MGE Energy Inc. $MGEE Shares Newly Acquired by Bank of America Corp DE

Key Points

• Bank of America acquired 82,804 shares of MGE Energy during the second quarter, valued at approximately $6.75 million. Institutional investors collectively own 52.58% of the utility company.
• MGE Energy reported quarterly EPS of $0.89, exceeding estimates of $0.77, while revenue of $161.19 million fell short of expectations. Shares opened at $70.06, near the company’s 52-week low.
• The company raised its quarterly dividend to $0.5083 per share, implying an annualized dividend of $2.03 and a 2.9% yield. Analysts maintain a consensus “Hold” rating with an average price target of $76.

Bank of America Corp DE bought a new position in MGE Energy Inc. (NASDAQ:MGEE - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor bought 82,804 shares of the utilities provider's stock, valued at approximately $6,752,000. Bank of America Corp DE owned about 0.22% of MGE Energy at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the company. BlackRock Inc. acquired a new position in MGE Energy in the second quarter worth approximately $496,897,000. Geode Capital Management LLC grew its position in MGE Energy by 0.4% in the fourth quarter. Geode Capital Management LLC now owns 921,952 shares of the utilities provider's stock worth $72,315,000 after acquiring an additional 3,692 shares in the last quarter. Bank of New York Mellon Corp acquired a new position in shares of MGE Energy during the 2nd quarter worth $27,087,000. Deprince Race & Zollo Inc. acquired a new position in shares of MGE Energy during the 1st quarter worth $21,418,000. Finally, Legal & General Group Plc acquired a new position in shares of MGE Energy during the 2nd quarter worth $15,443,000. 52.58% of the stock is owned by hedge funds and other institutional investors.

MGE Energy Stock Performance

MGEE opened at $70.06 on Monday. The stock's 50 day simple moving average is $78.42 and its 200-day simple moving average is $77.96. The company has a current ratio of 1.14, a quick ratio of 0.79 and a debt-to-equity ratio of 0.61. The stock has a market cap of $2.65 billion, a PE ratio of 17.21, a P/E/G ratio of 3.91 and a beta of 0.70. MGE Energy Inc. has a 1 year low of $68.01 and a 1 year high of $87.94.

MGE Energy (NASDAQ:MGEE - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The utilities provider reported $0.89 earnings per share for the quarter, topping analysts' consensus estimates of $0.77 by $0.12. The firm had revenue of $161.19 million for the quarter, compared to the consensus estimate of $166.37 million. MGE Energy had a net margin of 19.45% and a return on equity of 11.10%. Sell-side analysts forecast that MGE Energy Inc. will post 4.02 EPS for the current year.

MGE Energy Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st were issued a dividend of $0.5083 per share. The ex-dividend date of this dividend was Tuesday, September 1st. This is a positive change from MGE Energy's previous quarterly dividend of $0.4750. This represents a $2.03 dividend on an annualized basis and a yield of 2.9%. MGE Energy's dividend payout ratio (DPR) is presently 49.88%.

Analyst Ratings Changes

Several equities research analysts recently issued reports on MGEE shares. LADENBURG THALM/SH SH raised shares of MGE Energy from a "neutral" rating to a "buy" rating and set a $81.00 price objective for the company in a research note on Monday, June 8th. Weiss Ratings reissued a "hold (c)" rating on shares of MGE Energy in a research report on Wednesday, August 5th. Bank of America started coverage on MGE Energy in a report on Thursday. They set a "neutral" rating and a $76.00 target price on the stock. Morgan Stanley reduced their price target on MGE Energy from $74.00 to $71.00 and set an "underweight" rating for the company in a research report on Friday, September 18th. Finally, Wall Street Zen downgraded MGE Energy from a "hold" rating to a "sell" rating in a research note on Saturday, September 19th. One investment analyst has rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, MGE Energy presently has a consensus rating of "Hold" and an average price target of $76.00.

MGE Energy Company Profile

MGE Energy, Inc is a public utility holding company headquartered in Madison, Wisconsin. Its principal subsidiary, Madison Gas and Electric Company (MG&E), provides electric and natural gas service to residential, commercial and industrial customers in south-central Wisconsin.

The company's operations include generating, purchasing, transmitting and distributing electricity, as well as distributing natural gas. MGE Energy's generation portfolio includes renewable resources such as wind and solar, along with other generation and purchased-power arrangements.

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