latest performance, NEP shares dropped by -0.62% in over the last four-week period, additionally plugging by 0.29% over the last 6 months – not to mention a drop of -10.97% 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 43.27, with the RSI for the last a single of trading hit 36.77, and the three-weeks RSI is set at 46.23 for NextEra Energy Partners LP [NEP]. The present Moving Average for the last 50 days of trading for this stock 75.33, while it was recorded at 78.40 for the last single week of trading, and 76.39 for the last 200 days.

NextEra Energy Partners LP [NEP]: Deeper insight into the 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 +23.83 and a Gross Margin at +28.00. NextEra Energy Partners LP’s Net Margin is presently recorded at +13.95.

Return on Equity for this stock inclined to 5.14, with Return on Assets sitting at 0.87.

NextEra Energy Partners LP’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.80 and a Current Ratio set at 1.90.

Earnings analysis for NextEra Energy Partners LP [NEP]

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 27.71%.

Insider trade positions for NextEra Energy Partners LP [NEP]

There are presently around $5,458 million, or 87.80% of NEP stock, in the hands of institutional investors. The top three institutional holders of NEP stocks are: BLACKROCK INC. with ownership of 7,051,257, which is approximately 1.152% of the company’s market cap and around 1.06% of the total institutional ownership; FMR LLC, holding 6,532,678 shares of the stock with an approximate value of $495.24 million in NEP stocks shares; and NEUBERGER BERMAN GROUP LLC, currently with $316.26 million in NEP stock with ownership of nearly -0.475% 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 194 institutional holders increased their position in NextEra Energy Partners LP [NYSE:NEP] by around 7,054,766 shares. Additionally, 155 investors decreased positions by around 5,344,566 shares, while 80 investors held positions by with 59,591,355 shares. The mentioned changes placed institutional holdings at 71,990,687 shares, according to the latest SEC report filing. NEP stock had 47 new institutional investments in for a total of 3,891,471 shares, while 31 institutional investors sold positions of 466,955 shares during the same period.

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