PNM Resources (NYSE:PNM) Cut to “Sell” at Zacks Investment Research

Zacks Investment Research lowered shares of PNM Resources (NYSE:PNM) from a hold rating to a sell rating in a report issued on Wednesday, Zacks.com reports.

According to Zacks, “PNM Resources, Inc. is an electric utility that provides electric generation, transmission and distribution service to its rate-regulated customers. In New Mexico, the utility’s retail electric service territory covers a large area of north central New Mexico, including the cities of Albuquerque, Rio Rancho, and Santa Fe, and certain areas of southern New Mexico. Service to retail electric customers is subject to the jurisdiction of the NMPRC. PNM has decided to stop pursuing wholesale generation contracts although some sales continue to be made to wholesale customers. Service to wholesale customers is regulated by FERC. Regulation encompasses the utility’s electric rates, service, accounting, issuances of securities, construction of major new generation, types of generation resources, transmission and distribution facilities, and other matters. “

A number of other equities research analysts also recently commented on the company. Barclays reiterated a top pick rating and issued a GBX 3,250 ($42.47) price objective on shares of in a report on Wednesday, June 19th. Williams Capital reiterated a hold rating on shares of Southwest Gas in a report on Monday, March 18th. Mizuho set a $88.00 price objective on Gilead Sciences and gave the company a buy rating in a report on Friday, May 10th. Bank of America upgraded Air Products & Chemicals from an underperform rating to a neutral rating and increased their price target for the stock from $170.00 to $215.00 in a report on Thursday, April 25th. Finally, UBS Group downgraded to a sell rating and increased their price target for the stock from GBX 530 ($6.93) to GBX 540 ($7.06) in a report on Wednesday, June 12th. Three investment analysts have rated the stock with a sell rating, three have issued a hold rating and one has assigned a buy rating to the company. PNM Resources has an average rating of Hold and an average price target of $48.28.

NYSE PNM opened at $49.51 on Wednesday. The firm has a 50-day moving average of $49.85. The company has a market capitalization of $4.01 billion, a P/E ratio of 26.25, a PEG ratio of 4.26 and a beta of 0.29. The company has a quick ratio of 0.59, a current ratio of 0.69 and a debt-to-equity ratio of 1.66. PNM Resources has a 12 month low of $37.17 and a 12 month high of $52.10.

PNM Resources (NYSE:PNM) last released its quarterly earnings data on Tuesday, May 7th. The utilities provider reported $0.13 EPS for the quarter, beating analysts’ consensus estimates of $0.11 by $0.02. The business had revenue of $349.65 million during the quarter, compared to the consensus estimate of $273.12 million. PNM Resources had a return on equity of 8.68% and a net margin of 6.10%. The firm’s revenue was up 10.0% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.21 earnings per share. On average, equities research analysts predict that PNM Resources will post 2.16 EPS for the current year.

Several institutional investors have recently made changes to their positions in PNM. Millennium Management LLC increased its holdings in shares of PNM Resources by 212.4% in the fourth quarter. Millennium Management LLC now owns 947,749 shares of the utilities provider’s stock worth $38,943,000 after acquiring an additional 644,357 shares in the last quarter. AJO LP increased its holdings in shares of PNM Resources by 53.7% in the first quarter. AJO LP now owns 804,837 shares of the utilities provider’s stock worth $38,101,000 after acquiring an additional 281,037 shares in the last quarter. Assenagon Asset Management S.A. bought a new stake in shares of PNM Resources in the first quarter worth about $6,365,000. Deutsche Bank AG increased its holdings in shares of PNM Resources by 59.9% in the fourth quarter. Deutsche Bank AG now owns 318,993 shares of the utilities provider’s stock worth $13,106,000 after acquiring an additional 119,512 shares in the last quarter. Finally, JPMorgan Chase & Co. increased its holdings in shares of PNM Resources by 26.0% in the first quarter. JPMorgan Chase & Co. now owns 501,920 shares of the utilities provider’s stock worth $23,761,000 after acquiring an additional 103,643 shares in the last quarter. Institutional investors own 90.15% of the company’s stock.

About PNM Resources

PNM Resources, Inc, through its subsidiaries, engages in the energy and energy-related businesses in the United States. It operates through Public Service Company of New Mexico (PNM) and Texas-New Mexico Power Company (TNMP) segments. The PNM segment is primarily involved in the generation, transmission, and distribution of electricity.

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