CHARLOTTE, N.C.—Glenn Robert Alexander, Executive Vice President and CEO of Duke Energy 's (NYSE:DUK) DEF & Midwest division, recently sold 15,002 shares of the company's common stock. The transactions, which occurred on November 15, 2024, were conducted under a pre-arranged trading plan. The shares were sold at prices ranging from $109.47 to $110.00, amounting to a total value of approximately $1.65 million.
Following these sales, Alexander retains direct ownership of 9,987 shares and holds an additional 5,307 shares indirectly through a 401(k) plan. The sales were executed automatically as part of a Rule 10b5-1 trading plan, which was adopted on August 13, 2024.
In other recent news, Duke Energy, a leading electric power holding company, reported lower than expected third-quarter earnings per share (EPS) of $1.62, as per the latest reports. This fell short of BMO Capital's estimate of $1.68 and the consensus estimate of $1.69. The company's management confirmed the full-year 2024 earnings guidance, projecting it to be within the $5.85 to $6.10 range, but anticipates landing in the lower half due to financial burdens from recent storms.
Despite these challenges, Duke Energy remains optimistic about its long-term EPS growth forecast, projected at 5 to 7 percent from the initial 2024 midpoint of $5.98. The company is focusing on updating its capital and financing strategies, as well as load growth, in the fourth quarter of 2024. BMO Capital has adjusted its price target for Duke Energy to $124 from the previous $128 while maintaining an Outperform rating on the stock.
In terms of recent developments, Duke Energy reported costs between $2.4 billion and $2.9 billion due to storm damage. However, the company successfully restored power to a significant number of affected customers. Looking ahead, Duke Energy is forecasting a 5% to 7% EPS growth rate through 2028, backed by regulatory approvals and infrastructure investments. The company plans to implement new rate structures in 2025 to aid in cost recovery and maintain service affordability, and is targeting the monetization of $300 million to $500 million in energy tax credits annually to improve financial flexibility.
InvestingPro Insights
While Duke Energy's executive vice president has recently sold a significant portion of his shares, it's important to consider the broader financial picture of the company. According to InvestingPro data, Duke Energy boasts a substantial market capitalization of $87.65 billion, underscoring its position as a major player in the electric utilities industry.
Duke Energy's financial health appears robust, with a revenue of $29.75 billion over the last twelve months as of Q3 2023, representing a growth of 3.48%. This growth is complemented by a strong gross profit margin of 49.9%, indicating efficient operations.
InvestingPro Tips highlight Duke Energy's commitment to shareholder returns. The company has maintained dividend payments for an impressive 54 consecutive years and has raised its dividend for 17 consecutive years. This consistent dividend policy is reflected in the current dividend yield of 3.73%, which may be attractive to income-focused investors.
Despite the recent insider sale, Duke Energy's stock has shown strong performance, with a one-year price total return of 29.71%. This positive trend aligns with the InvestingPro Tip that the company is expected to remain profitable this year, as predicted by analysts.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights with 9 more tips available for Duke Energy. These tips could provide valuable context for understanding the company's financial position and future prospects in light of recent executive transactions.
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