NextEra Energy (NYSE:NEE) Stock Price Down 1% After Analyst Downgrade

Key Points

• NextEra Energy shares fell 1% after Mizuho cut its price target from $95 to $80 while maintaining a neutral rating. Despite the downgrade, analysts overall hold a “Moderate Buy” consensus with an average target of $98.95.
• The company’s outlook includes potential long-term growth from Project Star, a proposed $22 billion Texas energy campus with roughly 6.47 gigawatts of capacity. Investors also await third-quarter 2026 results on October 21.
• Key risks include regulatory opposition to the proposed NextEra-Dominion merger and ongoing shareholder derivative litigation, which could create delays, costs and additional uncertainty.

Shares of NextEra Energy, Inc. (NYSE:NEE - Get Free Report) were down 1% during mid-day trading on Wednesday after Mizuho lowered their price target on the stock from $95.00 to $80.00. Mizuho currently has a neutral rating on the stock. NextEra Energy traded as low as $76.50 and last traded at $77.0730. Approximately 10,597,533 shares traded hands during trading, a decline of 2% from the average daily volume of 10,798,762 shares. The stock had previously closed at $77.88.

Other analysts have also issued research reports about the company. Seaport Research Partners restated a "sell" rating and issued a $56.00 price objective (up from $55.00) on shares of NextEra Energy in a report on Friday, October 2nd. Barclays set a $91.00 target price on NextEra Energy and gave the stock an "equal weight" rating in a report on Tuesday, July 7th. Erste Group Bank cut shares of NextEra Energy from a "buy" rating to a "hold" rating in a research report on Thursday, June 25th. Morgan Stanley cut their price target on shares of NextEra Energy from $114.00 to $111.00 and set an "overweight" rating for the company in a report on Friday, September 18th. Finally, Scotiabank reduced their price objective on shares of NextEra Energy from $110.00 to $99.00 and set an "outperform" rating for the company in a research report on Wednesday, September 30th. Eighteen analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $98.95.

Key NextEra Energy News

Here are the key news stories impacting NextEra Energy this week:

• Positive Sentiment: NextEra, its affiliates and Lewis Energy Group were selected to develop Project Star, a planned energy campus in Encinal, Texas, valued at more than $22 billion. The project is expected to include approximately 6.47 gigawatts of generation capacity, potentially expanding NextEra’s long-term growth pipeline. However, the article provides limited detail on timing, financing and the company’s eventual economic share. NextEra $22 billion Project Star article
• Neutral Sentiment: NextEra will release third-quarter 2026 results before the market opens on October 21. Analysts expect a single-digit increase in earnings, making the report a near-term catalyst; investors will focus on earnings, revenue, guidance and updates on the company’s growth projects. NextEra third-quarter 2026 results announcement
• Negative Sentiment: Virginia Lieutenant Governor Ghazala Hashmi announced opposition to the proposed NextEra-Dominion merger as public hearings begin. Although NextEra said it respectfully disagrees, the opposition could increase regulatory uncertainty, delay approval or complicate the transaction. Virginia opposition to NextEra-Dominion merger
• Negative Sentiment: Mizuho lowered its NextEra price target from $95 to $80 and maintained a neutral rating. The reduced valuation signals weaker near-term confidence and leaves only modest implied upside based on the cited share price. Mizuho lowers NextEra price target
• Negative Sentiment: A proposed settlement of shareholder derivative actions is scheduled for court review in Palm Beach County. While a settlement could eventually resolve the matter, the proceedings add legal uncertainty and a potential cost overhang for investors. NextEra derivative action settlement notice

Institutional Trading of NextEra Energy

Hedge funds have recently bought and sold shares of the company. Legal & General Group Plc acquired a new position in NextEra Energy in the 2nd quarter worth approximately $1,465,987,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in NextEra Energy by 5.8% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 16,302,084 shares of the utilities provider's stock valued at $1,430,834,000 after purchasing an additional 895,824 shares during the period. Deutsche Bank AG raised its stake in NextEra Energy by 2.9% during the 4th quarter. Deutsche Bank AG now owns 17,281,357 shares of the utilities provider's stock valued at $1,387,347,000 after purchasing an additional 485,854 shares during the period. Amundi lifted its holdings in shares of NextEra Energy by 46.5% in the second quarter. Amundi now owns 13,329,077 shares of the utilities provider's stock valued at $1,169,839,000 after purchasing an additional 4,231,814 shares in the last quarter. Finally, Bessemer Group Inc. lifted its holdings in shares of NextEra Energy by 8.5% in the first quarter. Bessemer Group Inc. now owns 10,187,013 shares of the utilities provider's stock valued at $946,169,000 after purchasing an additional 799,546 shares in the last quarter. 78.72% of the stock is owned by hedge funds and other institutional investors.

NextEra Energy Trading Down 1.0%

The firm has a market cap of $160.77 billion, a price-to-earnings ratio of 17.32, a PEG ratio of 2.36 and a beta of 0.64. The company has a 50-day moving average price of $82.47 and a 200 day moving average price of $87.32. The company has a quick ratio of 0.44, a current ratio of 0.53 and a debt-to-equity ratio of 1.45.

NextEra Energy (NYSE:NEE - Get Free Report) last issued its quarterly earnings results on Friday, July 24th. The utilities provider reported $1.15 earnings per share for the quarter, beating analysts' consensus estimates of $1.11 by $0.04. The business had revenue of $7.53 billion for the quarter, compared to the consensus estimate of $8.11 billion. NextEra Energy had a return on equity of 12.28% and a net margin of 32.40%.NextEra Energy's revenue for the quarter was up 12.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.05 earnings per share. NextEra Energy has set its FY 2026 guidance at 3.920-4.020 EPS. As a group, research analysts anticipate that NextEra Energy, Inc. will post 4.01 earnings per share for the current fiscal year.

NextEra Energy Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Stockholders of record on Friday, August 28th were issued a $0.6232 dividend. The ex-dividend date was Friday, August 28th. This represents a $2.49 dividend on an annualized basis and a dividend yield of 3.2%. NextEra Energy's dividend payout ratio is currently 55.96%.

NextEra Energy Company Profile

NextEra Energy, Inc is an electric power and energy infrastructure company headquartered in Juno Beach, Florida. Through its principal subsidiary, Florida Power & Light Company (FPL), the company generates, transmits, distributes and sells electricity to customers across Florida. FPL serves residential, commercial and industrial customers and operates a diverse generation portfolio that includes natural gas, solar, nuclear and other resources.

NextEra Energy's other major business, NextEra Energy Resources, develops, owns and operates energy projects in the United States and Canada.

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