In a series of transactions, Daniel J. Nova, serving as a Trustee, engaged in the buying and selling of Eversource Energy (NYSE:ES) stock, with total sales amounting to $45,405 and purchases totaling $38,681. The trading activity, reported in a recent SEC filing, included transactions where the stock was sold at prices ranging from $53.43 to $72.83 and bought at prices between $54.12 and $71.29.
The SEC Form 4 filing details several transactions conducted through family trusts and a family limited liability company in which Nova holds management roles. Notably, the shares involved in these transactions were held in discretionary brokerage accounts, with trades made without Nova's knowledge. These accounts were previously omitted from Nova's initial Form 3 filing and subsequent Section 16 filings, an oversight that has since been corrected.
The transactions involved the sale of Eversource Energy common shares at various prices and on different dates, with the highest sale price per share at $72.83 and the lowest at $53.43. On the buying side, Nova acquired shares at prices ranging from $54.12 to $71.29. These transactions reflect a common practice among executives and trustees to adjust their holdings in the companies they manage.
In an interesting turn of events, the filing also mentions that Nova realized short-swing profits from these trades. Under Section 16(b) of the Securities Exchange Act of 1934, any profits gained from purchase and sale or sale and purchase of company stock within a six-month period must be returned to the company. Accordingly, Nova has voluntarily disgorged all short-swing profits, amounting to $4,326, back to Eversource Energy.
The filing was signed on behalf of Nova by attorney-in-fact Kerry J. Tomasevich on September 9, 2024, affirming the accuracy and completeness of the reported information. Investors and the market at large often scrutinize such filings for insights into executives' confidence in their company's prospects and for signs of potential strategic moves.
In other recent news, Eversource Energy has experienced a series of significant developments. BMO Capital Markets recently revised the company's stock outlook, reducing the price target from $73.00 to $70.00 due to a delay in the Revolution Wind offshore wind project, a venture in which Eversource is a partner. The delay, caused by additional work at the project's onshore substation, has led to an anticipated delay in revenue recognition for Eversource, expected to impact the company's financials.
However, Eversource also reported notable earnings and revenue results, matching analysts' expectations with earnings per share (EPS) of $0.95 in the second quarter. Following these results, BMO Capital raised Eversource's stock price target from $69.00 to $73.00.
Moreover, Eversource has been making significant investments in transmission and distribution infrastructure, with $6 billion earmarked for transmission over the next five years. The company has also completed the sale of the Sunrise Wind Project and expects to finalize additional wind project sales in the next quarter. Furthermore, Eversource's Massachusetts AMI program is moving forward, with smart meter installations set to begin next year.
Despite challenges in the Water Distribution segment and uncertainties in equity needs, Eversource remains confident in achieving its EPS growth rate through 2028. These recent developments underline Eversource's strategic focus on regulated utility growth and its commitment to modernization and environmental goals.
InvestingPro Insights
The recent SEC filings revealing Daniel J. Nova's transactions in Eversource Energy (NYSE:ES) stock provide a glimpse into insider trading activities. As investors assess the implications of these trades, they may also consider the broader financial health and market performance of Eversource Energy. According to InvestingPro data, Eversource Energy has a market capitalization of $24.26 billion and a high dividend yield of 4.24%, reflecting a consistent history of dividend payments, as the company has maintained dividend payments for 26 consecutive years. This could signal a commitment to shareholder returns amidst market fluctuations.
Despite a negative revenue growth rate over the last twelve months as of Q2 2024, with a decrease of 10.41%, Eversource Energy has managed to maintain a robust gross profit margin of 46.07%. This suggests that the company is still able to effectively manage its cost of goods sold and maintain profitability at the gross level. Moreover, the company's stock has experienced a strong return over the last three months, with a total return of 15.06%, trading near its 52-week high at 98.22% of that value. This level of price stability, as indicated by the company's low price volatility, could be a reassuring factor for investors looking for steady performance in their portfolio.
For those interested in further analysis and details on Eversource Energy's financials and stock performance, InvestingPro offers additional insights. With a total of nine InvestingPro Tips available, including expectations of net income growth this year and a prediction of profitability, investors can delve deeper into the company's prospects. For more detailed tips, visit InvestingPro's Eversource Energy page.
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