Corvex Management LP Acquires New Stake in Sempra Energy $SRE

Key Points

• Corvex Management LP has acquired a significant stake in Sempra Energy, purchasing 1,056,110 shares valued at approximately $75.36 million, making it the fund's 12th largest position.
• Several institutional investors, including Wellington Management Group LLP and JPMorgan Chase & Co., have also increased their holdings in Sempra Energy, reflecting growing institutional interest in the utility provider.
• Sempra Energy recently reported earnings of $0.89 per share, exceeding analyst expectations, and has a current consensus rating of "Moderate Buy" with an average target price of $82.33.

Corvex Management LP bought a new position in Sempra Energy (NYSE:SRE - Free Report) in the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 1,056,110 shares of the utilities provider's stock, valued at approximately $75,364,000. Sempra Energy makes up approximately 2.9% of Corvex Management LP's investment portfolio, making the stock its 12th biggest position. Corvex Management LP owned about 0.16% of Sempra Energy at the end of the most recent quarter.

Several other institutional investors have also recently added to or reduced their stakes in SRE. Benjamin Edwards Inc. increased its stake in shares of Sempra Energy by 2.2% in the 4th quarter. Benjamin Edwards Inc. now owns 24,762 shares of the utilities provider's stock valued at $2,172,000 after acquiring an additional 535 shares in the last quarter. Cary Street Partners Financial LLC acquired a new stake in Sempra Energy in the fourth quarter worth $56,000. Captrust Financial Advisors increased its stake in Sempra Energy by 2.7% in the fourth quarter. Captrust Financial Advisors now owns 70,118 shares of the utilities provider's stock valued at $6,151,000 after purchasing an additional 1,838 shares in the last quarter. Crestline Management LP acquired a new position in shares of Sempra Energy during the fourth quarter valued at about $6,183,000. Finally, Corton Capital Inc. bought a new position in shares of Sempra Energy during the 4th quarter worth about $227,000. 89.65% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling

In other Sempra Energy news, SVP Alexander Lisa Larroque sold 1,576 shares of the business's stock in a transaction on Wednesday, July 23rd. The stock was sold at an average price of $80.00, for a total value of $126,080.00. Following the transaction, the senior vice president owned 15,600 shares of the company's stock, valued at approximately $1,248,000. The trade was a 9.18% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Caroline Ann Winn sold 5,114 shares of the company's stock in a transaction on Thursday, August 14th. The shares were sold at an average price of $82.01, for a total value of $419,399.14. Following the completion of the transaction, the executive vice president owned 39,380 shares of the company's stock, valued at $3,229,553.80. This trade represents a 11.49% decrease in their position. The disclosure for this sale can be found here. 0.27% of the stock is owned by insiders.

Sempra Energy Stock Down 2.1%

SRE traded down $1.67 during mid-day trading on Monday, reaching $79.44. 4,815,168 shares of the stock were exchanged, compared to its average volume of 4,465,359. Sempra Energy has a 1 year low of $61.90 and a 1 year high of $95.77. The company has a debt-to-equity ratio of 0.93, a quick ratio of 0.41 and a current ratio of 0.48. The stock has a market capitalization of $51.83 billion, a PE ratio of 19.19, a price-to-earnings-growth ratio of 2.58 and a beta of 0.65. The company has a 50 day moving average price of $79.68 and a two-hundred day moving average price of $75.52.

Sempra Energy (NYSE:SRE - Get Free Report) last announced its earnings results on Thursday, August 7th. The utilities provider reported $0.89 EPS for the quarter, beating the consensus estimate of $0.82 by $0.07. Sempra Energy had a net margin of 20.28% and a return on equity of 8.42%. The company had revenue of $3 billion during the quarter, compared to the consensus estimate of $3.35 billion. During the same quarter in the prior year, the company posted $0.89 earnings per share. The firm's revenue for the quarter was down .4% on a year-over-year basis. As a group, research analysts anticipate that Sempra Energy will post 4.76 EPS for the current year.

Analysts Set New Price Targets

A number of analysts recently commented on the company. Barclays boosted their target price on Sempra Energy from $71.00 to $80.00 and gave the company an "equal weight" rating in a research report on Tuesday, August 26th. Citigroup restated a "neutral" rating and set a $80.00 price objective (up previously from $70.00) on shares of Sempra Energy in a report on Monday, August 4th. Morgan Stanley reaffirmed an "overweight" rating on shares of Sempra Energy in a research report on Thursday, August 21st. Finally, BMO Capital Markets increased their target price on Sempra Energy from $78.00 to $81.00 and gave the stock an "outperform" rating in a report on Monday, May 12th. Seven investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to MarketBeat.com, Sempra Energy currently has an average rating of "Moderate Buy" and an average target price of $82.33.

Sempra Energy Company Profile

Sempra operates as an energy infrastructure company in the United States and internationally. It operates through three segments: Sempra California, Sempra Texas Utilities, and Sempra Infrastructure. The Sempra California segment provides electric services; and natural gas services to San Diego County.