JPMorgan Chase & Co. Initiates Coverage on MGE Energy (NASDAQ:MGEE)

Key Points

• JPMorgan initiated coverage of MGE Energy with a “neutral” rating and a $76 price target, implying approximately 6.56% upside from the cited share price.
• Analyst sentiment is broadly cautious: MGE Energy has a consensus “Hold” rating and an average target price of $76, based on one Buy, three Hold, and one Sell recommendation.
• MGE Energy exceeded quarterly earnings expectations, reporting $0.89 in EPS versus the $0.77 consensus estimate, while revenue of $161.19 million fell short of the $166.37 million forecast.

Stock analysts at JPMorgan Chase & Co. initiated coverage on shares of MGE Energy (NASDAQ:MGEE - Get Free Report) in a note issued to investors on Thursday, Briefing.com reports. The brokerage set a "neutral" rating and a $76.00 price target on the utilities provider's stock. JPMorgan Chase & Co.'s price objective would indicate a potential upside of 6.56% from the stock's current price.

A number of other brokerages have also weighed in on MGEE. Morgan Stanley lowered their target price on MGE Energy from $74.00 to $71.00 and set an "underweight" rating on the stock in a research note on Friday, September 18th. Bank of America began coverage on MGE Energy in a research note on Thursday, September 24th. They issued a "neutral" rating and a $76.00 price target for the company. Wall Street Zen raised MGE Energy from a "sell" rating to a "hold" rating in a report on Saturday, October 10th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of MGE Energy in a research report on Wednesday, August 5th. One analyst has rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $76.00.

MGE Energy Stock Performance

Shares of NASDAQ MGEE opened at $71.32 on Thursday. The company has a current ratio of 1.14, a quick ratio of 0.79 and a debt-to-equity ratio of 0.61. The company has a market capitalization of $2.69 billion, a P/E ratio of 17.52, a P/E/G ratio of 3.97 and a beta of 0.69. MGE Energy has a 12 month low of $68.01 and a 12 month high of $87.94. The stock has a 50 day moving average of $75.63 and a 200-day moving average of $77.53.

MGE Energy (NASDAQ:MGEE - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The utilities provider reported $0.89 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.77 by $0.12. MGE Energy had a return on equity of 11.10% and a net margin of 19.45%. The business had revenue of $161.19 million during the quarter, compared to the consensus estimate of $166.37 million. As a group, equities research analysts predict that MGE Energy will post 4.02 EPS for the current year.

Institutional Investors Weigh In On MGE Energy

Several institutional investors have recently made changes to their positions in the stock. Northwestern Mutual Wealth Management Co. boosted its position in shares of MGE Energy by 1.3% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 10,379 shares of the utilities provider's stock worth $846,000 after acquiring an additional 138 shares in the last quarter. Glenmede Trust Co. NA increased its stake in MGE Energy by 3.5% in the first quarter. Glenmede Trust Co. NA now owns 4,356 shares of the utilities provider's stock valued at $337,000 after acquiring an additional 148 shares during the last quarter. Versant Capital Management Inc raised its position in MGE Energy by 19.9% during the third quarter. Versant Capital Management Inc now owns 892 shares of the utilities provider's stock valued at $62,000 after purchasing an additional 148 shares in the last quarter. IFP Advisors Inc raised its position in MGE Energy by 41.3% during the second quarter. IFP Advisors Inc now owns 1,308 shares of the utilities provider's stock valued at $107,000 after purchasing an additional 382 shares in the last quarter. Finally, Ellenbecker Investment Group raised its position in MGE Energy by 14.8% during the first quarter. Ellenbecker Investment Group now owns 3,048 shares of the utilities provider's stock valued at $236,000 after purchasing an additional 393 shares in the last quarter. 52.58% of the stock is currently owned by institutional investors.

MGE Energy Company Profile

MGE Energy, Inc is a public utility holding company headquartered in Madison, Wisconsin. Through its principal subsidiary, Madison Gas and Electric Company (MGE), the company generates, purchases, transmits, distributes and sells electricity, as well as distributes and sells natural gas.

MGE serves residential, commercial and industrial customers in Madison and surrounding communities in south-central Wisconsin. Its energy portfolio includes traditional generation resources along with investments in renewable energy, including wind and solar projects.

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