TXNM Energy (NYSE:TXNM) Announces Earnings Results

Key Points

• TXNM reported quarterly EPS of $0.21, missing estimates of $0.30, with revenue of $504.98 million slightly below expectations and up 4.6% year‑over‑year.
• The company declared a quarterly dividend of $0.4225 per share (annualized $1.69) for a 2.9% yield, but the dividend payout ratio is an elevated 115.75%, suggesting payouts exceed earnings.
• Shares traded near a 52‑week high around $59 and carry a high P/E of 40.6; analyst consensus is "Hold" (avg. target $60.88) but Wall Street Zen recently downgraded TXNM to "Sell," and institutional ownership is about 91.7%.

TXNM Energy (NYSE:TXNM - Get Free Report) posted its quarterly earnings results on Friday. The company reported $0.21 earnings per share for the quarter, missing analysts' consensus estimates of $0.30 by ($0.09), Briefing.com reports. TXNM Energy had a net margin of 7.27% and a return on equity of 7.54%. The company had revenue of $504.98 million during the quarter, compared to the consensus estimate of $506.24 million. During the same quarter in the prior year, the business earned $0.19 earnings per share. The firm's revenue for the quarter was up 4.6% compared to the same quarter last year.

TXNM Energy Stock Performance

NYSE:TXNM traded up $0.15 during mid-day trading on Friday, hitting $59.21. 1,958,952 shares of the stock were exchanged, compared to its average volume of 1,187,496. The stock has a market capitalization of $6.56 billion, a price-to-earnings ratio of 40.56, a price-to-earnings-growth ratio of 2.52 and a beta of 0.17. The firm's 50-day simple moving average is $58.83 and its 200 day simple moving average is $58.51. The company has a debt-to-equity ratio of 1.48, a quick ratio of 0.38 and a current ratio of 0.55. TXNM Energy has a fifty-two week low of $51.59 and a fifty-two week high of $59.52.

TXNM Energy Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, May 15th. Investors of record on Monday, April 27th will be issued a dividend of $0.4225 per share. This represents a $1.69 annualized dividend and a yield of 2.9%. The ex-dividend date of this dividend is Monday, April 27th. TXNM Energy's dividend payout ratio (DPR) is presently 115.75%.

Analyst Upgrades and Downgrades

Separately, Wall Street Zen cut TXNM Energy from a "hold" rating to a "sell" rating in a report on Saturday, April 25th. One research analyst has rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Hold" and an average price target of $60.88.

Institutional Trading of TXNM Energy

Several hedge funds have recently added to or reduced their stakes in TXNM. Federated Hermes Inc. increased its stake in shares of TXNM Energy by 3.3% in the 2nd quarter. Federated Hermes Inc. now owns 6,314 shares of the company's stock valued at $356,000 after purchasing an additional 199 shares during the last quarter. Bank of Montreal Can grew its position in TXNM Energy by 1.4% during the 4th quarter. Bank of Montreal Can now owns 15,804 shares of the company's stock worth $931,000 after acquiring an additional 219 shares during the last quarter. Smartleaf Asset Management LLC grew its position in TXNM Energy by 23.0% during the 4th quarter. Smartleaf Asset Management LLC now owns 1,262 shares of the company's stock worth $74,000 after acquiring an additional 236 shares during the last quarter. CIBC Private Wealth Group LLC grew its position in TXNM Energy by 20.1% during the 4th quarter. CIBC Private Wealth Group LLC now owns 1,857 shares of the company's stock worth $109,000 after acquiring an additional 311 shares during the last quarter. Finally, L2 Asset Management LLC grew its position in TXNM Energy by 6.8% during the 3rd quarter. L2 Asset Management LLC now owns 6,288 shares of the company's stock worth $356,000 after acquiring an additional 399 shares during the last quarter. 91.68% of the stock is owned by institutional investors and hedge funds.

TXNM Energy Company Profile

TXNM Energy, Inc, through its subsidiaries, provides electricity and electric services in the United States. It operates through Public Service Company of New Mexico (PNM) and Texas-New Mexico Power Company (TNMP) segments. The PNM segment engages in the generation, transmission, and distribution of electricity. The segment owns and leases communications, office and other equipment, office space, vehicles, and real estate. It generates electricity using coal, natural gas and oil, and nuclear fuel and waste, as well as solar, wind, geothermal, and battery storage energy sources.

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