NJR Stock Intrinsic Value – Cubist Systematic Strategies LLC significantly decreases stake in New Jersey Resources Co. in Q2

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New Jersey Resources ($NYSE:NJR) Co. is a publicly traded energy company based in New Jersey. It operates in the energy services, clean energy, and natural gas sectors, providing services to customers in the Northeastern United States. The company has seen consistent growth over the past few years, with a strong financial track record and a reliable dividend payout for its investors.

However, in the second quarter of this year, one major investor, Cubist Systematic Strategies LLC, made a significant move that caught the attention of the market. This move was quite unexpected, as Cubist Systematic Strategies LLC had been a major shareholder in the company for some time. The reason behind this decrease in stake is not immediately clear, as Cubist Systematic Strategies LLC has not provided any specific rationale for their decision. It could be a part of their overall investment strategy, or perhaps they have identified other opportunities in the market that they believe will provide better returns on their investment. This decrease in stake by a major investor has caused some concern among other shareholders of New Jersey Resources Co. The sudden sell-off may have raised questions about the overall health and potential growth of the company. However, it’s important to note that despite this significant decrease in stake, Cubist Systematic Strategies LLC still holds a sizeable number of shares in New Jersey Resources Co., indicating that they still have confidence in the company’s performance. Overall, while this news may have caused some initial market turbulence for New Jersey Resources Co., it is important to keep in mind that it is just one investor’s decision. The company’s fundamentals remain strong, and it continues to operate successfully in its various sectors. It will be interesting to see how the market reacts to this news and how New Jersey Resources Co. continues to perform in the coming quarters.

Stock Price

This news was announced on Friday when the stock market opened. This move by the investment firm indicates a change in their investment strategy and sentiment towards the company.

However, the stock has since plateaued, with most analysts giving it a hold rating. New Jersey Resources Co., on its part, has been actively expanding its operations and portfolio in recent years. In May this year, the company announced its acquisition of Leaf River Energy Center, a natural gas-fired electric generating plant located in Mississippi. This acquisition was in line with the company’s goal of diversifying its energy sources and meeting the growing demand for clean energy. However, it is important to note that New Jersey Resources Co. continues to expand its operations and make strategic acquisitions, indicating a positive outlook for the company in the long run. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for NJR. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for NJR. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for NJR. More…

Key Ratios Snapshot

Some of the financial key ratios for NJR are shown below. More…

Analysis – NJR Stock Intrinsic Value

As an analyst at GoodWhale, I have conducted a thorough examination of the fundamentals of NEW JERSEY RESOURCES. This analysis has allowed me to come up with a fair value for the company’s stock, which is currently trading at $46.92. Based on our proprietary Valuation Line, the fair value of NEW JERSEY RESOURCES share is estimated to be around $48.6. This indicates that the stock is currently undervalued by approximately 3.5%. This undervaluation presents a potential opportunity for investors looking to add NEW JERSEY RESOURCES stock to their portfolio. In order to determine our fair value estimate, we took into consideration various factors such as the company’s financial performance, industry trends, and economic conditions. We also analyzed the company’s management team, competitive advantages, and growth potential. Overall, our analysis suggests that NEW JERSEY RESOURCES is a solid company with strong fundamentals and potential for future growth. The current market price of its stock represents a good buying opportunity for investors as it is trading below its fair value. As always, we recommend conducting further research and considering your individual investment goals before making any investment decisions. More…

Peers

New Jersey Resources Corp (NJR) is engaged in the business of providing energy services to its customers through the distribution of natural gas and electricity, as well as through the sale of energy-related services and products. NJR’s competitors in these businesses include Hsin Tai Gas Corp, South Jersey Industries Inc, Consolidated Edison Inc, and other electric and gas utilities.

– Hsin Tai Gas Corp ($TPEX:8917)

Hsin Tai Gas Corp is a leading provider of gas and electricity in Taiwan. The company has a market cap of 14.64B as of 2022 and a return on equity of 10.58%. Hsin Tai Gas Corp is a vertically integrated energy company that engages in the exploration, production, transmission, and distribution of natural gas and electricity in Taiwan. The company is also involved in the import and export of natural gas, crude oil, and refined products.

– South Jersey Industries Inc ($NYSE:SJI)

South Jersey Industries is an energy services holding company that provides gas transportation, distribution and storage services through its subsidiaries. The company’s market cap is $4.21 billion and its ROE is 9.62%. South Jersey Industries is headquartered in Folsom, New Jersey.

– Consolidated Edison Inc ($NYSE:ED)

Consolidated Edison Inc is a holding company that provides electric, gas, and steam services to customers in New York. The company has a market capitalization of $30.09 billion and a return on equity of 8.28%. Consolidated Edison Inc is one of the largest investor-owned energy companies in the United States.

Summary

Cubist Systematic Strategies LLC, a leading investment firm, recently decreased its holdings in New Jersey Resources Co. by a significant 89.5% in the second quarter. This move reflects a cautious stance on the stock’s potential performance in the near future. Despite this reduction, New Jersey Resources Co. continues to be a popular choice among investors due to its strong financials and steady growth in the energy sector. However, with the current market conditions and potential risks associated with the industry, it is important for investors to conduct a thorough analysis before making any investment decisions in New Jersey Resources Co.