Public Service Enterprise Group (NYSE:PEG) Hits New 1-Year Low Following Analyst Downgrade

Key Points

• Public Service Enterprise Group shares hit a new 52-week low of $69.72 after Morgan Stanley cut its price target from $91 to $88, although it maintained an overweight rating.
• Analyst sentiment is broadly cautious: PEG has an average rating of “Hold” and an average price target of $89.23, while several firms recently lowered their targets.
• The company beat quarterly EPS estimates ($0.86 versus $0.80) but reported an 8.9% year-over-year revenue decline. It also announced a quarterly dividend of $0.67 per share, representing a 3.8% yield.

Public Service Enterprise Group Incorporated (NYSE:PEG - Get Free Report)'s share price reached a new 52-week low on Monday after Morgan Stanley lowered their price target on the stock from $91.00 to $88.00. Morgan Stanley currently has an overweight rating on the stock. Public Service Enterprise Group traded as low as $69.72 and last traded at $69.8510, with a volume of 7509439 shares traded. The stock had previously closed at $69.77.

Several other research firms also recently weighed in on PEG. Wells Fargo & Company decreased their price target on shares of Public Service Enterprise Group from $91.00 to $89.00 and set an "overweight" rating on the stock in a research report on Wednesday, August 5th. Jefferies Financial Group cut their price target on Public Service Enterprise Group from $89.00 to $78.00 and set a "hold" rating for the company in a report on Monday, July 20th. Citigroup reduced their target price on shares of Public Service Enterprise Group from $91.00 to $84.00 and set a "neutral" rating for the company in a report on Wednesday, August 5th. Royal Bank Of Canada started coverage on shares of Public Service Enterprise Group in a research note on Thursday, July 2nd. They set a "sector perform" rating and a $81.00 target price on the stock. Finally, Wall Street Zen downgraded shares of Public Service Enterprise Group from a "hold" rating to a "sell" rating in a report on Saturday, August 15th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and ten have given a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and an average target price of $89.23.

Insider Activity

In related news, COO Kim C. Hanemann sold 3,035 shares of the stock in a transaction that occurred on Wednesday, June 24th. The stock was sold at an average price of $82.00, for a total transaction of $248,870.00. Following the completion of the transaction, the chief operating officer directly owned 98,815 shares of the company's stock, valued at approximately $8,102,830. This represents a 2.98% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Ralph A. Larossa sold 2,083 shares of the firm's stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $76.47, for a total value of $159,287.01. Following the transaction, the chief executive officer owned 283,656 shares of the company's stock, valued at $21,691,174.32. This represents a 0.73% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 15,201 shares of company stock worth $1,172,339 over the last 90 days. Corporate insiders own 0.19% of the company's stock.

Hedge Funds Weigh In On Public Service Enterprise Group

Institutional investors and hedge funds have recently made changes to their positions in the business. Westfuller Advisors LLC lifted its position in Public Service Enterprise Group by 7.3% during the first quarter. Westfuller Advisors LLC now owns 1,891 shares of the utilities provider's stock valued at $153,000 after acquiring an additional 129 shares during the last quarter. Key Financial Inc increased its position in shares of Public Service Enterprise Group by 2.6% during the fourth quarter. Key Financial Inc now owns 5,221 shares of the utilities provider's stock worth $419,000 after purchasing an additional 133 shares in the last quarter. CFS Investment Advisory Services LLC lifted its holdings in shares of Public Service Enterprise Group by 1.0% during the 4th quarter. CFS Investment Advisory Services LLC now owns 13,296 shares of the utilities provider's stock valued at $1,068,000 after purchasing an additional 138 shares during the last quarter. Y.D. More Investments Ltd lifted its holdings in shares of Public Service Enterprise Group by 22.5% during the 1st quarter. Y.D. More Investments Ltd now owns 866 shares of the utilities provider's stock valued at $70,000 after purchasing an additional 159 shares during the last quarter. Finally, Ignite Planners LLC boosted its position in shares of Public Service Enterprise Group by 3.8% in the 4th quarter. Ignite Planners LLC now owns 4,434 shares of the utilities provider's stock worth $365,000 after purchasing an additional 161 shares in the last quarter. 73.34% of the stock is owned by hedge funds and other institutional investors.

Public Service Enterprise Group Price Performance

The stock has a 50-day moving average price of $75.34 and a two-hundred day moving average price of $78.73. The company has a current ratio of 0.88, a quick ratio of 0.67 and a debt-to-equity ratio of 1.31. The stock has a market cap of $34.81 billion, a price-to-earnings ratio of 17.38, a PEG ratio of 2.63 and a beta of 0.50.

Public Service Enterprise Group (NYSE:PEG - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The utilities provider reported $0.86 EPS for the quarter, beating analysts' consensus estimates of $0.80 by $0.06. Public Service Enterprise Group had a return on equity of 12.42% and a net margin of 16.04%.The company had revenue of $2.55 billion during the quarter, compared to analysts' expectations of $2.66 billion. During the same period last year, the business posted $0.77 earnings per share. The firm's revenue was down 8.9% compared to the same quarter last year. Public Service Enterprise Group has set its FY 2026 guidance at 4.280-4.400 EPS. As a group, equities research analysts forecast that Public Service Enterprise Group Incorporated will post 4.36 EPS for the current year.

Public Service Enterprise Group Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Wednesday, September 9th will be given a dividend of $0.67 per share. This represents a $2.68 annualized dividend and a yield of 3.8%. The ex-dividend date of this dividend is Wednesday, September 9th. Public Service Enterprise Group's payout ratio is currently 66.67%.

About Public Service Enterprise Group

Public Service Enterprise Group Incorporated NYSE: PEG is an energy company headquartered in Newark, New Jersey. Through its principal subsidiary, Public Service Electric and Gas Company (PSE&G), it provides regulated electric and natural gas transmission, distribution and delivery services to residential, commercial and industrial customers, primarily in New Jersey.

PSEG also owns PSEG Power, which operates and manages a diverse portfolio of electric-generating facilities, including nuclear, natural gas and renewable energy assets.

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