ES
Eversource Energy ($ES) Sees First Insider Purchase in a Year...Sign of Renewed Management Confidence?
08/26/2025 18:15
Sentiment
Summary
- First insider purchase in a year at Eversource Energy - Trustee Loretta Keane bought $249,738 worth of shares
- Stock recovered from year-end lows of $56 to $63-66 range on Fed rate cut expectations
- Offshore wind exit caused short-term losses, but core utility operations showing solid performance
POSITIVE
- First insider purchase in a year signals renewed management confidence
- Fed rate-cutting cycle creates favorable environment for high-dividend utility stocks
- AI and data center boom driving long-term electricity demand growth
- Q1 net income up 5.5% showing core business improvement
- Analyst average price target of $71-73 suggests upside potential
NEGATIVE
- Consistent insider selling by executives including CEO over the past year
- Offshore wind asset sales yielded $375 million less than expected
- Water business divestiture reduces revenue diversification
- High capital intensity makes company vulnerable to rising interest rates
- Regulated industry faces constraints on rate increases and political pressure
Expert
From a utilities sector perspective, the recent insider purchase at Eversource Energy sends a meaningful signal. With AI and data center proliferation driving electricity demand surge, the strategy to focus on stable utility operations by exiting offshore wind investments appears sound. The high dividend yield offered by utility stocks should become increasingly attractive as the Fed enters a rate-cutting cycle.
Previous Closing Price
$63.3
-0.00(0.00%)
Average Insider Trading Data Over the Past Year
$66.06
Purchase Average Price
$63.04
Sale Average Price
$249.73K
Purchase Amount
$2.15M
Sale Amount
Transaction related to News
Trading Date | Filing Date | Insider | Title | Type | Avg Price | Trans Value |
|---|---|---|---|---|---|---|
09/04/2025 | 09/04/2025 | Sale | $ |
Eversource Energy ($ES) is a major electric utility serving approximately 4.2 million customers across New England, operating electric transmission and distribution, natural gas distribution, and water services. The company has recently exited offshore wind investments to focus on its core utility operations. The key development investors should monitor is the significant shift in insider trading patterns. Over the past year, executives including CEO Penelope Conner have been consistently selling shares. From August 2024 through March 2025, 10 out of 11 insider transactions were sales, ranging from $32,468 to $752,148. EVP Gregory Butler executed the largest sale in February, disposing of 12,000 shares worth $752,148. However, on August 22nd, Trustee Loretta Keane purchased 3,780 shares at $66.07 per share, totaling $249,738. This marks the only insider purchase in the past year, potentially signaling a change in management's outlook on the company's prospects. The timing of this purchase at relatively high price levels makes it particularly noteworthy. $ES shares declined from around $66 in August 2024 to $56 by year-end, but have recovered to trade in the $63-66 range recently. This recovery reflects expectations of Federal Reserve rate cuts, which typically benefit interest-sensitive utility stocks. The company's financial health remains solid. Q1 2025 net income increased 5.5% year-over-year to $550.8 million, primarily driven by higher electricity rates. Electric distribution and transmission earnings grew 12.1% and 12.8% respectively. However, water distribution earnings fell 33.3% due to the planned sale of Aquarion Water unit. Offshore wind investments continue to weigh on results. The company recorded a $520 million loss in Q3 2024 and realized only $745 million from wind asset sales versus the expected $1.12 billion. Management maintains that despite these challenges, the company can still achieve its target debt-to-total capitalization ratio of 14-15% by 2025. The broader utility sector benefits from surging electricity demand driven by AI and data center growth. As the Fed's rate-cutting cycle gains momentum, utilities offering attractive dividend yields (currently around 3.8% for $ES) should become increasingly appealing to income-focused investors. The recent insider purchase may signal management confidence in current valuation levels. Wall Street analysts maintain average price targets of $71-73, suggesting upside potential from current levels. Investors should closely monitor both insider trading patterns and Federal Reserve policy direction for investment timing.