Deutsche Bank AG Makes New $4.16 Million Investment in MGE Energy Inc. $MGEE

Key Points

• Deutsche Bank acquired 51,012 shares of MGE Energy worth approximately $4.16 million, while institutional investors collectively own 52.58% of the utility company.
• Analysts have a mixed outlook, resulting in an overall “Hold” rating and an average price target of $77.50; Morgan Stanley lowered its target to $74, while Ladenburg raised its rating to “Buy” with an $81 target.
• MGE Energy exceeded quarterly EPS expectations, reporting $0.89 versus the $0.77 consensus estimate, and raised its quarterly dividend to $0.5083 per share, representing an annualized yield of about 2.6%.

Deutsche Bank AG bought a new position in MGE Energy Inc. (NASDAQ:MGEE - Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 51,012 shares of the utilities provider's stock, valued at approximately $4,160,000. Deutsche Bank AG owned about 0.14% of MGE Energy at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently modified their holdings of MGEE. Bank of New York Mellon Corp purchased a new stake in MGE Energy during the 2nd quarter valued at about $27,087,000. GSA Capital Partners LLP purchased a new position in MGE Energy in the second quarter worth about $760,000. Avalon Trust Co purchased a new position in MGE Energy in the second quarter worth about $49,000. GAMMA Investing LLC lifted its stake in shares of MGE Energy by 15.7% in the second quarter. GAMMA Investing LLC now owns 5,072 shares of the utilities provider's stock worth $414,000 after buying an additional 690 shares in the last quarter. Finally, Moody National Bank Trust Division purchased a new stake in shares of MGE Energy during the second quarter valued at approximately $402,000. 52.58% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several equities research analysts recently weighed in on MGEE shares. Morgan Stanley reduced their price target on shares of MGE Energy from $76.00 to $74.00 and set an "underweight" rating for the company in a research report on Friday, August 21st. Weiss Ratings reiterated a "hold (c)" rating on shares of MGE Energy in a research note on Wednesday, August 5th. Finally, LADENBURG THALM/SH SH raised MGE Energy from a "neutral" rating to a "buy" rating and set a $81.00 target price for the company in a report on Monday, June 8th. One research analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $77.50.

MGE Energy Stock Performance

Shares of NASDAQ MGEE opened at $79.01 on Wednesday. The firm's 50-day moving average price is $80.61 and its 200-day moving average price is $78.82. The company has a quick ratio of 0.79, a current ratio of 1.14 and a debt-to-equity ratio of 0.61. The company has a market cap of $2.98 billion, a PE ratio of 19.41 and a beta of 0.71. MGE Energy Inc. has a 52-week low of $72.16 and a 52-week high of $88.01.

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

MGE Energy Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st will be paid a dividend of $0.5083 per share. The ex-dividend date is Tuesday, September 1st. This represents a $2.03 dividend on an annualized basis and a yield of 2.6%. This is a boost from MGE Energy's previous quarterly dividend of $0.47. MGE Energy's dividend payout ratio (DPR) is presently 46.68%.

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 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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