Duke Energy (NYSE:DUK) Cut to "Sell" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Duke Energy to “sell” from “hold,” despite the broader analyst consensus remaining “Moderate Buy” with an average price target of $137.56.
• Duke Energy shares opened at $117.44, down 0.9%, and remain below their 52-week high of $134.49. The utility has a market capitalization of approximately $91.57 billion.
• Quarterly earnings exceeded expectations: Duke reported adjusted EPS of $1.43 versus the $1.30 consensus estimate, while revenue rose 1.1% year over year to $7.59 billion, slightly below forecasts.

Duke Energy (NYSE:DUK - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

Several other research firms have also issued reports on DUK. Barclays decreased their target price on Duke Energy from $140.00 to $132.00 and set an "overweight" rating on the stock in a research note on Wednesday, August 5th. BTIG Research reiterated a "buy" rating on shares of Duke Energy in a research note on Thursday, July 23rd. Mizuho set a $136.00 price target on shares of Duke Energy in a research report on Wednesday, August 5th. JPMorgan Chase & Co. raised their price objective on shares of Duke Energy from $136.00 to $141.00 and gave the company a "neutral" rating in a research note on Thursday, July 16th. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of Duke Energy in a research note on Friday, July 31st. Ten investment analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $137.56.

Duke Energy Stock Down 0.9%

Duke Energy stock opened at $117.44 on Friday. The company has a market capitalization of $91.57 billion, a PE ratio of 17.63, a price-to-earnings-growth ratio of 2.77 and a beta of 0.37. The company has a debt-to-equity ratio of 1.47, a quick ratio of 0.43 and a current ratio of 0.66. Duke Energy has a fifty-two week low of $113.89 and a fifty-two week high of $134.49. The firm has a 50 day moving average price of $123.16 and a 200 day moving average price of $125.84.

Duke Energy (NYSE:DUK - Get Free Report) last released its quarterly earnings results on Monday, August 3rd. The utilities provider reported $1.43 EPS for the quarter, topping analysts' consensus estimates of $1.30 by $0.13. Duke Energy had a return on equity of 9.78% and a net margin of 15.78%.The company had revenue of $7.59 billion for the quarter, compared to analysts' expectations of $7.66 billion. During the same period in the prior year, the firm earned $1.25 earnings per share. The firm's revenue was up 1.1% compared to the same quarter last year. Research analysts expect that Duke Energy will post 6.72 earnings per share for the current year.

Hedge Funds Weigh In On Duke Energy

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Ables Iannone Moore & Associates Inc. lifted its stake in Duke Energy by 1.2% in the second quarter. Ables Iannone Moore & Associates Inc. now owns 6,623 shares of the utilities provider's stock worth $838,000 after acquiring an additional 80 shares during the last quarter. Sharp Wealth Advisory LLC increased its position in shares of Duke Energy by 4.5% in the 1st quarter. Sharp Wealth Advisory LLC now owns 1,876 shares of the utilities provider's stock valued at $246,000 after purchasing an additional 81 shares during the last quarter. Absher Wealth Management LLC raised its holdings in shares of Duke Energy by 2.3% in the 1st quarter. Absher Wealth Management LLC now owns 3,648 shares of the utilities provider's stock valued at $478,000 after purchasing an additional 81 shares in the last quarter. Elm Partners Management LLC lifted its position in shares of Duke Energy by 0.9% during the 4th quarter. Elm Partners Management LLC now owns 9,254 shares of the utilities provider's stock worth $1,085,000 after purchasing an additional 83 shares during the last quarter. Finally, Sovereign Financial Group Inc. grew its stake in shares of Duke Energy by 2.8% during the first quarter. Sovereign Financial Group Inc. now owns 3,052 shares of the utilities provider's stock worth $400,000 after purchasing an additional 84 shares in the last quarter. Hedge funds and other institutional investors own 65.31% of the company's stock.

Key Stories Impacting Duke Energy

Here are the key news stories impacting Duke Energy this week:

• Positive Sentiment: Strong electricity demand highlights system growth: Unusually hot September weather has driven elevated power usage across North and South Carolina. Duke asked customers to voluntarily reduce consumption during the peak 2–8 p.m. period, underscoring demand for its electricity and the importance of grid reliability. Duke Energy asks Carolinas customers to reduce electricity use during today's peak-demand period
• Positive Sentiment: Storm response recognized: The Edison Electric Institute honored Duke for restoring service to nearly 200,000 customers after Winter Storm Fern, supporting the company’s reputation for operational execution and customer service. EEI recognizes Duke Energy for outstanding response to Winter Storm Fern
• Neutral Sentiment: Outage recovery continues: Most of Greensboro’s power had been restored by Friday evening after outages, limiting the potential for a prolonged customer-impact issue but highlighting ongoing reliability and weather-related operating risks. The majority of Greensboro's power has been restored
• Negative Sentiment: Morgan Stanley lowered its price target: The firm cut its target for Duke from $133 to $127 and maintained an “equal weight” rating. While the revised target still implies upside, the reduction signals more limited near-term appreciation potential and was likely the clearest market-specific catalyst.
• Negative Sentiment: North Carolina rejected a $584 million gas-turbine proposal: State regulators denied Duke’s plan for generation near an Amazon data center. The decision could delay capacity additions, weaken expected data-center growth opportunities, and complicate recovery of investment costs from customers. NC regulators deny Duke Energy's gas turbine proposal
• Negative Sentiment: Legal and regulatory liabilities remain concerns: Duke dropped its challenge to a workplace-safety fine tied to a lineman’s electrocution death, while a separate lawsuit alleges negligence in a power-line death. Potential penalties, litigation costs, and reputational damage are modest but unfavorable overhangs.

Duke Energy Company Profile

Duke Energy Corporation is an electric and natural gas utility holding company headquartered in Charlotte, North Carolina. The company generates, transmits, distributes and sells electricity, with a generation portfolio that includes natural gas, nuclear, coal, hydroelectric and renewable energy resources. It also operates natural gas distribution businesses and provides related energy services.

Duke Energy's regulated electric utilities serve residential, commercial and industrial customers across the Carolinas, Florida, Indiana, Ohio and Kentucky.

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