London Co. Boosts Stake in Dominion Energy by 30.9% in Q2

London Co. of Virginia has increased its holdings in Dominion Energy Inc. (NYSE: D) by an impressive 30.9% during the second quarter of 2023. According to its latest filing with the U.S. Securities and Exchange Commission (SEC), the firm now owns 4,965,699 shares of the utility provider after acquiring an additional 1,172,445 shares in the period. This investment represents approximately 1.6% of London Co. of Virginia’s portfolio, making Dominion Energy its 24th largest position.

As of the most recent SEC disclosure, London Co. of Virginia’s stake in Dominion Energy is valued at about $280.7 million. This surge in ownership aligns with a broader trend among institutional investors, with numerous large firms adjusting their positions in Dominion Energy over recent months.

Several notable investors have also increased their stakes. Benjamin Edwards Inc. raised its position by 79.9%, acquiring an additional 8,102 shares to reach a total of 18,248 shares, valued at $1.03 million. Similarly, BI Asset Management Fondsmaeglerselskab A S increased its holdings by 30.6%, now owning 32,049 shares valued at $1.81 million. Brevan Howard Capital Management LP and Adage Capital Partners GP LLC both established new positions in Dominion Energy, valued at $565,000 and $1.05 million, respectively. The California State Teachers Retirement System also slightly increased its holdings by 1.5%, bringing its total to 1,017,453 shares worth $57.5 million. Currently, institutional investors hold approximately 73.04% of Dominion Energy’s stock.

Analysts Weigh in on Dominion Energy’s Prospects

Wall Street analysts have provided mixed reviews on Dominion Energy’s stock. Weiss Ratings reaffirmed a “buy (B-)” rating, while Wells Fargo & Company initiated coverage with an “overweight” rating and a price target of $67.00. Royal Bank of Canada maintained a “sector perform” rating with a target price of $70.00. BTIG Research also began coverage, rating the stock as “neutral.” On the other hand, BMO Capital Markets revised its target price down from $67.00 to $65.00, assigning a “market perform” rating.

Overall, three analysts recommend a Buy rating, seven suggest holding, and one analyst advises selling. According to MarketBeat.com, Dominion Energy has a consensus rating of “Hold” with a price target averaging $64.63.

Dominion Energy’s Financial Performance

On October 31, 2023, Dominion Energy reported its latest earnings, revealing earnings per share (EPS) of $1.06, surpassing the consensus estimate of $1.02 by $0.04. The firm posted revenues of $4.53 billion for the quarter, slightly below the anticipated $4.71 billion. Despite this, Dominion Energy’s quarterly revenue increased by 14.9% year-over-year, reflecting its robust growth trajectory.

Dominion Energy set its fiscal year 2025 EPS guidance at $3.330 to $3.480. Research analysts forecast that the company will achieve an EPS of $3.39 for the current fiscal year.

The company also recently announced a quarterly dividend of $0.6675, scheduled for payment on December 20, 2023, to shareholders on record as of December 5, 2023. This dividend represents an annualized yield of 4.5% and a payout ratio of 90.82%.

About Dominion Energy

Dominion Energy, Inc. is a leading energy provider in the United States, operating through three principal segments: Dominion Energy Virginia, Dominion Energy South Carolina, and Contracted Energy. The Dominion Energy Virginia segment generates, transmits, and distributes regulated electricity to approximately 2.8 million residential, commercial, industrial, and governmental customers across Virginia and North Carolina.

As investors keep a close eye on Dominion Energy, the firm’s recent performance and strategic adjustments by major stakeholders suggest a continued focus on growth and stability in the energy sector.