NewJersey Resources Corporation (NYSE:NJR) Receives Average Recommendation of "Hold" from Brokerages

Key Points

• NewJersey Resources Corporation has received an average recommendation of "Hold" from six brokerages, with four hold ratings and two buy ratings, and an average target price of $51.43.
• The company recently announced a quarterly dividend increase to $0.475, which represents a 4.1% yield and will be paid on October 1st to investors of record on September 22nd.
• NewJersey Resources has experienced significant institutional interest, with hedge funds increasing their holdings and now owning 70.98% of the company’s stock.

Shares of NewJersey Resources Corporation (NYSE:NJR - Get Free Report) have earned a consensus recommendation of "Hold" from the six brokerages that are currently covering the stock, MarketBeat reports. Four investment analysts have rated the stock with a hold rating and two have issued a buy rating on the company. The average 1-year target price among analysts that have covered the stock in the last year is $51.4286.

Several research analysts have recently weighed in on NJR shares. JPMorgan Chase & Co. decreased their price target on NewJersey Resources from $56.00 to $51.00 and set an "overweight" rating for the company in a research note on Wednesday, May 28th. Raymond James Financial reissued an "outperform" rating and issued a $50.00 target price (up previously from $49.00) on shares of NewJersey Resources in a research report on Friday, August 8th. Finally, Wall Street Zen raised shares of NewJersey Resources from a "sell" rating to a "hold" rating in a report on Saturday, September 13th.

NewJersey Resources Stock Down 0.7%

Shares of NewJersey Resources stock opened at $46.58 on Tuesday. The company has a 50-day simple moving average of $46.68 and a two-hundred day simple moving average of $46.90. The stock has a market capitalization of $4.68 billion, a PE ratio of 11.39 and a beta of 0.67. NewJersey Resources has a 52-week low of $43.80 and a 52-week high of $51.94. The company has a debt-to-equity ratio of 1.25, a quick ratio of 0.48 and a current ratio of 0.76.

NewJersey Resources (NYSE:NJR - Get Free Report) last announced its quarterly earnings results on Monday, August 4th. The utilities provider reported $0.06 earnings per share for the quarter, beating the consensus estimate of ($0.06) by $0.12. The company had revenue of $298.95 million during the quarter, compared to the consensus estimate of $305.05 million. NewJersey Resources had a net margin of 19.64% and a return on equity of 17.08%. The firm's quarterly revenue was up 8.5% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.09) earnings per share. On average, analysts anticipate that NewJersey Resources will post 3.15 EPS for the current fiscal year.

NewJersey Resources Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Monday, September 22nd will be issued a $0.475 dividend. This is an increase from NewJersey Resources's previous quarterly dividend of $0.45. This represents a $1.90 annualized dividend and a yield of 4.1%. The ex-dividend date is Monday, September 22nd. NewJersey Resources's dividend payout ratio is 44.01%.

Hedge Funds Weigh In On NewJersey Resources

Institutional investors and hedge funds have recently modified their holdings of the company. Orion Porfolio Solutions LLC increased its position in NewJersey Resources by 50.9% during the second quarter. Orion Porfolio Solutions LLC now owns 6,866 shares of the utilities provider's stock valued at $308,000 after acquiring an additional 2,315 shares during the last quarter. Squarepoint Ops LLC grew its stake in shares of NewJersey Resources by 348.3% during the 2nd quarter. Squarepoint Ops LLC now owns 123,816 shares of the utilities provider's stock valued at $5,549,000 after purchasing an additional 96,195 shares during the period. B. Riley Wealth Advisors Inc. purchased a new stake in shares of NewJersey Resources during the 2nd quarter valued at about $244,000. Advisory Services Network LLC lifted its stake in shares of NewJersey Resources by 16.5% in the 2nd quarter. Advisory Services Network LLC now owns 53,597 shares of the utilities provider's stock worth $2,461,000 after purchasing an additional 7,580 shares during the period. Finally, Kestra Investment Management LLC boosted its holdings in shares of NewJersey Resources by 62.1% in the second quarter. Kestra Investment Management LLC now owns 24,881 shares of the utilities provider's stock worth $1,115,000 after buying an additional 9,531 shares during the last quarter. 70.98% of the stock is currently owned by hedge funds and other institutional investors.

NewJersey Resources Company Profile

New Jersey Resources Corporation, an energy services holding company, distributes natural gas. The company operates through four segments: Natural Gas Distribution, Clean Energy Ventures, Energy Services, and Storage and Transportation. The Natural Gas Distribution segment offers regulated natural gas utility services to approximately 576,000 customers in Burlington, Middlesex, Monmouth, Morris, Ocean, and Sussex counties in New Jersey; provides capacity and storage management services; and participates in the off-system sales and capacity release markets.

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