Hennessy Advisors Inc. has reduced its stake in Xcel Energy Inc. by 4.6% during the first quarter of this year, now holding 114,499 shares worth approximately $8.1 million after selling 5,500 shares. This change reflects a broader trend among institutional investors, with 78.38% of Xcel Energy’s stock now owned by hedge funds and other major investors.
Other institutional investors have also made moves regarding their stakes in Xcel Energy. Rothschild Investment LLC increased its holdings by 26% in the previous quarter, while GenTrust LLC and Creative Financial Designs Inc. ADV both raised their investments by 4.5% and 23.2%, respectively. These shifts indicate a strong interest in the company’s stock, which is experiencing a mix of ratings from analysts.
Analysts have varied opinions on Xcel Energy’s stock. Morgan Stanley set a price target of $78, emphasizing a balanced perspective with an “equal weight” rating. Conversely, Barclays and UBS Group have raised their targets to $73 and $77, giving the stock a more favorable outlook. Currently, Xcel Energy holds a consensus rating of “Moderate Buy,” with an average price target of $75.90.
Recent stock performance saw Xcel Energy trading down to $66.62, slightly below analysts’ estimates. The company’s quarterly earnings report highlighted a net margin of 14.40% with a return on equity of 10.65%, showing resilience despite a modest earnings miss. Xcel Energy has announced a dividend payout of $0.57, indicative of its commitment to returning value to shareholders.
As Xcel Energy continues to explore diverse energy sources, including renewables, the positive response from investors reflects confidence in its future performance and strategic direction. The company’s proactive approach could enhance its market position as the energy sector increasingly shifts towards sustainability.