What Analyst Ratings Spell For Dominion Energy, Inc. (D)?

Analysts at BofA/Merrill cut their rating on shares of Dominion Energy, Inc. (NYSE:D) from Neutral to Underperform in their opinion released on January 11. UBS analysts bumped their recommendation on D stock from Neutral to Buy in a separate flash note to investors on November 29. Analysts at BofA/Merrill are sticking to their Neutral recommendation. However, on November 02, they lifted target price for these shares to $69 from $71. Analysts at BofA/Merrill, made their first call for the stock with a Neutral rating, according to a research note that dated back to November 02.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Dominion Energy, Inc. (NYSE:D)’s prospects. The earliest insider trade took place on 12/19/2018. Chapman James R. gathered a total of 4.05 thousand shares of company at average share price of $74.02. The total for the purchase was set at $300 thousand. After this transaction, the SVP, CFO & Treasurer account balance stood at 22.26 thousand shares. The stock lost -5.63 percent since that insider purchase. On 08/28/2018, Harris John W, Director, purchased 10 thousand shares at a price per share of $71.15. This added 711.5 thousand shares to the insider’s fortune and the stock saw a -1.83 percent retreat in value since the news became public. This transaction left 64.73 thousand shares in the Director account. On 05/10/2018, President and CEO Farrell Thomas F Ii performed a purchase transaction worth $253.76 thousand. This purchase at $63.44 each has added 4 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded 10.1 percent increase since the transaction was reported. The insider now is left with 1.05 million shares remaining in the account. Rigby Joseph M, who performs the Director job, bought 2.68 thousand shares for $199.99 thousand. The acquisition occurred on 02/28/2018 was priced at $74.65 per share. The share price plunged -6.43 percent since the reporting date. Rigby Joseph M now left with a stake of 5.76 thousand D stock worth $402.62 thousand after the insider buying.

Dominion Energy, Inc. (D) is expected to jump by 9.62 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $84-month high price target. This represents a whopping 20.26 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $77.5, which represents a return potential of 10.95 percent when compared to the closing price of the stock of $69.85 on Friday, January 11. The lowest price target for the stock is $69 — slightly more than -1.22 percent from D’s current share price.

The shares are currently floating around the first support level of $69.03. Below this, the next support is placed in the zone of $68.21. Till the time, the D stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 37.61 on daily chart, which may remain a cause for comfort. If the price breaks below $68.21 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $71.06 mark may result into a pull-back move towards $72.27 level.

D shares dropped -2.05 points or -2.85 percent on Friday to $69.85 with a heavy trade volume of 5.615 million shares. After opening the session at $71.18, the shares went as high as $71.45 and as low as $69.42, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $54.1 billion and now has 774.16 million shares outstanding. Dominion Energy, Inc. (D) stock has lost -8.39 percent of market value in 21 trading days.

D stock has a trailing 3-year beta of 0.25, 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 $3.48 a share in the trailing twelve months. The stock’s value has fallen -2.25 percent year to date (YTD) against a decline of -8.35 percent in 12 month’s time. The company’s shares still trade -9.51 percent away from its 1-year high of $77.19 and 13.52 percent up from 52-week low of $61.53. The average consensus rating on the company is 2.5, 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 Dominion Energy, Inc. (D) are trading at a P/E ratio of 21.29 times earnings reported for the past 12 months. The industry D operates in has an average P/E of 16.94. Its P/E ratio went as low as 20.95X and as high as 34.31 over the 5-year span. Further, it is sporting a 4.09 on the Price-to-Sales ratio. Compare this with the industry average P/S of 3.09. 99.2 percent is the gross profit margin for Dominion Energy, Inc. and operating margin sits at 28.5 percent. Along with this, the net profit margin is 23.6 percent.

D will be showing off its Q4 earnings on February 04. Analysts are forecasting revenue to climb 7.7 percent to $3.46B in the next fiscal quarter, while earnings are seen soaring by nearly 3.3 percent to $0.94 per share. History has shown that shares in Dominion Energy, Inc. have gone down on 20 different earnings reaction days and are predicted to add 0.01 percent when the company reports upcoming earnings. In last reported earnings results, it earned $1.15 per share, better than the $1.13, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $3.45B, better than the $3.38B analysts expected. Earnings are estimated to increase by -1.8 percent this year, 4.98 percent next year and continue to increase by 6.33 percent annually for the next 5 years.