MGE Energy Inc. (NASDAQ:MGEE) Stock Now Rated "Hold" by Sell-Side Brokerages

Key Points

• Analysts collectively rate MGE Energy “Hold.” Of five covering firms, three issued hold ratings, one rated it a sell and one a buy; the average 12-month price target is $76.00.
• MGE Energy shares recently traded at $71.83, near the lower end of their 52-week range of $68.01 to $87.94. The stock has a $2.71 billion market capitalization and a beta of 0.69.
• The company beat quarterly earnings expectations, reporting $0.89 per share versus the $0.77 consensus, and increased its quarterly dividend to $0.5083, implying an annualized yield of about 2.8%.

Shares of MGE Energy Inc. (NASDAQ:MGEE - Get Free Report) have been assigned an average recommendation of "Hold" from the five ratings firms that are covering the company, Marketbeat Ratings reports. One analyst has rated the stock with a sell rating, three have assigned a hold rating and one has given a buy rating to the company. The average 1-year price target among analysts that have covered the stock in the last year is $76.00.

Several research analysts recently issued reports on MGEE shares. Morgan Stanley reduced their target price on shares of MGE Energy from $74.00 to $71.00 and set an "underweight" rating for the company in a report on Friday, September 18th. Weiss Ratings reissued a "hold (c)" rating on shares of MGE Energy in a report on Wednesday, August 5th. JPMorgan Chase & Co. began coverage on MGE Energy in a research note on Thursday. They issued a "neutral" rating and a $76.00 target price on the stock. Bank of America assumed coverage on MGE Energy in a research note on Thursday, September 24th. They issued a "neutral" rating and a $76.00 target price on the stock. Finally, Wall Street Zen raised MGE Energy from a "sell" rating to a "hold" rating in a report on Saturday, October 10th.

Institutional Investors Weigh In On MGE Energy

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

MGE Energy Stock Performance

Shares of MGE Energy stock traded up $0.51 on Thursday, reaching $71.83. 7,214 shares of the stock were exchanged, compared to its average volume of 218,299. The company has a quick ratio of 0.79, a current ratio of 1.14 and a debt-to-equity ratio of 0.61. MGE Energy has a twelve month low of $68.01 and a twelve month high of $87.94. The firm has a market capitalization of $2.71 billion, a price-to-earnings ratio of 17.69, a PEG ratio of 3.97 and a beta of 0.69. The business has a 50 day moving average price of $75.63 and a two-hundred day moving average price of $77.53.

MGE Energy (NASDAQ:MGEE - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The utilities provider reported $0.89 earnings per share for the quarter, topping the consensus estimate of $0.77 by $0.12. The company had revenue of $161.19 million for the quarter, compared to the consensus estimate of $166.37 million. MGE Energy had a net margin of 19.45% and a return on equity of 11.10%. Analysts anticipate that MGE Energy will post 4.02 earnings per share for the current fiscal year.

MGE Energy Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st were issued a $0.5083 dividend. The ex-dividend date of this dividend was Tuesday, September 1st. This is a positive change from MGE Energy's previous quarterly dividend of $0.4750. This represents a $2.03 dividend on an annualized basis and a yield of 2.8%. MGE Energy's dividend payout ratio is presently 49.88%.

About MGE Energy

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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