Hsbc Holdings PLC Makes New $1.49 Million Investment in Spire Inc. $SR

Key Points

• HSBC Holdings PLC opened a new position in Spire Inc. in the fourth quarter, buying 18,089 shares worth about $1.49 million.
• Spire reported better-than-expected earnings of $3.76 per share for the quarter, though revenue came in below estimates at $1.02 billion.
• The utility also offers a 4.1% dividend yield, and Wall Street remains cautiously positive with an average Moderate Buy rating and a $94.30 price target.

Hsbc Holdings PLC purchased a new position in shares of Spire Inc. (NYSE:SR - Free Report) in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor purchased 18,089 shares of the utilities provider's stock, valued at approximately $1,490,000.

Other large investors also recently bought and sold shares of the company. Community Bank N.A. purchased a new position in shares of Spire in the 3rd quarter valued at about $25,000. Sound Income Strategies LLC purchased a new position in Spire in the 4th quarter valued at about $25,000. Optima Capital LLC acquired a new position in shares of Spire in the fourth quarter valued at approximately $25,000. Los Angeles Capital Management LLC purchased a new stake in shares of Spire in the fourth quarter valued at $25,000. Finally, MV Capital Management Inc. acquired a new position in shares of Spire during the 4th quarter valued at about $33,000. Hedge funds and other institutional investors own 87.36% of the company's stock.

Spire Stock Up 0.1%

Shares of Spire stock traded up $0.07 during midday trading on Friday, hitting $80.65. The company's stock had a trading volume of 297,927 shares, compared to its average volume of 716,580. Spire Inc. has a 1-year low of $71.24 and a 1-year high of $95.31. The firm has a market capitalization of $4.77 billion, a P/E ratio of 14.17, a PEG ratio of 1.80 and a beta of 0.52. The company has a quick ratio of 0.48, a current ratio of 0.55 and a debt-to-equity ratio of 1.69. The stock has a 50-day simple moving average of $82.21 and a 200-day simple moving average of $86.13.

Spire (NYSE:SR - Get Free Report) last released its earnings results on Wednesday, May 6th. The utilities provider reported $3.76 earnings per share for the quarter, beating the consensus estimate of $3.72 by $0.04. The company had revenue of $1.02 billion for the quarter, compared to analysts' expectations of $1.07 billion. Spire had a return on equity of 9.49% and a net margin of 13.97%.The business's revenue for the quarter was up 4.5% on a year-over-year basis. During the same quarter in the previous year, the business posted $3.60 EPS. As a group, sell-side analysts expect that Spire Inc. will post 4.02 earnings per share for the current year.

Spire Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, July 2nd. Shareholders of record on Thursday, June 11th were paid a $0.825 dividend. The ex-dividend date was Thursday, June 11th. This represents a $3.30 dividend on an annualized basis and a yield of 4.1%. Spire's payout ratio is 58.00%.

Wall Street Analysts Forecast Growth

Several research firms recently commented on SR. JPMorgan Chase & Co. restated a "neutral" rating and issued a $85.00 price target (up from $84.00) on shares of Spire in a report on Friday, June 26th. Weiss Ratings lowered shares of Spire from a "buy (b)" rating to a "buy (b-)" rating in a report on Thursday. Morgan Stanley set a $96.00 price objective on Spire in a research note on Thursday, May 21st. Wolfe Research assumed coverage on Spire in a report on Tuesday, May 26th. They issued a "peer perform" rating on the stock. Finally, Mizuho initiated coverage on shares of Spire in a research note on Tuesday, July 7th. They issued an "outperform" rating and a $88.00 price target on the stock. Two research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat, Spire has an average rating of "Moderate Buy" and an average price target of $94.30.

Insiders Place Their Bets

In related news, Director Paul D. Koonce purchased 500 shares of the firm's stock in a transaction dated Thursday, June 11th. The stock was bought at an average price of $78.46 per share, for a total transaction of $39,230.00. Following the purchase, the director owned 8,000 shares in the company, valued at $627,680. The trade was a 6.67% increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, SVP Ryan L. Hyman sold 3,822 shares of the company's stock in a transaction that occurred on Tuesday, June 9th. The stock was sold at an average price of $80.51, for a total value of $307,709.22. Following the sale, the senior vice president directly owned 14,295 shares of the company's stock, valued at $1,150,890.45. The trade was a 21.10% decrease in their position. The SEC filing for this sale provides additional information. Insiders purchased 3,000 shares of company stock valued at $251,100 over the last quarter. 2.26% of the stock is currently owned by corporate insiders.

Spire Profile

Spire Inc NYSE: SR, formerly known as The Laclede Group, is a regulated natural gas distribution company headquartered in St. Louis, Missouri. Through its three operating divisions—Spire Missouri, Spire Alabama and Spire Mississippi—the company delivers natural gas to more than 1.7 million residential, commercial and industrial customers. Spire's service territory spans key markets in the central and southern United States, including metropolitan St. Louis, central Alabama and central Mississippi.

Founded in 1857 as the Laclede Gas Light Company, the business has grown through strategic acquisitions, notably Alabama Gas Corporation in 2013 and Mississippi Gas in 2016.

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