MGE Energy (NASDAQ:MGEE) Sees Unusually-High Trading Volume - Time to Buy?

Key Points

• Unusually-high trading volume: About 527,002 shares changed hands (up 206% vs. the prior session) as the stock traded down roughly 7.6% intraday to $75.58 from a prior close of $80.80.
• Analyst stance: Consensus rating is "Reduce" with an average target of $80.50; two analysts rate the stock Hold and one rates it Sell, with recent notes including a Wall Street Zen upgrade to Hold and Morgan Stanley's Underweight.
• Fundamentals & insider activity: MGE beat Q1 estimates with $1.32 EPS vs. $1.13 expected and $242.7M revenue vs. $227.06M expected; the company has a $2.74B market cap, P/E of 19.14, ROE 11.06%, and a director recently bought 373 shares.

MGE Energy Inc. (NASDAQ:MGEE - Get Free Report) shares saw unusually-strong trading volume on Thursday . Approximately 527,002 shares changed hands during mid-day trading, an increase of 206% from the previous session's volume of 172,068 shares.The stock last traded at $75.5810 and had previously closed at $80.80.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on MGEE shares. Wall Street Zen upgraded MGE Energy from a "sell" rating to a "hold" rating in a research note on Sunday, March 8th. Morgan Stanley reissued an "underweight" rating on shares of MGE Energy in a research note on Monday, April 27th. Two equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, MGE Energy currently has a consensus rating of "Reduce" and an average target price of $80.50.

MGE Energy Trading Down 7.6%

The company has a debt-to-equity ratio of 0.61, a current ratio of 0.77 and a quick ratio of 0.55. The business's 50 day moving average is $78.45 and its 200 day moving average is $80.05. The stock has a market cap of $2.74 billion, a price-to-earnings ratio of 19.14 and a beta of 0.76.

MGE Energy (NASDAQ:MGEE - Get Free Report) last issued its earnings results on Tuesday, May 5th. The utilities provider reported $1.32 EPS for the quarter, topping analysts' consensus estimates of $1.13 by $0.19. The firm had revenue of $242.70 million during the quarter, compared to the consensus estimate of $227.06 million. MGE Energy had a net margin of 18.61% and a return on equity of 11.06%. As a group, equities analysts expect that MGE Energy Inc. will post 3.92 earnings per share for the current fiscal year.

Insider Activity at MGE Energy

In other news, Director James G. Berbee bought 373 shares of the stock in a transaction that occurred on Wednesday, March 11th. The stock was purchased at an average price of $77.74 per share, for a total transaction of $28,997.02. Following the completion of the purchase, the director owned 9,362 shares in the company, valued at approximately $727,801.88. This trade represents a 4.15% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 0.41% of the company's stock.

Hedge Funds Weigh In On MGE Energy

Institutional investors and hedge funds have recently modified their holdings of the company. Hantz Financial Services Inc. lifted its position in MGE Energy by 63.8% in the fourth quarter. Hantz Financial Services Inc. now owns 416 shares of the utilities provider's stock valued at $33,000 after acquiring an additional 162 shares during the last quarter. Advisory Services Network LLC purchased a new stake in MGE Energy in the third quarter valued at $40,000. eCIO Inc. purchased a new stake in MGE Energy in the fourth quarter valued at $45,000. Parallel Advisors LLC lifted its position in MGE Energy by 28.6% in the third quarter. Parallel Advisors LLC now owns 714 shares of the utilities provider's stock valued at $60,000 after acquiring an additional 159 shares during the last quarter. Finally, Covestor Ltd lifted its position in MGE Energy by 84.5% in the fourth quarter. Covestor Ltd now owns 878 shares of the utilities provider's stock valued at $69,000 after acquiring an additional 402 shares during the last quarter. Institutional investors and hedge funds own 52.58% of the company's stock.

About MGE Energy

MGE Energy, Inc is a public utility holding company headquartered in Madison, Wisconsin. Through its principal subsidiary, Madison Gas and Electric Company (MGE), the company provides regulated electric and natural gas distribution services to residential, commercial and industrial customers in south-central Wisconsin. MGE Energy's operations encompass the generation, transmission and distribution of electricity as well as the purchase and distribution of natural gas, with an emphasis on reliable service and system resilience.

Since reorganizing as a holding company in 2001, MGE Energy has expanded its portfolio to include nonregulated subsidiaries involved in renewable energy development, energy services and infrastructure support.

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