Xcel Energy Inc. (XEL): Can It Get Better?

How do you judge Wall Street’s opinion of XEL stock? You could look at price, sure. But that doesn’t tell the whole story. Short sellers are getting bullish about Xcel Energy Inc. (NASDAQ:XEL) during the most recent two-week period. Looking at the sentiment indicator for the XEL stock we see that the short-interest ratio is at 2.812371 while the average analyst recommendations at 2.6 suggests buying these shares. Between December 14 and December 31, the total number of shorted shares amounted to 16.08 million shares. That was 17.49% less than the total of 19.49 million shares in the space of prior two weeks, which means more traders or funds betting that the stock will go up. Average daily volume for Xcel Energy Inc. at the December 31st settlement jumped to 5,718,189, as compared to 4,679,595 at the December 14th report. That brought days to cover 32.48% down from the 4.164938 days to cover recorded at the prior short interest data release.

Xcel Energy Inc. (XEL) will probably climb 4.91 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $57price as 12-month high target. This represents a whopping 15.69 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $50.5, which represents a return potential of 2.5 percent when compared to the closing price of the stock of $49.27 on Thursday, January 10. The lowest price target for the stock is $41 — slightly more than -16.79 percent from XEL’s current share price.

The stock is currently hovering around the first support level of $48.57. Below this, the next support is placed in the zone of $47.87. Till the time, the XEL stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 45.8 on daily chart, which may remain a cause for concern. If the price breaks below $47.87 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $49.64 mark may result into a pull-back move towards $50.02 level.

On 10th of January, Xcel Energy Inc. (NASDAQ:XEL) shares ended higher after a volatile session. The shares accumulated 0.81 points or 1.67 percent at $49.27 with a light trade volume of 3.902 million shares. After opening the session at $48.38, the shares went as high as $49.315 and as low as $48.24, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $25.2 billion and now has 510.88 million shares outstanding. Xcel Energy Inc. (XEL) stock has lost -7.84 percent of market value in 21 trading days.

XEL stock has a trailing 3-year beta of 0.18, 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 $1.76 a share in the trailing twelve months. The stock’s value has fallen 0 percent year to date (YTD) against a rise of 5.75 percent in 12 month’s time. The company’s shares still trade -8.94 percent away from its 1-year high of $54.11 and 18.69 percent up from 52-week low of $41.51. 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 Xcel Energy Inc. (XEL) are trading at a P/E ratio of 20.96 times earnings reported for the past 12 months. The industry XEL operates in has an average P/E of 13.22. Its P/E ratio went as low as 14.41X and as high as 18.54 over the 5-year span. Further, it is sporting a 2.2 on the Price-to-Sales ratio. Compare this with the industry average P/S of 2.19. 92.6 percent is the gross profit margin for Xcel Energy Inc. and operating margin sits at 17.9 percent. Along with this, the net profit margin is 10.8 percent.

Let’s take a look at some insider activity at Xcel Energy Inc. (NASDAQ:XEL) and see the pattern. The earliest insider trade took place on 09/07/2018. Poferl Judy M. parted with a total of 7.18 thousand shares of company at average share price of $48.67. The total for the sales was set at $349.55 thousand. After this transaction, the SVP, Corp Secretary, Exec Svcs account balance stood at 18.28 thousand shares. The stock grew 1.23 percent since that insider sale. On 09/05/2018, Casey Lynn, Director, purchased 1 thousand shares at a price per share of $48.89. This added 48.89 thousand shares to the insider’s fortune and the stock saw a 0.78 percent rally in value since the news became public. This transaction left 3.13 thousand shares in the Director account.

On 05/29/2018, Director Wolf Timothy V performed a sale transaction worth $142.81 thousand. This sale at $45.15 each has eliminated 3.16 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 9.13 percent increase since the transaction was reported. The insider now is left with 1 thousand shares remaining in the account. Fowke Benjamin G S Iii, who performs the Chairman, President and CEO job, sold 80 thousand shares for $3.76 million. The disposal occurred on 04/30/2018 was priced at $47.01 per share. The share price soared 4.81 percent since the reporting date. Fowke Benjamin G S Iii now left with a stake of 663.6 thousand XEL stock worth $32.7 million after the insider selling.