Sempra Energy (NYSE:SRE) Lowered to "Sell" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Sempra Energy from “hold” to “sell,” even as several other analysts remain constructive on the stock. The current consensus from MarketBeat is still “Moderate Buy” with an average price target of $102.67.
• Q1 earnings came in mixed: adjusted EPS of $1.51 matched expectations and was up from $1.44 a year earlier, but revenue missed estimates at about $3.66 billion versus $4.10 billion expected. The company also said weaker natural gas sales and softer California utility revenue weighed on results.
• Future guidance was below consensus, with Sempra guiding FY 2026 EPS to $4.87-$5.37 and FY 2027 EPS to $5.10-$5.70. That cautious outlook may be pressuring the stock more than the near-term earnings beat.

Sempra Energy (NYSE:SRE - Get Free Report) was downgraded by analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued on Sunday.

Other equities analysts have also recently issued reports about the company. Wells Fargo & Company reissued an "overweight" rating and set a $118.00 price target on shares of Sempra Energy in a report on Tuesday, April 21st. Barclays reaffirmed an "overweight" rating and issued a $105.00 price objective (up from $95.00) on shares of Sempra Energy in a research note on Wednesday, April 15th. JPMorgan Chase & Co. lifted their target price on Sempra Energy from $98.00 to $106.00 and gave the company an "overweight" rating in a research note on Wednesday, March 18th. Argus raised Sempra Energy from a "hold" rating to a "buy" rating in a report on Wednesday, March 4th. Finally, Weiss Ratings restated a "hold (c+)" rating on shares of Sempra Energy in a research note on Monday, April 20th. Two equities research analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $102.67.

Sempra Energy Stock Down 0.0%

SRE opened at $91.55 on Friday. The company has a quick ratio of 1.57, a current ratio of 1.69 and a debt-to-equity ratio of 0.78. The firm has a 50 day moving average price of $95.10 and a 200-day moving average price of $92.01. Sempra Energy has a twelve month low of $73.06 and a twelve month high of $101.04. The stock has a market capitalization of $59.81 billion, a price-to-earnings ratio of 31.03, a PEG ratio of 3.43 and a beta of 0.60.

Sempra Energy (NYSE:SRE - Get Free Report) last issued its earnings results on Thursday, May 7th. The utilities provider reported $1.51 earnings per share (EPS) for the quarter, hitting the consensus estimate of $1.51. Sempra Energy had a net margin of 14.31% and a return on equity of 8.20%. The company had revenue of $3.66 billion for the quarter, compared to analysts' expectations of $4.10 billion. During the same quarter last year, the company posted $1.44 earnings per share. The firm's quarterly revenue was down 3.9% on a year-over-year basis. Sempra Energy has set its FY 2027 guidance at 5.100-5.700 EPS and its FY 2026 guidance at 4.870-5.370 EPS. Equities research analysts forecast that Sempra Energy will post 5.11 earnings per share for the current year.

Insider Activity at Sempra Energy

In related news, Director Jennifer M. Kirk purchased 1,000 shares of the stock in a transaction that occurred on Thursday, March 12th. The stock was bought at an average cost of $93.44 per share, for a total transaction of $93,440.00. Following the completion of the transaction, the director directly owned 1,000 shares in the company, valued at $93,440. This represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Richard J. Mark acquired 2,692 shares of the company's stock in a transaction on Wednesday, March 11th. The shares were purchased at an average cost of $93.30 per share, with a total value of $251,163.60. Following the completion of the purchase, the director directly owned 17,376 shares of the company's stock, valued at $1,621,180.80. This trade represents a 18.33% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last ninety days, insiders have bought 6,192 shares of company stock worth $576,979 and have sold 7,539 shares worth $706,906. 0.31% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Sempra Energy

A number of large investors have recently made changes to their positions in the company. PNC Financial Services Group Inc. lifted its stake in Sempra Energy by 2.3% in the first quarter. PNC Financial Services Group Inc. now owns 122,569 shares of the utilities provider's stock worth $11,910,000 after purchasing an additional 2,793 shares during the last quarter. Oslo Pensjonsforsikring AS bought a new position in shares of Sempra Energy during the first quarter valued at approximately $265,000. Cassaday & Co Wealth Management LLC bought a new position in shares of Sempra Energy during the first quarter valued at approximately $89,000. Meeder Advisory Services Inc. raised its holdings in shares of Sempra Energy by 7.2% in the first quarter. Meeder Advisory Services Inc. now owns 16,294 shares of the utilities provider's stock worth $1,583,000 after buying an additional 1,092 shares during the period. Finally, Dimensional Fund Advisors LP raised its holdings in shares of Sempra Energy by 2.5% in the first quarter. Dimensional Fund Advisors LP now owns 2,096,382 shares of the utilities provider's stock worth $203,701,000 after buying an additional 52,107 shares during the period. 89.65% of the stock is owned by hedge funds and other institutional investors.

Sempra Energy News Summary

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

• Positive Sentiment: Sempra’s adjusted Q1 EPS of $1.51 matched estimates and improved from $1.44 a year ago, showing earnings growth despite a mixed operating backdrop. Sempra Reports First-Quarter 2026 Results
• Positive Sentiment: Oncor, Sempra’s Texas utility, reported higher first-quarter net income, supported by rate increases, customer growth, and infrastructure investments, which helps reinforce the company’s long-term growth story. Oncor Reports First Quarter 2026 Results
• Neutral Sentiment: Management and call coverage emphasized Sempra’s “massive growth plan,” suggesting continued capital investment and expansion, but with limited immediate detail in the available summaries. Sempra Energy Earnings Call Highlights Massive Growth Plan
• Negative Sentiment: Revenue missed expectations at $3.65 billion versus about $4.10 billion expected, and the company cited weaker natural gas sales and softer California utility revenue. Sempra narrowly misses profit estimates on lower sales
• Negative Sentiment: Full-year 2026 and 2027 EPS guidance came in below consensus, which is likely weighing on the stock more than the near-term earnings beat. Conference Call and Earnings Release

Sempra Energy Company Profile

Sempra Energy is a San Diego–based energy infrastructure company that develops, owns and operates businesses delivering electricity and natural gas. Its operations include regulated utility services that provide electric and gas distribution to residential, commercial and industrial customers, as well as non‑regulated infrastructure businesses that develop and manage large-scale energy assets.

The company's product and service portfolio spans electricity and natural gas delivery, transmission and storage, liquefied natural gas (LNG) facilities, power generation and electric transmission projects.

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