Stock of the Day

September 3, 2021

National Grid (NGG)

$61.27
+$0.17 (+0.3%)
Market Cap: $59.78B

About National Grid

National Grid plc transmits and distributes electricity and gas. It operates through UK Electricity Transmission, UK Electricity Distribution, UK Electricity System Operator, New England, New York, National Grid Ventures, and Other segments. The UK Electricity Transmission segment provides electricity transmission and construction work services in England and Wales. The UK Electricity Distribution segment offers electricity distribution services in Midlands, and South West of England and South Wales. The UK Electricity System Operator segment provides balancing services for supply and demand of electricity on Great Britain's electricity transmission system; and acts as an agent on behalf of transmission operators. The New England segment offers electricity and gas distribution, and electricity transmission services in New England. The New York segment provides electricity and gas distribution, and electricity transmission services in New York. The National Grid Ventures segment provides transmission services through electricity interconnectors and LNG importation at the Isle of Grain, as well as sale of renewables projects. The Other segment engages in the leasing and sale of commercial property, as well as insurance activities in the United Kingdom. The company was founded in 1990 and is headquartered in London, the United Kingdom.

National Grid Bull Case

Here are some ways that investors could benefit from investing in National Grid plc:

  • Recent acquisition of 40,700 shares by Lockheed Martin Investment Management Co. indicates strong institutional interest, suggesting confidence in the company's future performance.
  • Citigroup upgraded National Grid plc from a "neutral" rating to a "buy" rating, reflecting positive sentiment from analysts and potentially leading to increased investor interest.
  • The stock is currently trading at $61.50, which is within a range that may attract value investors looking for opportunities in the utilities sector.
  • National Grid plc has shown resilience with a debt-to-equity ratio of 1.18, indicating a balanced approach to leveraging debt while maintaining financial stability.
  • Institutional ownership stands at 4.68%, which can be a positive indicator of the stock's credibility and stability among larger investors.

National Grid Bear Case

Investors should be bearish about investing in National Grid plc for these reasons:

  • The stock has experienced a decline of 0.3% recently, which may signal short-term volatility and uncertainty in the market.
  • With a 52-week high of $73.40 and a low of $55.13, the stock has shown significant price fluctuations, which could indicate instability and risk for investors.
  • Despite recent upgrades, only one analyst has rated the stock with a hold rating, suggesting that there may be mixed opinions on its future performance.
  • Recent trading volumes have been lower than average, which could indicate reduced investor interest and liquidity issues.
  • National Grid plc operates in a highly regulated industry, which can lead to uncertainties regarding future profitability and operational flexibility.

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