PNM Resources (NYSE:PNM) Downgraded by Zacks Investment Research to “Sell”

Zacks Investment Research downgraded shares of PNM Resources (NYSE:PNM) from a hold rating to a sell rating in a research report released on Wednesday morning, 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. “

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

Shares of NYSE:PNM traded down $0.21 on Wednesday, hitting $50.40. The company had a trading volume of 296,600 shares, compared to its average volume of 401,523. The company has a debt-to-equity ratio of 1.66, a quick ratio of 0.59 and a current ratio of 0.69. PNM Resources has a 52-week low of $37.17 and a 52-week high of $52.10. The business has a 50 day moving average of $49.82. The firm has a market capitalization of $4.07 billion, a P/E ratio of 25.20, a PEG ratio of 4.53 and a beta of 0.29.

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

Institutional investors have recently added to or reduced their stakes in the stock. Osborn Williams & Donohoe LLC acquired a new position in PNM Resources in the first quarter valued at $69,000. Quadrant Capital Group LLC increased its stake in PNM Resources by 1,004.6% in the first quarter. Quadrant Capital Group LLC now owns 2,176 shares of the utilities provider’s stock valued at $100,000 after purchasing an additional 1,979 shares during the last quarter. Meeder Asset Management Inc. acquired a new position in PNM Resources in the first quarter valued at $123,000. PNC Financial Services Group Inc. increased its stake in PNM Resources by 38.9% in the fourth quarter. PNC Financial Services Group Inc. now owns 3,925 shares of the utilities provider’s stock valued at $162,000 after purchasing an additional 1,100 shares during the last quarter. Finally, Intrust Bank NA acquired a new position in PNM Resources in the first quarter valued at $213,000. Hedge funds and other institutional investors own 90.15% of the company’s stock.

PNM Resources Company Profile

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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