UBS Maintains Sempra Energy (SRE) Buy Recommendation

Fintel reports that on October 4, 2023, UBS maintained coverage of Sempra Energy (NYSE:SRE) with a Buy recommendation.

Analyst Price Forecast Suggests 28.99% Upside

As of October 4, 2023, the average one-year price target for Sempra Energy is 85.57. The forecasts range from a low of 78.78 to a high of $99.75. The average price target represents an increase of 28.99% from its latest reported closing price of 66.34.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Sempra Energy is 14,655MM, a decrease of 13.63%. The projected annual non-GAAP EPS is 9.16.

Sempra Energy Declares $0.60 Dividend

On September 6, 2023 the company declared a regular quarterly dividend of $0.60 per share ($2.38 annualized). Shareholders of record as of September 27, 2023 will receive the payment on October 15, 2023. Previously, the company paid $1.19 per share.

At the current share price of $66.34 / share, the stock's dividend yield is 3.59%.

Looking back five years and taking a sample every week, the average dividend yield has been 3.12%, the lowest has been 1.67%, and the highest has been 4.72%. The standard deviation of yields is 0.32 (n=235).

The current dividend yield is 1.44 standard deviations above the historical average.

Additionally, the company's dividend payout ratio is 0.59. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company's 3-Year dividend growth rate is 0.14%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 1812 funds or institutions reporting positions in Sempra Energy. This is a decrease of 74 owner(s) or 3.92% in the last quarter. Average portfolio weight of all funds dedicated to SRE is 0.41%, a decrease of 2.91%. Total shares owned by institutions decreased in the last three months by 0.91% to 328,028K shares. The put/call ratio of SRE is 0.98, indicating a bullish outlook.

What are Other Shareholders Doing?

Capital International Investors holds 27,460K shares representing 4.36% ownership of the company. In it's prior filing, the firm reported owning 24,616K shares, representing an increase of 10.36%. The firm increased its portfolio allocation in SRE by 0.78% over the last quarter.

Wellington Management Group Llp holds 12,022K shares representing 1.91% ownership of the company. In it's prior filing, the firm reported owning 12,451K shares, representing a decrease of 3.57%. The firm increased its portfolio allocation in SRE by 530.29% over the last quarter.

VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 9,806K shares representing 1.56% ownership of the company. In it's prior filing, the firm reported owning 9,734K shares, representing an increase of 0.74%. The firm decreased its portfolio allocation in SRE by 10.47% over the last quarter.

AWSHX - WASHINGTON MUTUAL INVESTORS FUND holds 7,662K shares representing 1.22% ownership of the company. In it's prior filing, the firm reported owning 7,263K shares, representing an increase of 5.21%. The firm decreased its portfolio allocation in SRE by 5.08% over the last quarter.

VFINX - Vanguard 500 Index Fund Investor Shares holds 7,492K shares representing 1.19% ownership of the company. In it's prior filing, the firm reported owning 7,335K shares, representing an increase of 2.09%. The firm decreased its portfolio allocation in SRE by 10.90% over the last quarter.

Sempra Energy Background Information
(This description is provided by the company.)

Sempra Energy's mission is to be North America's premier energy infrastructure company. With more than $60 billion in total assets at the end of 2019, the San Diego-based company is the utility holding company with the largest U.S. customer base. The Sempra Energy companies' more than 18,000 employees deliver energy with purpose to over 35 million consumers. The company is focused on the most attractive markets in North America, including California, Texas, Mexico and the LNG export market. Sempra Energy has been consistently recognized for its leadership in sustainability, and diversity and inclusion, and is a member of the S&P 500 Utilities Index and the Dow Jones Utility Index. The company was also named one of the "World's Most Admired Companies" for 2020 by Fortune Magazine.

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