6,093,900 Shares in MGE Energy Inc. $MGEE Acquired by BlackRock Inc.

Key Points

• BlackRock acquired 6.09 million shares of MGE Energy in the second quarter, worth approximately $496.9 million, giving it a 16.58% stake. Institutional investors collectively own 52.58% of the utility.
• Analyst views remain mixed, with ratings ranging from buy to sell; MGE Energy has a consensus rating of “Hold” and an average price target of $77.50.
• MGE Energy beat quarterly earnings expectations with EPS of $0.89 versus $0.77 projected and raised its quarterly dividend to $0.5083, equivalent to a 2.6% annualized yield.

BlackRock Inc. purchased a new position in MGE Energy Inc. (NASDAQ:MGEE - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor purchased 6,093,900 shares of the utilities provider's stock, valued at approximately $496,897,000. BlackRock Inc. owned 16.58% of MGE Energy at the end of the most recent reporting period.

Other institutional investors have also added to or reduced their stakes in the company. Deutsche Bank AG bought a new position in shares of MGE Energy during the second quarter worth $4,160,000. Bank of New York Mellon Corp purchased a new position in MGE Energy during the second quarter valued at $27,087,000. GSA Capital Partners LLP bought a new stake in MGE Energy in the 2nd quarter valued at $760,000. Avalon Trust Co bought a new stake in MGE Energy in the 2nd quarter valued at $49,000. Finally, GAMMA Investing LLC lifted its stake in MGE Energy by 15.7% in the 2nd quarter. GAMMA Investing LLC now owns 5,072 shares of the utilities provider's stock worth $414,000 after purchasing an additional 690 shares in the last quarter. 52.58% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several research analysts have commented on MGEE shares. LADENBURG THALM/SH SH raised shares of MGE Energy from a "neutral" rating to a "buy" rating and set a $81.00 price objective for the company in a report on Monday, June 8th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of MGE Energy in a report on Wednesday, August 5th. Finally, Morgan Stanley decreased their target price on MGE Energy from $76.00 to $74.00 and set an "underweight" rating on the stock in a research report on Friday. One equities research analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, MGE Energy currently has a consensus rating of "Hold" and an average price target of $77.50.

MGE Energy Stock Up 0.8%

Shares of NASDAQ:MGEE opened at $79.32 on Tuesday. MGE Energy Inc. has a 1 year low of $72.16 and a 1 year high of $88.01. The business has a 50 day simple moving average of $80.56 and a two-hundred day simple moving average of $78.83. The firm has a market capitalization of $3.00 billion, a PE ratio of 19.49 and a beta of 0.71. The company has a debt-to-equity ratio of 0.61, a current ratio of 1.14 and a quick ratio of 0.79.

MGE Energy (NASDAQ:MGEE - Get Free Report) last released its earnings results on Wednesday, August 5th. The utilities provider reported $0.89 EPS for the quarter, beating analysts' consensus estimates of $0.77 by $0.12. MGE Energy had a return on equity of 11.10% and a net margin of 19.45%.The firm had revenue of $161.19 million for the quarter, compared to analysts' expectations of $166.37 million. On average, equities analysts predict that MGE Energy Inc. will post 3.99 EPS for the current year.

MGE Energy Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st will be given a $0.5083 dividend. This is a boost from MGE Energy's previous quarterly dividend of $0.47. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $2.03 annualized dividend and a yield of 2.6%. MGE Energy's dividend payout ratio is currently 46.68%.

MGE Energy 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 provides regulated electric and natural gas distribution services to residential, commercial and industrial customers in south-central Wisconsin. MGE Energy's operations encompass the generation, transmission and distribution of electricity as well as the purchase and distribution of natural gas, with an emphasis on reliable service and system resilience.

Since reorganizing as a holding company in 2001, MGE Energy has expanded its portfolio to include nonregulated subsidiaries involved in renewable energy development, energy services and infrastructure support.

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