PNM Resources (PNM) Lowered to Hold at Zacks Investment Research

PNM Resources (NYSE:PNM) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research report issued on Friday.

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. “

Separately, Bank of America boosted their target price on shares of PNM Resources from $36.00 to $39.00 and gave the stock an “underperform” rating in a research report on Wednesday. Three research analysts have rated the stock with a sell rating and six have given a hold rating to the company. The stock has a consensus rating of “Hold” and a consensus target price of $38.63.

PNM opened at $40.70 on Friday. The stock has a market capitalization of $3.13 billion, a PE ratio of 20.98, a P/E/G ratio of 4.33 and a beta of 0.16. PNM Resources has a 1-year low of $33.75 and a 1-year high of $46.00. The company has a quick ratio of 0.27, a current ratio of 0.34 and a debt-to-equity ratio of 1.19.

PNM Resources (NYSE:PNM) last released its earnings results on Tuesday, November 6th. The utilities provider reported $1.08 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $1.04 by $0.04. The company had revenue of $422.67 million during the quarter, compared to the consensus estimate of $483.08 million. PNM Resources had a net margin of 6.08% and a return on equity of 9.34%. During the same quarter in the previous year, the firm earned $0.93 EPS. On average, equities analysts expect that PNM Resources will post 1.97 EPS for the current year.

Large investors have recently made changes to their positions in the stock. Hartford Investment Management Co. bought a new stake in shares of PNM Resources during the 2nd quarter valued at about $207,000. Engineers Gate Manager LP bought a new stake in shares of PNM Resources during the 3rd quarter valued at about $216,000. Sun Life Financial INC bought a new stake in shares of PNM Resources during the 2nd quarter valued at about $224,000. Commonwealth Bank of Australia bought a new stake in shares of PNM Resources during the 3rd quarter valued at about $319,000. Finally, Dalton Greiner Hartman Maher & Co. bought a new stake in shares of PNM Resources during the 2nd quarter valued at about $323,000. 90.90% of the stock is owned by institutional investors and hedge funds.

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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