PNM Resources (NYSE:PNM) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Saturday. The firm presently has a $47.00 target price on the utilities provider’s stock. Zacks Investment Research‘s target price would suggest a potential upside of 13.23% from the stock’s previous close.

According to Zacks, “PNM Resources, Inc. is an electric utility that provides electric generation, transmission and distribution service to its rate-regulated customers. In New Mexico, the utility’s retail electric service territory covers a large area of north central New Mexico, including the cities of Albuquerque, Rio Rancho, and Santa Fe, and certain areas of southern New Mexico. Service to retail electric customers is subject to the jurisdiction of the NMPRC. PNM has decided to stop pursuing wholesale generation contracts although some sales continue to be made to wholesale customers. Service to wholesale customers is regulated by FERC. Regulation encompasses the utility’s electric rates, service, accounting, issuances of securities, construction of major new generation, types of generation resources, transmission and distribution facilities, and other matters. “

Several other equities research analysts have also recently weighed in on PNM. Bank of America lowered their price objective on shares of PNM Resources from $38.00 to $36.00 and set an “underperform” rating for the company in a research report on Tuesday, October 16th. Barclays lifted their price target on shares of PNM Resources from $38.00 to $39.00 and gave the stock a “sell” rating in a research report on Monday, November 19th. Three analysts have rated the stock with a sell rating, five have given a hold rating and one has issued a buy rating to the company. PNM Resources has a consensus rating of “Hold” and an average target price of $39.50.

NYSE:PNM opened at $41.51 on Friday. The stock has a market cap of $3.25 billion, a PE ratio of 21.40, a price-to-earnings-growth ratio of 4.09 and a beta of 0.27. PNM Resources has a 52 week low of $33.75 and a 52 week high of $45.35. The company has a quick ratio of 0.29, a current ratio of 0.37 and a debt-to-equity ratio of 1.17.

PNM Resources (NYSE:PNM) last announced its earnings results on Tuesday, November 6th. The utilities provider reported $1.08 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.04 by $0.04. The business had revenue of $422.67 million during the quarter, compared to analysts’ expectations of $483.08 million. PNM Resources had a net margin of 6.08% and a return on equity of 9.25%. During the same quarter last year, the company posted $0.93 EPS. On average, equities research analysts expect that PNM Resources will post 1.97 EPS for the current year.

Institutional investors have recently added to or reduced their stakes in the stock. Copper Rock Capital Partners LLC bought a new position in PNM Resources in the fourth quarter valued at approximately $14,979,000. Vanguard Group Inc lifted its stake in PNM Resources by 1.1% in the third quarter. Vanguard Group Inc now owns 8,930,685 shares of the utilities provider’s stock valued at $352,315,000 after buying an additional 97,356 shares in the last quarter. Federated Investors Inc. PA lifted its stake in PNM Resources by 84.3% in the third quarter. Federated Investors Inc. PA now owns 558,939 shares of the utilities provider’s stock valued at $22,050,000 after buying an additional 255,679 shares in the last quarter. Clearbridge Investments LLC lifted its stake in PNM Resources by 956,429.5% in the third quarter. Clearbridge Investments LLC now owns 420,873 shares of the utilities provider’s stock valued at $16,603,000 after buying an additional 420,829 shares in the last quarter. Finally, Vanguard Group Inc. lifted its stake in PNM Resources by 1.1% in the third quarter. Vanguard Group Inc. now owns 8,930,685 shares of the utilities provider’s stock valued at $352,315,000 after buying an additional 97,356 shares in the last quarter. 89.94% of the stock is currently owned by institutional investors and hedge funds.

About PNM Resources

PNM Resources, Inc, through its subsidiaries, engages in the energy and energy-related businesses in the United States. It operates through Public Service Company of New Mexico (PNM) and Texas-New Mexico Power Company (TNMP) segments. The PNM segment is primarily involved in the generation, transmission, and distribution of electricity.

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