Hsbc Holdings PLC Invests $239.94 Million in Sempra Energy $SRE

Key Points

• HSBC Holdings acquired 2.59 million Sempra Energy shares worth approximately $239.9 million, representing about 0.40% of the utility company. Institutional investors collectively own 89.65% of Sempra’s stock.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $102, versus the reported share price of $83.91.
• Sempra exceeded quarterly earnings expectations with EPS of $1.16 versus the $1.01 consensus estimate and announced a quarterly dividend of $0.6575, equivalent to a 3.1% annualized yield.

Hsbc Holdings PLC bought a new position in Sempra Energy (NYSE:SRE - Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm bought 2,585,731 shares of the utilities provider's stock, valued at approximately $239,937,000. Hsbc Holdings PLC owned about 0.40% of Sempra Energy as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds have also recently modified their holdings of the business. Pure Financial Advisors LLC bought a new position in shares of Sempra Energy in the second quarter worth approximately $4,555,000. Carnegie Investment Counsel boosted its holdings in shares of Sempra Energy by 15.5% during the 1st quarter. Carnegie Investment Counsel now owns 167,391 shares of the utilities provider's stock valued at $16,265,000 after purchasing an additional 22,408 shares during the last quarter. Magellan Asset Management Ltd grew its holdings in Sempra Energy by 4.2% during the 1st quarter. Magellan Asset Management Ltd now owns 2,258,369 shares of the utilities provider's stock valued at $219,446,000 after buying an additional 91,519 shares in the last quarter. Dockside LLC purchased a new position in shares of Sempra Energy in the fourth quarter valued at $3,938,000. Finally, Bank of America Corp DE grew its stake in shares of Sempra Energy by 16.1% in the 1st quarter. Bank of America Corp DE now owns 10,385,174 shares of the utilities provider's stock worth $1,009,127,000 after buying an additional 1,441,981 shares in the last quarter. Institutional investors own 89.65% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on SRE shares. BMO Capital Markets set a $102.00 target price on Sempra Energy and gave the stock an "outperform" rating in a report on Wednesday, July 22nd. Mizuho restated a "neutral" rating and issued a $84.00 target price (down from $104.00) on shares of Sempra Energy in a research note on Monday, August 31st. Jefferies Financial Group raised Sempra Energy from a "hold" rating to a "buy" rating and dropped their price target for the stock from $101.00 to $97.00 in a research report on Tuesday, September 1st. Weiss Ratings reissued a "hold (c+)" rating on shares of Sempra Energy in a report on Friday, July 17th. Finally, Barclays cut their target price on Sempra Energy from $105.00 to $103.00 and set an "overweight" rating on the stock in a research note on Thursday, July 9th. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, Sempra Energy has a consensus rating of "Moderate Buy" and an average price target of $102.00.

Sempra Energy Price Performance

NYSE:SRE opened at $83.91 on Monday. The stock has a market capitalization of $54.87 billion, a PE ratio of 24.32, a price-to-earnings-growth ratio of 2.32 and a beta of 0.55. Sempra Energy has a 52 week low of $78.97 and a 52 week high of $101.04. The stock's 50-day moving average price is $88.74 and its 200-day moving average price is $91.82. The company has a quick ratio of 1.62, a current ratio of 1.64 and a debt-to-equity ratio of 0.78.

Sempra Energy (NYSE:SRE - Get Free Report) last announced its earnings results on Thursday, August 6th. The utilities provider reported $1.16 earnings per share for the quarter, topping the consensus estimate of $1.01 by $0.15. The business had revenue of $3 billion during the quarter, compared to the consensus estimate of $3.14 billion. Sempra Energy had a return on equity of 8.49% and a net margin of 16.70%.The business's quarterly revenue was down .1% on a year-over-year basis. During the same period in the prior year, the company posted $0.89 EPS. Sempra Energy has set its FY 2027 guidance at 5.100-5.700 EPS and its FY 2026 guidance at 4.800-5.300 EPS. As a group, equities analysts expect that Sempra Energy will post 5.12 EPS for the current fiscal year.

Sempra Energy Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Thursday, September 24th will be given a $0.6575 dividend. This represents a $2.63 annualized dividend and a dividend yield of 3.1%. The ex-dividend date is Thursday, September 24th. Sempra Energy's dividend payout ratio (DPR) is 76.23%.

Insider Transactions at Sempra Energy

In other news, EVP Caroline Winn sold 8,000 shares of the stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $90.55, for a total value of $724,400.00. Following the completion of the sale, the executive vice president directly owned 25,164 shares in the company, valued at $2,278,600.20. This represents a 24.12% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 0.31% of the stock is currently owned by company insiders.

Sempra Energy Profile

Sempra Energy is a San Diego–based energy infrastructure company that develops, owns and operates businesses delivering electricity and natural gas. Its operations include regulated utility services that provide electric and gas distribution to residential, commercial and industrial customers, as well as non‑regulated infrastructure businesses that develop and manage large-scale energy assets.

The company's product and service portfolio spans electricity and natural gas delivery, transmission and storage, liquefied natural gas (LNG) facilities, power generation and electric transmission projects.

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