Electric Utilities Face High Short Interest, Otter Tail at 11.91%
Written by Emily J. Thompson, Senior Investment Analyst
Source: seekingalpha
- High Short Interest: Within the utilities sector, Otter Tail (OTTR) and Hawaiian Electric Industries (HE) have the highest short interest at 11.91% and 11.29%, respectively, indicating a significant bearish sentiment among investors towards these stocks.
- Divergent Analyst Ratings: While Seeking Alpha rates Otter Tail as a Hold, Wall Street analysts are bullish, giving it a Buy rating, highlighting a split in market sentiment regarding the stock's future performance.
- Most Shorted Stocks: Among utilities stocks with a market cap over $2B, Otter Tail and Hawaiian Electric Industries rank as the most shorted, whereas Brookfield Infrastructure Partners (BIP) and NextEra Energy (NEE) are the least shorted at 0.21% and 1.55%, respectively, indicating varying investor confidence across the sector.
- Market Trend Insights: With NextEra Energy gaining for seven consecutive sessions, there is strong market interest in large-cap utility stocks' earnings momentum, potentially signaling future investment opportunities.
Analyst Views on BIP
Wall Street analysts forecast BIP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BIP is 41.00 USD with a low forecast of 37.00 USD and a high forecast of 44.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
3 Buy
2 Hold
0 Sell
Moderate Buy
Current: 34.690
Low
37.00
Averages
41.00
High
44.00
Current: 34.690
Low
37.00
Averages
41.00
High
44.00
About BIP
Brookfield Infrastructure Partners L.P. is a global infrastructure company that owns and operates long-life assets in the utilities, transport, midstream and data sectors across the United States, Asia Pacific, and Europe. The Company’s segments include Utilities, Transport, Midstream, and Data. The Utilities segment consists of regulated transmission (natural gas and electricity) and commercial and residential distribution (electricity, natural gas, and water connections) operations. The Transport segment includes infrastructure assets that provide transportation, storage and handling services for merchandise goods, commodities, and passengers. The Transport segment consists of diversified terminals, rail, and toll roads. The Midstream segment comprises systems that provide natural gas transmission, gathering and processing, and storage services. The Data segment includes critical infrastructure that provides telecommunication, fiber, and data storage services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
