Zacks Investment Research Lowers DTE Energy (DTE) to Hold

Zacks Investment Research cut shares of DTE Energy (NYSE:DTE) from a buy rating to a hold rating in a report released on Wednesday morning.

According to Zacks, “In last one year shares of DTE Energy have gained against its industry's  decline. DTE Energy is investing steadily to enhance its renewable generation assets. DTE Energy plans to build natural gas turbine plants to provide approximately 1,100 megawatts of energy from the beginning of 2022. Apart from natural gas, the company plans to continue investing in wind and solar to improve its renewables portfolio. Currently, management is targeting an annual dividend increase of about 7% through 2019. The company’s effort to maximize shareholder value is expected to attract investors. However, DTE Energy faces increasingly stringent government regulations for curbing emissions and operational risks, that remains a major concern.Also, DTE Energy is subject to interest rate risk in connection with the issuance of debt.”

A number of other equities research analysts have also recently commented on the stock. Wells Fargo & Co increased their target price on shares of DTE Energy from $113.00 to $118.00 and gave the company a market perform rating in a research report on Monday, September 17th. Citigroup increased their target price on shares of DTE Energy from $103.00 to $110.00 and gave the company a hold rating in a research report on Monday, September 10th. Barclays assumed coverage on shares of DTE Energy in a research report on Wednesday, August 15th. They set an equal weight rating and a $116.00 target price for the company. KeyCorp increased their target price on shares of DTE Energy from $115.00 to $118.00 and gave the company an overweight rating in a research report on Friday, July 27th. Finally, Scotiabank assumed coverage on shares of DTE Energy in a research report on Tuesday, July 24th. They set a buy rating and a $115.00 target price for the company. One investment analyst has rated the stock with a sell rating, seven have given a hold rating and four have assigned a buy rating to the company. The stock presently has an average rating of Hold and an average target price of $113.73.

NYSE:DTE opened at $110.14 on Wednesday. DTE Energy has a 52 week low of $94.25 and a 52 week high of $116.74. The company has a debt-to-equity ratio of 1.23, a current ratio of 1.16 and a quick ratio of 0.89. The company has a market cap of $19.84 billion, a P/E ratio of 19.70, a PEG ratio of 3.32 and a beta of 0.11.

DTE Energy (NYSE:DTE) last posted its earnings results on Wednesday, July 25th. The utilities provider reported $1.36 EPS for the quarter, beating the Zacks’ consensus estimate of $1.13 by $0.23. DTE Energy had a net margin of 8.58% and a return on equity of 10.63%. The company had revenue of $3.16 billion during the quarter, compared to analysts’ expectations of $2.57 billion. During the same quarter in the prior year, the company posted $1.07 earnings per share. As a group, equities analysts anticipate that DTE Energy will post 6.16 EPS for the current fiscal year.

In other DTE Energy news, insider Trevor F. Lauer sold 3,800 shares of the firm’s stock in a transaction on Friday, August 3rd. The shares were sold at an average price of $110.02, for a total value of $418,076.00. Following the completion of the transaction, the insider now owns 11,989 shares of the company’s stock, valued at $1,319,029.78. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Chairman Gerard M. Anderson sold 10,000 shares of the firm’s stock in a transaction on Tuesday, August 7th. The stock was sold at an average price of $110.18, for a total transaction of $1,101,800.00. Following the completion of the transaction, the chairman now directly owns 84,858 shares of the company’s stock, valued at approximately $9,349,654.44. The disclosure for this sale can be found here. In the last ninety days, insiders sold 15,226 shares of company stock valued at $1,674,057. Corporate insiders own 0.59% of the company’s stock.

Several hedge funds and other institutional investors have recently bought and sold shares of DTE. Millennium Management LLC increased its stake in shares of DTE Energy by 210.7% in the first quarter. Millennium Management LLC now owns 1,548,620 shares of the utilities provider’s stock worth $161,676,000 after acquiring an additional 1,050,142 shares during the period. Royal Bank of Canada increased its stake in shares of DTE Energy by 50.6% in the first quarter. Royal Bank of Canada now owns 1,230,529 shares of the utilities provider’s stock worth $128,466,000 after acquiring an additional 413,636 shares during the period. Canada Pension Plan Investment Board increased its stake in shares of DTE Energy by 203.1% in the second quarter. Canada Pension Plan Investment Board now owns 213,110 shares of the utilities provider’s stock worth $22,085,000 after acquiring an additional 142,800 shares during the period. Legal & General Group Plc increased its stake in shares of DTE Energy by 8.7% in the second quarter. Legal & General Group Plc now owns 1,744,677 shares of the utilities provider’s stock worth $180,833,000 after acquiring an additional 139,879 shares during the period. Finally, Bank of Montreal Can increased its stake in shares of DTE Energy by 41.3% in the third quarter. Bank of Montreal Can now owns 301,926 shares of the utilities provider’s stock worth $32,950,000 after acquiring an additional 88,258 shares during the period. 70.93% of the stock is owned by institutional investors and hedge funds.

DTE Energy Company Profile

DTE Energy Company engages in the utility operations. The company's Electric segment generates, purchases, distributes, and sells electricity to approximately 2.2 million residential, commercial, and industrial customers in southeastern Michigan. It generates electricity through fossil-fuel, hydroelectric pumped storage, and nuclear plants, as well as wind and other renewable assets.

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