Stock Price & Analysis

Analysis and Insights

To determine whether it’s a good time to buy or sell MGE Energy (MGEE) stock, we need to analyze both technical and fundamental factors.

Fundamental Analysis:

MGE Energy recently reported its Q4 earnings, with a GAAP EPS of $0.61 and revenue of $171.41 million. While the EPS showed a slight increase from the previous year, the revenue growth was modest, indicating potential challenges in scaling operations.

The company also offers a consistent dividend, with a quarterly payout of $0.45, providing a yield of 1.91%. However, the yield is relatively low compared to sector peers, which might make it less attractive for income-focused investors.

Technical Analysis:

The stock price has been volatile, closing at $90.44 with a slight decline in the regular market. Key technical indicators such as the RSI (50.03) and MACD (0.26) suggest a neutral trend, with no strong buy or sell signals.

Analyst Sentiment:

Seeking Alpha has downgraded its rating on MGE Energy, suggesting that now is not the time to buy. This downgrade, combined with modest revenue growth, indicates cautious sentiment among analysts.

Conclusion:

Given the modest revenue growth, analyst downgrade, and neutral technical indicators, it may be prudent to hold off on buying MGE Energy stock at this time. Investors should wait for clearer signs of growth or improved analyst sentiment before considering a purchase.

Price Prediction for MGEE Stock in 2025

Based on current trends and analysis, the price prediction for MGEE stock in 2025 is $92.

The stock is expected to rise due to its approach to the upper Fibonacci resistance level of $94.12 and slight bullish MACD signals. However, the Underweight rating from Morgan Stanley and moderate growth prospects may limit significant upside.

The S1 support level for MGEE Stock is $90.02 ,The R1 resistant level for MGEE Stock is $94.13.

As of the end of day on 2025-03-26, the price of MGEE Stock was $90.04.

The target price for MGEE Stock according to analyst rating is 77.50, with the highest price target at 78.00 and the lowest at 77.00. Analysts have a Moderate Sell rating on MGEE Stock overall.

The market cap of MGEE is $3.3B.

MGEE appears overvalued based on its high valuation metrics and inconsistent earnings growth. Its P/E ratio exceeds industry averages, and EV/EBITDA is elevated compared to peers. Recent Q4 earnings showed revenue growth but a net income decline, raising concerns about profitability consistency. The stock's volatility and lower dividend yield compared to industry averages further support the overvaluation thesis. Seeking Alpha's downgrade suggests caution, indicating now may not be the right time to buy.

MGE Energy, Inc. is a public utility holding company. The Company's segments include Regulated electric utility operations; Regulated gas utility operations; Nonregulated energy operations, and Transmission investments. The Regulated electric utility operations segment is engaged in generating, purchasing, and distributing electricity through Madison Gas and Electric Company (MGE). The Regulated gas utility operations segment is engaged in purchasing and distributing natural gas through MGE. The Nonregulated energy operations segment owns and leases electric generating capacity that assists MGE through MGE Energy's wholly owned subsidiaries MGE Power Elm Road and MGE Power West Campus. The Transmission investments segment includes the investment in American Transmission Company LLC, which is engaged in the business of providing electric transmission services in Wisconsin, and ATC Holdco LLC, which facilitate out-of-state electric transmission development and investments.

MGE Energy (MGEE) stock is predicted to reach $120-$140 by 2030, driven by steady revenue growth and investments in renewable energy. The company's Q4 2024 revenue of $171.41 million and consistent dividend payments support this outlook.

MGEE has a total of 719 employees.