Guggenheim has recently reduced Nextera Energy Partners LP (NEP) stock to Neutral rating, as announced on October 28, 2024, according to Finviz. Earlier, on October 24, 2024, JP Morgan had raised the stock from a Underweight to Neutral, setting a price target of $22 for NEP stock. Exane BNP Paribas also initiated Underperform rating with a price target of $15. Additionally, Jefferies initiated Buy rating on September 19, 2024, with a target price of $28. Morgan Stanley analysts, in their report published on July 31, 2024, also reduced rating and set a price target of $31 for Nextera Energy Partners LP’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
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Nextera Energy Partners LP (NEP) Stock Trading Recap
On Monday, Nextera Energy Partners LP (NEP) stock saw a decline, ending the day at $17.29 which represents a decrease of $-0.21 or -1.20% from the prior close of $17.5. The stock opened at $17.48 and touched a low of $17.07 during the day, reaching a high of $17.75. The volume of shares traded was 2.64 million exceeding the average volume of 1.67 million.
NEP Stock Performance and Moving Averages
In recent trading, Nextera Energy Partners LP (NEP) stock price has shown some volatility, fluctuating -14.36% over the last five trades and -31.50% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -44.85%, and it has plunged by -31.58% in the previous three months. Currently, NEP is trading at -19.12%, -28.15%, and -36.89% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, NEP, a Utilities sector stock, is trading -50.81% below its 52-week high but remains -0.12% above its 52-week low. The Average True Range (ATR) (14 days) of 0.97 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Nextera Energy Partners LP’s Profitability and Valuation Ratios
Nextera Energy Partners LP’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 0.78% and a profit margin of 17.74%, with a gross margin of -44.85%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Nextera Energy Partners LP’s market capitalization stands at $3.10 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 7.92, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 7.16. Additionally, the Price-to-Sales Ratio is 2.69, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 0.47, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 2.79% of Nextera Energy Partners LP (NEP)’s shares, while financial institutions hold 61.08%.
