South Street Advisors LLC Acquires New Shares in Spire Inc. $SR

Key Points

• South Street Advisors LLC opened a new position in Spire during the fourth quarter, buying 183,953 shares valued at about $15.2 million. The stake represented about 2.1% of the firm’s portfolio.
• Spire’s latest quarterly results beat earnings expectations, posting $3.76 EPS versus the $3.72 consensus, though revenue of $1.02 billion came in below estimates. Revenue still rose 4.5% year over year.
• The company announced a quarterly dividend of $0.825 per share, or $3.30 annualized, implying a 3.9% yield. Analysts currently have a consensus rating of Moderate Buy with a $96.22 target price.

South Street Advisors LLC purchased a new position in shares of Spire Inc. (NYSE:SR - Free Report) during the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm purchased 183,953 shares of the utilities provider's stock, valued at approximately $15,213,000. Spire accounts for about 2.1% of South Street Advisors LLC's investment portfolio, making the stock its 22nd biggest holding. South Street Advisors LLC owned 0.31% of Spire at the end of the most recent quarter.

A number of other hedge funds have also modified their holdings of SR. Community Bank N.A. bought a new position in Spire in the third quarter valued at $25,000. Sound Income Strategies LLC bought a new position in Spire in the fourth quarter valued at $25,000. Optima Capital LLC bought a new position in Spire in the fourth quarter valued at $25,000. Smartleaf Asset Management LLC grew its stake in Spire by 186.8% in the third quarter. Smartleaf Asset Management LLC now owns 370 shares of the utilities provider's stock valued at $30,000 after purchasing an additional 241 shares in the last quarter. Finally, Headlands Technologies LLC bought a new position in Spire in the second quarter valued at approximately $38,000. 87.36% of the stock is currently owned by institutional investors.

Spire Trading Down 2.2%

SR opened at $83.75 on Friday. Spire Inc. has a 1-year low of $71.24 and a 1-year high of $95.31. The company has a current ratio of 0.55, a quick ratio of 0.48 and a debt-to-equity ratio of 1.69. The company has a market cap of $4.95 billion, a P/E ratio of 14.72, a price-to-earnings-growth ratio of 1.92 and a beta of 0.56. The company has a fifty day moving average price of $89.65 and a two-hundred day moving average price of $87.43.

Spire (NYSE:SR - Get Free Report) last posted its quarterly 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 firm had revenue of $1.02 billion during the quarter, compared to the consensus estimate of $1.07 billion. Spire had a net margin of 13.97% and a return on equity of 9.49%. The business's revenue was up 4.5% compared to the same quarter last year. During the same period in the previous year, the firm posted $3.60 earnings per share. Analysts predict that Spire Inc. will post 4 EPS for the current fiscal year.

Spire Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, July 2nd. Shareholders of record on Thursday, June 11th will be given a $0.825 dividend. This represents a $3.30 dividend on an annualized basis and a yield of 3.9%. The ex-dividend date of this dividend is Thursday, June 11th. Spire's dividend payout ratio is presently 58.00%.

Analyst Upgrades and Downgrades

SR has been the subject of several recent research reports. Wolfe Research initiated coverage on Spire in a research note on Tuesday. They issued a "peer perform" rating for the company. Wells Fargo & Company initiated coverage on Spire in a research note on Monday, May 11th. They issued an "overweight" rating and a $96.00 price target for the company. UBS Group reduced their price target on Spire from $106.00 to $103.00 and set a "buy" rating for the company in a research note on Friday, May 8th. Morgan Stanley set a $96.00 price target on Spire in a research note on Thursday, May 21st. Finally, TD Cowen assumed coverage on shares of Spire in a report on Thursday, April 16th. They issued a "hold" rating and a $101.00 price objective for the company. Two research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $96.22.

Insider Transactions at Spire

In other news, Director Paul D. Koonce acquired 2,000 shares of Spire stock in a transaction on Friday, May 8th. The stock was acquired at an average cost of $85.81 per share, with a total value of $171,620.00. Following the transaction, the director owned 7,000 shares of the company's stock, valued at approximately $600,670. This trade represents a 40.00% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 2.26% of the company's stock.

About Spire

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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