Entergy Corp (NYSE:ETR) CEO Andrew Marsh executed a sale of 19,200 shares of company stock on August 30, 2024, for a total value exceeding $2.3 million. The transactions were carried out under a prearranged trading plan and reported in a recent filing with the Securities and Exchange Commission.
Marsh sold the shares at a weighted average price of $120.35, with individual sales ranging from $120.00 to $120.87 per share. Following the sale, the CEO still holds a significant stake in the company, with 150,731 shares directly owned, in addition to 1,147 shares held indirectly through a 401(k) plan.
The same filing also disclosed an acquisition of 19,200 shares by Marsh at a price of $89.9 per share, amounting to a total of approximately $1.7 million. This transaction was related to the exercise of employee stock options that were set to expire in January 2025.
These transactions are part of a planned trading strategy, known as a Rule 10b5-1 trading plan, which was adopted by Marsh on May 6, 2024. Such plans allow company insiders to establish predetermined trading arrangements for buying or selling stocks at a future date, providing a defense against potential claims of insider trading.
Entergy Corporation (NYSE:ETR), headquartered in New Orleans, Louisiana, is an integrated energy company engaged primarily in electric power production and retail distribution operations. Investors and stakeholders often monitor the trading activity of insiders like Marsh for insights into executive confidence and company performance.
In other recent news, Entergy Corporation reported significant developments in its financial and operational performance. The company's second-quarter operating earnings per share (EPS) of $1.92 surpassed both BMO Capital's estimate of $1.70 and the consensus estimate of $1.76. This robust performance led BMO Capital Markets to raise its price target for Entergy to $131 from $124, maintaining an Outperform rating on the stock.
Evercore ISI also increased its price target for Entergy to $120 from $103, citing potential industrial opportunities, including the growth of data centers and large projects in the Gulf region. The extension of the Louisiana formula rate plan (FRP) is expected to provide more certainty around nearly 40% of Entergy's three-year capital plan. However, Evercore ISI acknowledged that storms present a primary risk to the company's operational and financial stability.
Entergy confirmed its adjusted EPS guidance for 2024, indicating a positive financial trajectory. The company also reported a strong net liquidity of $5.9 billion. These recent developments underscore Entergy's commitment to capital investment and resilience, which are expected to contribute to an above-average EPS growth outlook.
InvestingPro Insights
Entergy Corporation (NYSE:ETR) has been navigating the market with a blend of stability and strategic financial management. The company's commitment to shareholder value is evident through its consistent dividend payments, having maintained them for an impressive 37 consecutive years. This dedication is further reflected in the fact that Entergy has raised its dividend for 9 straight years, showcasing a reliable income stream for investors.
On the financial front, Entergy's market capitalization stands at $26.16 billion, underscoring its significant presence in the industry. Moreover, the company's P/E ratio is currently at 14.61, which is considered low relative to its near-term earnings growth, as indicated by an adjusted P/E ratio of 11.82 for the last twelve months as of Q2 2024. This suggests that the stock may be undervalued in terms of its earnings potential. Additionally, the company has demonstrated a gross profit margin of 45.64% over the same period, emphasizing its ability to maintain profitability.
It's also worth noting that Entergy's stock is trading near its 52-week high, with the price at 99.03% of this peak, reflecting strong investor confidence. With analysts predicting that the company will remain profitable this year, it's clear that Entergy is poised to continue its solid performance.
Investors looking for more detailed analysis and additional InvestingPro Tips can find them at Investing.com/pro/ETR. As of now, there are 11 more InvestingPro Tips available, offering deeper insights into Entergy's financial health and market position.
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