Zacks Investment Research Downgrades Hawaiian Electric Industries (HE) to Sell

Zacks Investment Research lowered shares of Hawaiian Electric Industries (NYSE:HE) from a hold rating to a sell rating in a research note published on Thursday.

According to Zacks, “Shares of Hawaiian Electric have underperformed its industry in the last six months. Despite investing substantially in renewable projects, increasingly stringent government regulations for curbing emissions is a major cause of concern. Hawaiian Electric depends heavily on third-party suppliers for fuel and purchased power. Fluctuations in the oil price in the global market also might hamper stocks like Hawaiian Electric. Any rise in price of natural gas without a spike in power price will affect the company’s ability to generate power. However, Hawaiian Electric continues to make systematic investments in utility infrastructure development projects, primarily adding new generation facilities, replacing aging infrastructure and restoring transmission and distribution assets.”

HE has been the subject of a number of other research reports. Bank of America cut shares of Hawaiian Electric Industries from a neutral rating to an underperform rating and cut their price objective for the company from $35.00 to $34.00 in a report on Thursday, November 15th. Wells Fargo & Co lifted their price objective on shares of Hawaiian Electric Industries from $36.00 to $37.00 and gave the company a market perform rating in a report on Monday, September 17th. Three investment analysts have rated the stock with a sell rating and two have issued a hold rating to the company. Hawaiian Electric Industries has an average rating of Sell and a consensus price target of $34.00.

HE opened at $35.84 on Thursday. Hawaiian Electric Industries has a fifty-two week low of $31.72 and a fifty-two week high of $39.35. The company has a debt-to-equity ratio of 0.84, a current ratio of 0.08 and a quick ratio of 0.08. The firm has a market capitalization of $3.89 billion, a price-to-earnings ratio of 21.72, a PEG ratio of 2.71 and a beta of 0.24.

Hawaiian Electric Industries (NYSE:HE) last released its quarterly earnings data on Wednesday, November 7th. The utilities provider reported $0.60 earnings per share for the quarter, missing analysts’ consensus estimates of $0.62 by ($0.02). Hawaiian Electric Industries had a net margin of 6.76% and a return on equity of 9.52%. The firm had revenue of $768.05 million during the quarter, compared to analysts’ expectations of $709.02 million. During the same period in the previous year, the firm posted $0.55 EPS. The firm’s quarterly revenue was up 14.1% on a year-over-year basis. As a group, equities analysts anticipate that Hawaiian Electric Industries will post 1.85 EPS for the current year.

Several hedge funds have recently added to or reduced their stakes in HE. ValueAct Holdings L.P. purchased a new stake in shares of Hawaiian Electric Industries during the third quarter worth about $42,611,000. Deprince Race & Zollo Inc. purchased a new stake in shares of Hawaiian Electric Industries during the third quarter worth about $18,442,000. Russell Investments Group Ltd. increased its stake in shares of Hawaiian Electric Industries by 109.7% during the third quarter. Russell Investments Group Ltd. now owns 669,539 shares of the utilities provider’s stock worth $23,750,000 after purchasing an additional 350,210 shares in the last quarter. WINTON GROUP Ltd increased its stake in shares of Hawaiian Electric Industries by 4,573.5% during the second quarter. WINTON GROUP Ltd now owns 342,192 shares of the utilities provider’s stock worth $11,737,000 after purchasing an additional 334,870 shares in the last quarter. Finally, State of New Jersey Common Pension Fund D purchased a new stake in shares of Hawaiian Electric Industries during the third quarter worth about $9,965,000. 51.54% of the stock is owned by institutional investors and hedge funds.

About Hawaiian Electric Industries

Hawaiian Electric Industries, Inc, through its subsidiaries, engages in the electric utility and banking businesses primarily in the state of Hawaii. The company's Electric Utility segment is involved in generating, purchasing, transmitting, distributing, and selling electric energy. Its renewable energy sources and potential sources include wind, solar, photovoltaic, geothermal, wave, hydroelectric, sugarcane waste, municipal waste, and other bio fuels.

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