Fintel reports that on September 18, 2023, Citigroup maintained coverage of PNM Resources (NYSE:PNM) with a Neutral recommendation.
Analyst Price Forecast Suggests 18.30% Upside
As of August 31, 2023, the average one-year price target for PNM Resources is 51.78. The forecasts range from a low of 47.47 to a high of $57.75. The average price target represents an increase of 18.30% from its latest reported closing price of 43.77.
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The projected annual revenue for PNM Resources is 2,029MM, a decrease of 12.80%. The projected annual non-GAAP EPS is 2.66.
PNM Resources Declares $0.37 Dividend
On August 1, 2023 the company declared a regular quarterly dividend of $0.37 per share ($1.47 annualized). Shareholders of record as of August 11, 2023 received the payment on August 25, 2023. Previously, the company paid $0.37 per share.
At the current share price of $43.77 / share, the stock’s dividend yield is 3.36%.
Looking back five years and taking a sample every week, the average dividend yield has been 2.77%, the lowest has been 2.21%, and the highest has been 3.94%. The standard deviation of yields is 0.29 (n=234).
The current dividend yield is 2.00 standard deviations above the historical average.
Additionally, the company’s dividend payout ratio is 0.53. 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 0.20%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 597 funds or institutions reporting positions in PNM Resources. This is a decrease of 24 owner(s) or 3.86% in the last quarter. Average portfolio weight of all funds dedicated to PNM is 0.28%, a decrease of 5.19%. Total shares owned by institutions increased in the last three months by 1.39% to 87,149K shares. 
The put/call ratio of PNM is 0.45, indicating a bullish outlook.
What are Other Shareholders Doing?
PSquared Asset Management holds 2,852K shares representing 3.32% ownership of the company. In its prior filing, the firm reported owning 4,095K shares, representing a decrease of 43.56%. The firm decreased its portfolio allocation in PNM by 29.25% over the last quarter.
VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 2,672K shares representing 3.11% ownership of the company. In its prior filing, the firm reported owning 2,671K shares, representing an increase of 0.05%. The firm decreased its portfolio allocation in PNM by 14.48% over the last quarter.
IJH – iShares Core S&P Mid-Cap ETF holds 2,604K shares representing 3.03% ownership of the company. In its prior filing, the firm reported owning 2,648K shares, representing a decrease of 1.70%. The firm decreased its portfolio allocation in PNM by 12.74% over the last quarter.
NAESX – Vanguard Small-Cap Index Fund Investor Shares holds 2,216K shares representing 2.58% ownership of the company. In its prior filing, the firm reported owning 2,245K shares, representing a decrease of 1.30%. The firm decreased its portfolio allocation in PNM by 12.99% over the last quarter.
Magnetar Financial holds 1,978K shares representing 2.30% ownership of the company. In its prior filing, the firm reported owning 1,940K shares, representing an increase of 1.91%. The firm increased its portfolio allocation in PNM by 6.17% over the last quarter.
PNM Resources Background Information
(This description is provided by the company.)
PNM Resources is an energy holding company based in Albuquerque, N.M., with 2019 consolidated operating revenues of $1.5 billion. Through its regulated utilities, PNM and TNMP, PNM Resources has approximately 2,811 megawatts of generation capacity and provides electricity to approximately 790,000 homes and businesses in New Mexico and Texas.
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