Investors are getting the right to buy stock and some debt of the energy company.
NextEra Energy will sell shares to raise funds. The company plans to use part of the proceeds to fund growth.
The shares of NextEra Energy Inc (NYSE:NEE) are down 3.8% to trade at $69.55, and earlier fell as low as $68.97, after the utility company announced the sale of $2 billion equity units to Wells Fargo and BofA Global Securities.
NextEra Energy (NYSE: NEE ) stock is trending on social media and business news websites, and its shares are down about 4% in early trading. The company plans to sell $2 billion of equity units.
NextEra Energy will sell $2 billion in equity units, priced at $50 a piece, which serve as a contract to purchase shares no later than June 1, 2027. NextEra's stock has risen 20% over the past three months as analysts and investors see utilities benefiting from rising power demand.
Utility firm NextEra Energy said on Monday it intends to sell $2 billion of equity units, each issued in a stated amount of $50.
If nothing else, analyst ratings and price targets can provide an indication of sentiment towards a stock. However, just because analysts are bullish or bearish on a particular security doesn't mean that it is going to rise or fall.
NextEra Energy has grown its earnings and dividend at above-average rates over the last 10 years. It recently extended its growth outlook by another year, until 2027.
NextEra Energy expects 6% to 8% earnings growth per year through at least 2027. Management is targeting 10% dividend growth annually through at least 2026.
NextEra Energy is positioned to benefit from AI, electrification, and reshoring trends in the United States. Lower than expected fiscal 2027 EPS guidance led to a share price drop, but the long-term growth potential remains strong. NEE outlined its advantages and positioning in its annual investor conference presentation.
NextEra Energy is a defensive growth play on renewable energy with strong competitive positions in the FPL and Energy Resources divisions. There is accelerating structural growth in the clean energy industry, with forecasts projecting increased power demand and renewables share. NextEra Energy has a history of outperformance, undemanding valuation, and potential for positive surprises in adjusted EPS growth.
NextEra Energy experienced a significant rally after hitting a 52-week low in 2023, with potential for long-term growth. NEE's strong position in the energy market, particularly in data center markets, makes it a compelling investment amidst the A.I. renaissance. Despite risks such as high debt and competition, NEE's dividend growth potential and expected EPS and revenue growth make it an attractive long-term play.