American Century Companies reduces Sempra holdings by over a third in second quarter

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It is also involved in the development of renewable energy projects and operates one of the largest natural gas storage facilities in the United States. The company’s stock, listed as SRE on the New York Stock Exchange, has been a popular choice among investors due to its strong financial performance and stable dividend payouts.

However, recent news reveals that one major investor, American Century Companies Inc., has significantly reduced its holdings in Sempra ($NYSE:SRE) during the second quarter. This reduction amounts to a decrease of 33.7% in the company’s stake, as reported in their 13F filing. This move by American Century Companies Inc. has caught the attention of both investors and analysts, causing them to speculate about the reasons behind this decision and its potential impact on Sempra’s stock performance. One possible explanation for this reduction in Sempra holdings could be related to the overall market conditions during the second quarter. This may have prompted American Century Companies Inc. to rebalance their portfolio and reallocate their assets to minimize risks. Another factor that may have influenced this decision is Sempra’s recent announcement of its plans to sell off its South American businesses. This move is part of Sempra’s strategy to focus on its core businesses in the United States and reduce its debt. On the other hand, some experts believe that American Century Companies Inc.’s reduction in Sempra holdings may be a sign of a lack of confidence in the company’s future prospects. Despite its strong financial performance, Sempra has faced some challenges in recent years, including the California wildfires that put a strain on its electrical infrastructure and resulted in billions of dollars in liabilities. It is worth noting that American Century Companies Inc. is not the only major investor to reduce its stake in Sempra during the second quarter. Other prominent investors, such as BlackRock Inc. and Vanguard Group Inc., have also reported decreases in their holdings. However, it is important to remember that these filings are made several weeks after the end of the quarter and may not reflect the latest changes in the investors’ positions. In conclusion, American Century Companies Inc.’s reduction in Sempra holdings has raised some concerns among investors, but the exact reasons behind this decision are still unclear. It is essential to keep an eye on the company’s future financial performance and any potential developments to fully understand the implications of this move.

Price History

American Century Companies Inc., a global investment management firm, has significantly reduced its holdings in Sempra Energy during the second quarter of this year. This move was reflected in the recent stock market performance of SEMPRA, which opened at $82.83 on Friday and closed at $83.18, a 0.81% increase from the previous closing price of $82.51. While specific details on the exact amount of shares sold have not been disclosed, this significant decrease in ownership suggests that the investment firm may have lost confidence in the company’s future prospects. The company attributed this decrease to various factors, including higher operating expenses and lower revenue from its utilities and infrastructure businesses. Furthermore, Sempra Energy has faced criticism for its handling of the Aliso Canyon natural gas leak and the subsequent relocation of residents in the affected area.

This incident has led to a negative public perception of the company and potentially impacted its financial performance. It also raises questions about the future outlook and potential challenges for Sempra Energy as it navigates through the changing landscape of the energy industry. Investors will be closely monitoring any further developments and announcements from both companies in the coming months. Live Quote…

About the Company

Income Snapshot

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

Cash Flow Snapshot

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

Balance Sheet Snapshot

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

Key Ratios Snapshot

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

Analysis

After conducting a thorough evaluation of SEMPRA‘s overall health, I can confidently say that this company has some strong points, but also some areas of concern. According to our Star Chart analysis, SEMPRA is particularly strong in terms of its assets, dividend performance, and growth potential. These are all positive indicators of a healthy and thriving company. However, when looking at profitability, SEMPRA scores in the medium range. This means that while it is still performing well, there is room for improvement in this aspect. Additionally, our evaluation shows that SEMPRA has an intermediate health score of 4/10. This takes into account the company’s cashflows and debt levels, and while it is not a high score, it does suggest that SEMPRA may have the ability to pay off its debt and fund future operations. In terms of our classification system, SEMPRA falls under the category of ‘cheetah’. This type of company is one that has achieved high revenue or earnings growth, but may be considered less stable due to lower profitability. This means that while SEMPRA is currently performing well in terms of growth, there may be some risks associated with investing in this company. Based on our evaluation, we believe that investors who are interested in companies with strong assets and growth potential may be interested in SEMPRA. However, it is important for investors to carefully assess the risks associated with SEMPRA’s lower profitability and intermediate health score before making any investment decisions. Overall, SEMPRA shows potential for growth and success, but it is important to carefully consider all factors before investing. More…

Peers

Sempra Energy is a Fortune 500 energy services holding company based in San Diego, California. The Sempra Energy companies’ 15,000 employees serve approximately 32 million consumers worldwide. Sempra Energy’s utilities, San Diego Gas & Electric (SDG&E) and Southern California Gas Company (SoCalGas), are regulated by the California Public Utilities Commission. Sempra Energy’s other businesses include Sempra Commodities, Sempra Generation and Sempra LNG.

– Atmos Energy Corp ($NYSE:ATO)

Atmos Energy Corporation is an American natural gas and electricity company headquartered in Dallas, Texas. The company’s operations include natural gas production, transmission and distribution, as well as electricity generation and distribution. As of December 31, 2020, Atmos Energy Corporation operated in 11 states and served approximately 3.6 million natural gas and electricity customers.

Atmos Energy Corporation’s market capitalization is $14.27 billion as of 2022. The company’s return on equity is 6.28%.

Atmos Energy Corporation is one of the largest natural gas and electricity companies in the United States. The company is headquartered in Dallas, Texas and operates in 11 states. As of December 31, 2020, Atmos Energy Corporation served approximately 3.6 million natural gas and electricity customers.

– REN-Redes Energeticas Nacionais Sgps SA ($LTS:0KBT)

REN-Redes Energeticas Nacionais Sgps SA is a Portugal-based holding company engaged in the electricity and gas sector. The Company operates in three segments: Gas and Electricity Transmission, Distribution and Supply, and Renewable Energy. The Gas and Electricity Transmission segment includes the transport of electricity and natural gas through high-voltage lines and pipelines, respectively. The Distribution and Supply segment handles the distribution of electricity and natural gas to end customers, as well as the resale of energy to energy suppliers. The Renewable Energy segment focuses on the generation of electricity from renewable sources, such as wind, solar and hydro power. As of December 31, 2011, REN-Redes Energeticas Nacionais SGPS SA operated through a network of 12,955 kilometers of high voltage lines and 8,290 kilometers of pipelines.

– Alliant Energy Corp ($NASDAQ:LNT)

Alliant Energy Corp is a utility company that generates and distributes electric and natural gas services to customers in the Midwest region of the United States. As of 2022, the company had a market capitalization of $12.63 billion and a return on equity of 9.62%. Alliant Energy Corp is headquartered in Madison, Wisconsin.

Summary

American Century Companies Inc. reduced its ownership of Sempra by 33.7% in the second quarter. This suggests that the investment firm may not have a positive outlook on the company’s future performance. It could also indicate that there may be better investment opportunities available elsewhere. Investors should carefully consider this information when making decisions about whether to invest in Sempra.

It may be wise to do further research on the company’s financials and market trends before making any investment decisions. Overall, this decrease in ownership by a major investment firm may raise some concerns for potential investors in Sempra.