Panagora Asset Management Inc. has reduced its holdings in TXNM Energy, Inc. (NYSE:TXNM) by 17.2% during the second quarter of 2023. In its recent filing with the Securities and Exchange Commission, Panagora disclosed ownership of 75,432 shares after selling 15,696 shares during the quarter. At the end of this period, the firm’s stake in TXNM Energy was valued at approximately $4.25 million, representing about 0.07% of the company.
Other institutional investors have also made significant adjustments to their positions in TXNM Energy. Vanguard Group Inc. increased its stake by 3.6% in the first quarter, now holding 10,487,634 shares valued at $560.88 million after acquiring an additional 361,945 shares. Similarly, Alliancebernstein L.P. boosted its holdings by 41.4%, now owning 3,560,321 shares valued at $190.41 million.
Geode Capital Management LLC also raised its position by 2.9% in the second quarter, holding 2,275,324 shares worth $128.17 million. Norges Bank acquired a new position valued at about $99.35 million, while BROOKFIELD Corp ON purchased shares worth approximately $94.22 million. Collectively, institutional investors and hedge funds now control 91.68% of TXNM Energy’s stock.
Market Reactions and Analyst Ratings
TXNM Energy has recently attracted attention from analysts. Weiss Ratings maintained a “hold (C+)” rating on the stock, while Citigroup initiated coverage with a “neutral” rating, setting a price target of $61.25. Jefferies Financial Group downgraded its rating from “buy” to “hold” but raised the target price from $58.00 to $61.25. Current consensus indicates two analysts rate the stock as a buy and six as a hold, with an average rating of “hold” and a price target of $58.42.
Insider trading activity has also been notable. On November 14, 2023, Director Vicky A. Bailey sold 1,800 shares at an average price of $57.74, totaling $103,932. Following this transaction, Bailey owns 8,725 shares valued at about $503,782, reflecting a 17.10% decline in her position. Insiders hold 1.36% of TXNM Energy’s stock.
TXNM Energy’s Performance and Financial Outlook
As of October 31, 2023, TXNM Energy shares opened at $58.20. The company’s 50-day moving average stands at $57.26, while its 200-day moving average is $56.88. The stock has a 52-week low of $45.71 and a 52-week high of $58.45. TXNM Energy currently has a market capitalization of $6.34 billion, a price-to-earnings ratio of 34.03, and a PEG ratio of 2.76.
The company reported its most recent quarterly earnings, showing earnings per share of $1.33, which fell short of analysts’ estimates of $1.44 by $0.11. TXNM Energy generated a revenue of $647.16 million, surpassing expectations of $608.65 million. The firm achieved a return on equity of 7.20% and a net margin of 8.67%. Analysts project TXNM Energy will report an earnings per share of $2.73 for the current fiscal year.
In addition to these developments, TXNM Energy announced a quarterly dividend of $0.4225 per share, scheduled for payment on February 13, 2024. Shareholders of record on January 30, 2024 will receive this dividend, marking an increase from the previous quarterly dividend of $0.41. This translates to an annualized dividend of $1.69, resulting in a yield of 2.9%. The company’s dividend payout ratio stands at 95.32%.
TXNM Energy, Inc. operates through its subsidiaries, providing electricity and electric services across the United States. Its segments include the Public Service Company of New Mexico (PNM) and Texas-New Mexico Power Company (TNMP), focusing on electricity generation, transmission, and distribution.
