Los Angeles Capital Management LLC Has $35.40 Million Position in Duke Energy Corporation $DUK

Key Points

• Los Angeles Capital Management increased its Duke Energy stake by 497.7% in the fourth quarter, ending with 282,754 shares valued at about $35.4 million.
• Duke Energy received a major boost from the U.S. Department of Energy, which selected it for up to $61.8 million in grant funding for coal-plant upgrades in Kentucky and North Carolina, potentially improving reliability and lowering customer costs.
• On the downside, Duke Energy faces pressure from customers and regulators over an 18% proposed rate hike in North Carolina, while analysts remain mixed overall with a Moderate Buy consensus and average price target of $138.93.

Los Angeles Capital Management LLC boosted its stake in shares of Duke Energy Corporation (NYSE:DUK - Free Report) by 497.7% during the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 282,754 shares of the utilities provider's stock after buying an additional 235,448 shares during the quarter. Los Angeles Capital Management LLC's holdings in Duke Energy were worth $35,404,000 as of its most recent SEC filing.

Other hedge funds have also recently made changes to their positions in the company. DB&C Advisors LLC acquired a new position in Duke Energy during the 4th quarter valued at about $920,000. Nemes Rush Group LLC boosted its stake in Duke Energy by 23.1% during the 4th quarter. Nemes Rush Group LLC now owns 1,447 shares of the utilities provider's stock valued at $170,000 after purchasing an additional 272 shares during the last quarter. Havemeyer Place LP acquired a new position in Duke Energy during the 4th quarter valued at about $142,000. Vestcor Inc boosted its stake in Duke Energy by 27.0% during the 4th quarter. Vestcor Inc now owns 184,418 shares of the utilities provider's stock valued at $21,616,000 after purchasing an additional 39,230 shares during the last quarter. Finally, Lowe Brockenbrough & Co. Inc. boosted its stake in Duke Energy by 1.0% during the 4th quarter. Lowe Brockenbrough & Co. Inc. now owns 99,563 shares of the utilities provider's stock valued at $11,670,000 after purchasing an additional 980 shares during the last quarter. 65.31% of the stock is owned by institutional investors.

Key Headlines Impacting Duke Energy

Here are the key news stories impacting Duke Energy this week:

• Positive Sentiment: The U.S. Department of Energy selected Duke Energy for up to $61.8 million in grant funding to upgrade coal-fired plants in Kentucky and North Carolina, lifting total federal support for Duke projects to nearly $96 million. The funding should help improve reliability and may reduce customer costs. Article Title
• Positive Sentiment: Duke Energy said it sees data centers driving power demand growth at roughly 10x historic pace, which supports a longer-term growth story for utility load and capital investment. Article Title
• Positive Sentiment: Duke Energy also received a separate $61.8 million DOE grant headline from market coverage, reinforcing investor interest in federal support for its coal plant modernization efforts. Article Title
• Neutral Sentiment: Duke Energy Foundation announced $500,000 in grants for South Carolina emergency preparedness and another $500,000 for small-business support in North Carolina. These are positive for reputation, but likely limited direct stock impact. Article Title
• Negative Sentiment: North Carolina customers and consumer groups are pushing back hard against Duke Energy’s proposed 18% rate hike, which could increase regulatory scrutiny and weigh on sentiment if approval becomes difficult. Article Title
• Negative Sentiment: St. Petersburg approved a feasibility study on leaving Duke Energy Florida for a city-run utility, a reminder of customer dissatisfaction and a potential long-term competitive/regulatory risk. Article Title

Duke Energy Price Performance

Duke Energy stock opened at $124.28 on Monday. Duke Energy Corporation has a 12 month low of $113.66 and a 12 month high of $134.49. The company has a current ratio of 0.66, a quick ratio of 0.44 and a debt-to-equity ratio of 1.45. The business's 50 day simple moving average is $126.82 and its 200 day simple moving average is $123.97. The company has a market cap of $96.89 billion, a price-to-earnings ratio of 19.03 and a beta of 0.39.

Duke Energy (NYSE:DUK - Get Free Report) last issued its earnings results on Monday, May 4th. The utilities provider reported $1.93 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.87 by $0.06. Duke Energy had a net margin of 15.49% and a return on equity of 9.73%. The business had revenue of $9.18 billion for the quarter, compared to analysts' expectations of $8.44 billion. During the same quarter in the previous year, the firm posted $1.76 EPS. The business's revenue for the quarter was up 11.3% compared to the same quarter last year. Sell-side analysts forecast that Duke Energy Corporation will post 6.71 EPS for the current year.

Duke Energy Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, June 16th. Stockholders of record on Friday, May 15th will be issued a $1.065 dividend. The ex-dividend date of this dividend is Friday, May 15th. This represents a $4.26 annualized dividend and a dividend yield of 3.4%. Duke Energy's dividend payout ratio is presently 65.24%.

Insider Buying and Selling at Duke Energy

In related news, CEO Louis E. Renjel sold 3,500 shares of the stock in a transaction on Monday, May 11th. The stock was sold at an average price of $125.15, for a total value of $438,025.00. Following the transaction, the chief executive officer owned 21,415 shares of the company's stock, valued at $2,680,087.25. This represents a 14.05% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Harry K. Sideris sold 20,000 shares of the stock in a transaction on Friday, May 8th. The shares were sold at an average price of $124.37, for a total value of $2,487,400.00. Following the completion of the transaction, the chief executive officer directly owned 96,102 shares in the company, valued at approximately $11,952,205.74. This represents a 17.23% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.12% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on DUK shares. UBS Group cut their price target on Duke Energy from $137.00 to $135.00 in a research note on Monday, May 11th. Morgan Stanley cut their target price on Duke Energy from $141.00 to $132.00 in a research note on Thursday, May 21st. Jefferies Financial Group cut their target price on Duke Energy from $143.00 to $138.00 in a research note on Monday, May 11th. JPMorgan Chase & Co. cut their target price on Duke Energy from $139.00 to $136.00 and set a "neutral" rating on the stock in a research note on Wednesday, May 13th. Finally, The Goldman Sachs Group boosted their target price on Duke Energy from $141.00 to $142.00 and gave the stock a "buy" rating in a research note on Wednesday, February 11th. Nine research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Duke Energy has an average rating of "Moderate Buy" and an average target price of $138.93.

About Duke Energy

Duke Energy Corporation is a U.S.-based electric power holding company headquartered in Charlotte, North Carolina. The company's core business is the generation, transmission and distribution of electricity to residential, commercial and industrial customers. Duke Energy operates a mix of regulated electric utilities and non-regulated energy businesses, providing essential energy infrastructure and services across multiple states.

Its operating activities include owning and operating generation assets across a portfolio that encompasses nuclear, natural gas, coal, hydroelectric and an expanding array of renewable resources, as well as battery storage and grid modernization projects.

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