Magellan Asset Management Ltd Increases Stake in CenterPoint Energy, Inc. $CNP

Key Points

• Magellan Asset Management increased its CenterPoint Energy stake by 23.3% in the first quarter, bringing its holdings to 683,118 shares worth about $29.5 million.
• CenterPoint Energy reported quarterly EPS of $0.56, slightly below analyst expectations, but revenue came in at $2.98 billion, well above estimates. The company also reaffirmed FY2026 EPS guidance of 1.890 to 1.910.
• The utility raised its quarterly dividend to $0.24 per share from $0.23, implying an annualized dividend of $0.96 and a yield of about 2.2%. Analysts currently have a consensus Hold rating with an average price target of $45.31.

Magellan Asset Management Ltd boosted its holdings in shares of CenterPoint Energy, Inc. (NYSE:CNP - Free Report) by 23.3% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 683,118 shares of the utilities provider's stock after buying an additional 129,179 shares during the quarter. Magellan Asset Management Ltd owned 0.10% of CenterPoint Energy worth $29,483,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the business. Vanguard Group Inc. increased its position in shares of CenterPoint Energy by 0.9% during the fourth quarter. Vanguard Group Inc. now owns 82,381,128 shares of the utilities provider's stock worth $3,158,492,000 after acquiring an additional 719,803 shares during the period. T. Rowe Price Investment Management Inc. raised its stake in shares of CenterPoint Energy by 13.2% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 58,286,690 shares of the utilities provider's stock valued at $2,234,712,000 after acquiring an additional 6,794,535 shares in the last quarter. Capital Research Global Investors boosted its holdings in CenterPoint Energy by 1.1% in the fourth quarter. Capital Research Global Investors now owns 20,941,909 shares of the utilities provider's stock valued at $802,916,000 after purchasing an additional 235,346 shares during the period. Geode Capital Management LLC boosted its holdings in CenterPoint Energy by 1.0% in the fourth quarter. Geode Capital Management LLC now owns 17,023,720 shares of the utilities provider's stock valued at $650,189,000 after purchasing an additional 166,305 shares during the period. Finally, Norges Bank acquired a new position in CenterPoint Energy during the 4th quarter worth $343,925,000. Hedge funds and other institutional investors own 91.77% of the company's stock.

CenterPoint Energy Stock Down 0.6%

CNP stock opened at $42.73 on Wednesday. The company has a fifty day moving average price of $43.03 and a 200 day moving average price of $42.20. CenterPoint Energy, Inc. has a 12 month low of $36.59 and a 12 month high of $45.22. The company has a market cap of $27.95 billion, a price-to-earnings ratio of 26.21, a price-to-earnings-growth ratio of 2.55 and a beta of 0.46. The company has a debt-to-equity ratio of 1.96, a current ratio of 1.16 and a quick ratio of 1.04.

CenterPoint Energy (NYSE:CNP - Get Free Report) last issued its quarterly earnings results on Thursday, April 23rd. The utilities provider reported $0.56 earnings per share for the quarter, missing analysts' consensus estimates of $0.58 by ($0.02). The business had revenue of $2.98 billion for the quarter, compared to analyst estimates of $1.98 billion. CenterPoint Energy had a return on equity of 10.56% and a net margin of 11.38%.During the same quarter in the prior year, the company earned $0.53 EPS. CenterPoint Energy has set its FY 2026 guidance at 1.890-1.910 EPS. Sell-side analysts expect that CenterPoint Energy, Inc. will post 1.91 earnings per share for the current year.

CenterPoint Energy Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be issued a dividend of $0.24 per share. This is an increase from CenterPoint Energy's previous quarterly dividend of $0.23. This represents a $0.96 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date of this dividend is Thursday, August 20th. CenterPoint Energy's dividend payout ratio is 56.44%.

Analyst Ratings Changes

Several equities research analysts have weighed in on CNP shares. Truist Financial cut their price target on CenterPoint Energy from $48.00 to $47.00 and set a "buy" rating on the stock in a report on Monday, May 18th. Evercore set a $45.00 price objective on CenterPoint Energy in a research report on Monday, May 4th. BTIG Research initiated coverage on shares of CenterPoint Energy in a research note on Tuesday, June 30th. They set a "neutral" rating on the stock. BMO Capital Markets raised their target price on shares of CenterPoint Energy from $47.00 to $48.00 and gave the company an "outperform" rating in a report on Wednesday, July 15th. Finally, Wall Street Zen downgraded shares of CenterPoint Energy from a "hold" rating to a "sell" rating in a research note on Saturday, April 25th. Eight equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $45.31.

CenterPoint Energy Profile

CenterPoint Energy, Inc NYSE: CNP is a Houston-based regulated utility company that provides electric and natural gas delivery services and related infrastructure operations. The company's principal activities center on the transmission and distribution of electricity in the greater Houston metropolitan area and the distribution of natural gas to customers across several states in the Midwest and South. As a vertically integrated utility, CenterPoint focuses on the reliable delivery of energy through owned and operated networks of lines, pipelines and associated facilities.

CenterPoint's core businesses include regulated electric transmission and distribution services, regulated natural gas distribution, and the operation and maintenance of energy infrastructure.

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