Portland General Electric Company (NYSE:POR) Given Consensus Recommendation of "Reduce" by Analysts

Key Points

• Analysts are cautious on Portland General Electric, with the stock carrying an average “Reduce” recommendation from 10 covering firms. The consensus 1-year price target is $51, slightly below the recent trading level.
• Recent earnings missed expectations, as PGE reported $0.58 EPS versus the $0.77 consensus estimate and revenue of $879 million versus $953.24 million expected. Revenue also fell 5.3% year over year.
• The company raised its quarterly dividend to $0.5513 per share, or $2.21 annually, for a 4.2% yield. However, the dividend payout ratio is high at 98.21%, which may limit flexibility.

Shares of Portland General Electric Company (NYSE:POR - Get Free Report) have been given an average recommendation of "Reduce" by the ten research firms that are presently covering the stock, Marketbeat.com reports. Two research analysts have rated the stock with a sell rating, seven have given a hold rating and one has assigned a buy rating to the company. The average 1-year price objective among analysts that have issued a report on the stock in the last year is $51.00.

POR has been the topic of several research analyst reports. Zacks Research cut shares of Portland General Electric from a "hold" rating to a "strong sell" rating in a research note on Monday. Weiss Ratings reiterated a "hold (c+)" rating on shares of Portland General Electric in a research note on Friday, May 15th. JPMorgan Chase & Co. boosted their price objective on shares of Portland General Electric from $51.00 to $54.00 and gave the company a "neutral" rating in a report on Monday, April 20th. Finally, Wells Fargo & Company set a $51.00 price objective on shares of Portland General Electric in a research report on Tuesday, April 21st.

Portland General Electric Stock Down 0.5%

Portland General Electric stock opened at $52.31 on Thursday. Portland General Electric has a 12 month low of $39.73 and a 12 month high of $54.62. The stock has a fifty day simple moving average of $50.27 and a two-hundred day simple moving average of $50.89. The company has a current ratio of 1.09, a quick ratio of 0.95 and a debt-to-equity ratio of 1.19. The firm has a market cap of $6.05 billion, a price-to-earnings ratio of 23.35, a PEG ratio of 2.20 and a beta of 0.52.

Portland General Electric (NYSE:POR - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The utilities provider reported $0.58 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.77 by ($0.19). Portland General Electric had a net margin of 7.12% and a return on equity of 7.57%. The business had revenue of $879.00 million for the quarter, compared to the consensus estimate of $953.24 million. During the same period in the previous year, the company earned $0.91 earnings per share. The company's revenue for the quarter was down 5.3% compared to the same quarter last year. Equities analysts predict that Portland General Electric will post 3.39 EPS for the current fiscal year.

Portland General Electric Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Thursday, June 25th will be paid a dividend of $0.5513 per share. The ex-dividend date is Thursday, June 25th. This represents a $2.21 dividend on an annualized basis and a yield of 4.2%. This is a boost from Portland General Electric's previous quarterly dividend of $0.53. Portland General Electric's dividend payout ratio (DPR) is presently 98.21%.

Key Headlines Impacting Portland General Electric

Here are the key news stories impacting Portland General Electric this week:

• Positive Sentiment: Oregon regulators approved a new rate structure that raises electricity costs for data centers while slightly lowering bills for other customers, which could improve Portland General Electric’s revenue mix and reduce pressure to subsidize large power users. Oregon regulators hike power rates for data centers
• Positive Sentiment: Regulators also approved a 29% rate increase for Oregon data centers in PGE’s service territory, another sign that pricing may become more favorable for the utility’s earnings prospects. Regulators approve PGE’s 29% rate increase for Oregon data centers
• Neutral Sentiment: Portland backed PGE’s plan to cut more than 370 trees in Forest Park to make room for power lines, clearing a major hurdle for the project but also keeping public scrutiny and criticism in the spotlight. Portland backs new agreement clearing way for PGE Forest Park project
• Neutral Sentiment: Investors also saw another local report on the Forest Park agreement, which supports project execution but may carry reputational and permitting risk. Portland approves PGE plan to cut trees in Forest Park for power lines
• Negative Sentiment: Zacks Research downgraded Portland General Electric from “hold” to “strong sell,” which could weigh on sentiment around the stock. Portland General Electric was downgraded by Zacks Research

Insider Activity

In other news, Director Robert N. Hoglund purchased 2,000 shares of the stock in a transaction dated Monday, May 11th. The shares were purchased at an average cost of $48.80 per share, with a total value of $97,600.00. Following the acquisition, the director directly owned 2,519 shares of the company's stock, valued at $122,927.20. This represents a 385.36% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, VP Juan Diego Gallegos sold 2,750 shares of Portland General Electric stock in a transaction on Friday, May 8th. The stock was sold at an average price of $48.67, for a total value of $133,842.50. Following the completion of the sale, the vice president directly owned 12,127 shares of the company's stock, valued at $590,221.09. The trade was a 18.48% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 0.52% of the company's stock.

Institutional Investors Weigh In On Portland General Electric

Several hedge funds and other institutional investors have recently added to or reduced their stakes in POR. Vanguard Group Inc. lifted its holdings in Portland General Electric by 4.1% during the fourth quarter. Vanguard Group Inc. now owns 13,020,573 shares of the utilities provider's stock valued at $624,857,000 after purchasing an additional 513,517 shares in the last quarter. State Street Corp increased its stake in shares of Portland General Electric by 3.4% in the fourth quarter. State Street Corp now owns 4,728,784 shares of the utilities provider's stock worth $229,333,000 after purchasing an additional 156,164 shares in the last quarter. Clearbridge Investments LLC raised its position in shares of Portland General Electric by 1,342.7% during the 4th quarter. Clearbridge Investments LLC now owns 4,643,134 shares of the utilities provider's stock valued at $222,824,000 after purchasing an additional 4,321,305 shares during the period. AQR Capital Management LLC raised its position in shares of Portland General Electric by 42.2% during the 4th quarter. AQR Capital Management LLC now owns 3,551,731 shares of the utilities provider's stock valued at $170,448,000 after purchasing an additional 1,054,450 shares during the period. Finally, Geode Capital Management LLC lifted its stake in shares of Portland General Electric by 2.7% during the 4th quarter. Geode Capital Management LLC now owns 2,805,796 shares of the utilities provider's stock valued at $134,680,000 after buying an additional 73,185 shares in the last quarter.

About Portland General Electric

Portland General Electric NYSE: POR is an investor-owned electric utility headquartered in Tigard, Oregon, with roots tracing back to the late 19th century. The company generates, transmits and distributes electricity to residential, commercial and industrial customers across a broad territory in Oregon, primarily encompassing the Portland metropolitan area and surrounding regions.

As one of Oregon's largest electric utilities, Portland General Electric operates a diverse portfolio of generation assets, including hydroelectric facilities, natural gas–fired plants and renewable energy sources.

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