Investors Purchase Large Volume of Xcel Energy Call Options (NASDAQ:XEL)

Key Points

• Xcel Energy call-option activity surged: Traders purchased 3,781 call options, about 49% above the stock’s typical daily call volume.
• Analysts maintain a generally positive outlook, with the stock carrying an average “Buy” rating and an average price target of $91.65, compared with its trading price of $72.77.
• Xcel Energy reported quarterly EPS of $0.93, beating estimates of $0.79, and announced a quarterly dividend of $0.5925, representing a 3.3% annualized yield.

Xcel Energy Inc. (NASDAQ:XEL - Get Free Report) was the target of unusually large options trading activity on Wednesday. Stock traders acquired 3,781 call options on the stock. This is an increase of approximately 49% compared to the typical daily volume of 2,541 call options.

Analysts Set New Price Targets

Several analysts recently weighed in on XEL shares. Wall Street Zen raised Xcel Energy from a "sell" rating to a "hold" rating in a report on Saturday, September 26th. Truist Financial cut their price target on shares of Xcel Energy from $94.00 to $88.00 and set a "buy" rating on the stock in a report on Thursday, August 13th. Weiss Ratings raised shares of Xcel Energy from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday. Jefferies Financial Group set a $101.00 target price on shares of Xcel Energy in a research note on Tuesday, July 7th. Finally, New Street Research set a $91.00 price objective on shares of Xcel Energy in a research report on Tuesday, June 23rd. Three research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Buy" and an average target price of $91.65.

Hedge Funds Weigh In On Xcel Energy

Large investors have recently added to or reduced their stakes in the company. Evolution Wealth Management Inc. grew its holdings in shares of Xcel Energy by 365.3% in the 1st quarter. Evolution Wealth Management Inc. now owns 349 shares of the company's stock worth $28,000 after acquiring an additional 274 shares during the last quarter. Pin Oak Investment Advisors Inc. bought a new stake in shares of Xcel Energy in the second quarter valued at about $29,000. First Bancorp Inc ME acquired a new stake in Xcel Energy in the 2nd quarter worth about $36,000. Cedar Mountain Advisors LLC purchased a new stake in shares of Xcel Energy in the first quarter valued at about $39,000. Finally, Archer Investment Corp purchased a new position in shares of Xcel Energy in the second quarter worth approximately $40,000. 78.38% of the stock is currently owned by institutional investors.

Xcel Energy Price Performance

Shares of NASDAQ:XEL traded up $0.04 during trading on Wednesday, reaching $72.77. The stock had a trading volume of 946,164 shares, compared to its average volume of 5,243,237. The company has a debt-to-equity ratio of 1.49, a quick ratio of 0.62 and a current ratio of 0.70. The stock has a market cap of $45.46 billion, a PE ratio of 19.92, a PEG ratio of 2.42 and a beta of 0.36. Xcel Energy has a 1-year low of $68.72 and a 1-year high of $84.23. The business has a fifty day moving average price of $75.35 and a 200-day moving average price of $78.16.

Xcel Energy (NASDAQ:XEL - Get Free Report) last released its earnings results on Wednesday, July 29th. The company reported $0.93 EPS for the quarter, topping analysts' consensus estimates of $0.79 by $0.14. The business had revenue of $3.12 billion during the quarter, compared to analysts' expectations of $3.54 billion. Xcel Energy had a net margin of 15.28% and a return on equity of 10.65%. The company's quarterly revenue was down 5.1% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.59 earnings per share. On average, equities analysts forecast that Xcel Energy will post 4.12 earnings per share for the current fiscal year.

Xcel Energy Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, October 20th. Shareholders of record on Tuesday, September 15th will be given a $0.5925 dividend. The ex-dividend date is Tuesday, September 15th. This represents a $2.37 dividend on an annualized basis and a yield of 3.3%. Xcel Energy's dividend payout ratio is presently 64.93%.

About Xcel Energy

Xcel Energy Inc is a Minneapolis-based energy company that provides electricity and natural gas through regulated utility operations. Its businesses generate, transmit, distribute and sell electricity, as well as distribute natural gas to residential, commercial and industrial customers.

Through its operating companies, Xcel Energy serves customers in Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas and Wisconsin. The company's operations include a diverse generation portfolio featuring wind, solar, hydroelectric, nuclear, natural gas and other energy resources.

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