Duke Energy Corporation (DUK): Ideal Stock To Have In A Portfolio

Analysts at Scotia Howard Weil, assumed coverage of Duke Energy Corporation (NYSE:DUK) with Sector Outperform recommendation, according to their opinion released on July 24. JP Morgan analysts bumped their recommendation on DUK stock from Underweight to Neutral in a separate flash note to investors on July 23. Analysts at Citigroup issued an upgrade from Sell to Neutral for the stock, in a research note that dated back to July 20.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Duke Energy Corporation (NYSE:DUK)’s prospects. The earliest insider trade took place on 08/15/2018. Jamil Dhiaa M. parted with a total of 4.28 thousand shares of company at average share price of $81.54. The total for the sales was set at $348.91 thousand. After this transaction, the EVP & COO account balance stood at 0 thousand shares. The stock grew 10.17 percent since that insider sale. On 08/10/2018, Jamil Dhiaa M., EVP & COO, sold 7 thousand shares at a price per share of $80.98. This removed 566.86 thousand shares from the insider’s fortune and the stock saw a 10.93 percent rally in value since the news became public. This transaction left 4.28 thousand shares in the EVP & COO account. On 08/06/2018, EVP,Administration&Chief HROff Anderson Melissa H. performed a sale transaction worth $40.88 thousand. This sale at $81.76 each has eliminated 0.5 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 9.87 percent increase since the transaction was reported. The insider now is left with 16.93 thousand shares remaining in the account. Jamil Dhiaa M., who performs the EVP & COO job, sold 3.8 thousand shares for $292.52 thousand. The disposal occurred on 05/15/2018 was priced at $76.98 per share. The share price soared 16.69 percent since the reporting date. Jamil Dhiaa M. now left with a stake of 41.63 thousand DUK stock worth $3.74 million after the insider selling.

Duke Energy Corporation (DUK) is expected to jump by -4.59 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $99-month high price target. This represents a whopping 10.21 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $86.5, which represents a return potential of -3.71 percent when compared to the closing price of the stock of $89.83 on Thursday, December 06. The lowest price target for the stock is $73 — slightly more than -18.74 percent from DUK’s current share price.

The shares are currently floating around the first support level of $88.58. Below this, the next support is placed in the zone of $87.33. Till the time, the DUK stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 69.22 on daily chart, which may remain a cause for concern. If the price breaks below $87.33 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $90.86 mark may result into a pull-back move towards $91.89 level.

DUK shares dropped -0.22 points or -0.24 percent on Thursday to $89.83 with a heavy trade volume of 4.747 million shares. After opening the session at $90.5, the shares went as high as $90.64 and as low as $88.36, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $64.1 billion and now has 713 million shares outstanding. Duke Energy Corporation (DUK) stock has gained 7.48 percent of market value in 21 trading days.

DUK stock has a trailing 3-year beta of -0.06, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $3.96 a share in the trailing twelve months. The stock’s value has surged 6.8 percent year to date (YTD) against a rise of 2.13 percent in 12 month’s time. The company’s shares still trade -0.96 percent away from its 1-year high of $90.70 and 24.83 percent up from 52-week low of $71.96. The average consensus rating on the company is 2.6, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Duke Energy Corporation (DUK) are trading at a P/E ratio of 22.19 times earnings reported for the past 12 months. The industry DUK operates in has an average P/E of 16.94. Its P/E ratio went as low as 18.77X and as high as 23.33 over the 5-year span. Further, it is sporting a 2.65 on the Price-to-Sales ratio. Compare this with the industry average P/S of 3.09. 69.6 percent is the gross profit margin for Duke Energy Corporation and operating margin sits at 21 percent. Along with this, the net profit margin is 12 percent.

DUK will be showing off its Q4 earnings on February 14. Analysts are forecasting revenue to climb 0.9 percent to $5.85B in the next fiscal quarter, while earnings are seen soaring by nearly -3.19 percent to $0.91 per share. History has shown that shares in Duke Energy Corporation have gone up on 18 different earnings reaction days and are predicted to add 0 percent when the company reports upcoming earnings. In last reported earnings results, it earned $1.65 per share, better than the $1.52, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $6.63B, better than the $6.58B analysts expected. Earnings are estimated to increase by 13.9 percent this year, 4.56 percent next year and continue to increase by 4.41 percent annually for the next 5 years.