Shares of NiSource Inc. (NYSE:NI) recorded 0.84% gain during trading session on October 18th, 2018. The script traded as low as $24.99 and last traded at $25.24. 2.71 million shares changed exchanged hands during trading, an increase of 23.32% from the 30-day average session volume of 3.53M shares. The firm had previously closed at $25.03. The company has $368.12M outstanding shares, a price-to-earnings ratio of 30.86, price-to-earnings-growth ratio of 1.84 and a beta of 0.15. The company has a RSI of 48.51, ATR of 0.58 and a volatility of 2.15% this week. NI has a 52 week low price of $22.44 and a 52 week high price of $28.11.
Investors have identified the tech company NiSource Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around 9.29B, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
NiSource Inc. (NI) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For NI, the company has in raw cash 81.1 million on their books with 1.2 billion currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 20.31 billion total, with 14.84 billion as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
NI were able to record -41.2 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 36.4 million. In cash movements, the company had a total of 421.3 million as operating cash flow.
Potential earnings growth for NiSource Inc. (NI)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, NiSource Inc. recorded a total of 1.01 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 0.02 coming in sequential stages and their sales for the third quarter reducing by -0.42.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 457.9 million trying to sell their products during the last quarter, with the result yielding a gross income of 549.1 million. This allows shareholders to hold on to 355.16 million with the revenue now reading 0.07 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.40 cents a share).
Is the stock of NI attractive?
Having a look at the company’s valuation, the company is expected to record 1.34 total earnings per share during the next fiscal year. Taking a look at the median price to earnings ratio, this means their stock price will be in the region of 18.20 per share. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on NI sounds very interesting.
In related news, EVP & Chief Legal Officer Hightman Carrie J sold 27,000 shares of the company’s stock in a transaction that recorded on August 10th, 2018. The sale was performed at an average price of 26.75, for a total value of 722,334. As the sale deal closes, the EVP & Chief Financial Officer Hightman Carrie J now sold 2,400 shares of the company’s stock, valued at 63,600. Also, EVP, Gas Business Seg & CCO Vegas Pablo bought 14,500 shares of the company’s stock in a deal that was recorded on May 25th, 2018. The shares were bought at an average price of 25.02 per share, with a total market value of 44,049. Following this completion of acquisition, the Vice President, Audit now holds 6,732 shares of the company’s stock, valued at 166,087. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.30%.
3 out of 14 analysts covering the stock have rated it a Buy, while 6 have maintained a Hold recommendation on NiSource Inc. stock. 0 analysts has assigned a Sell rating on the NI stock. The 12-month mean consensus price target for the company’s shares has been set at $27.00.