Gabelli Funds LLC Reduces Holdings in UK-Based Utilities Provider National Grid as Company Announces Semi-Annual Dividend

Gabelli Funds LLC has recently reduced its holdings in National Grid plc, a UK-based utilities provider that specializes in transmitting and distributing electricity and gas. According to an SEC filing made by the firm, they sold 3,200 shares during the fourth quarter, resulting in a 2.0% decrease in their position. As of their most recent disclosure, Gabelli Funds LLC still owns over 154,000 shares worth $9,332,000 in National Grid.

National Grid is segregated into five different segments: UK Electricity Transmission, UK Electricity Distribution, UK Electricity System Operator, New England, and New York. The company has a primary focus on high-voltage electricity transmission networks specifically within England and Wales.

Recently, National Grid announced that it would be enacting a semi-annual dividend with payment due on August 9th. Investors who were shareholders by June 2nd will receive a generous dividend amounting to $2.3458 per share held—an increase from the previous period’s dividend of $2.09 per share—that represents a yield of 4.5%. Shareholders who purchase shares after June 1st will not be eligible for this particular dividend payout.

National Grid’s long history of consistently reliable dividends makes it one of the most attractive investment opportunities for long-term investors seeking predictable returns on investment and natural efficiencies arising from secured agreements with regulated customers and stable regulatory regimes.

Overall its sturdy position can serve as a model for its competitors in coping with industry transition – winning ongoing challenges as industry shift from centralized power generation to more distributed energy resources – by successfully balancing investments made for network upgrades and innovation in horizontal vertical outcomes at minimal risk exposure.

National Grid: Institutional Investors Drive Recent Changes in Stock Positioning

National Grid: A Look at Recent Changes in Institutional Investors’ Positions

When it comes to the stock market, institutional investors play a significant role in shaping company valuations. National Grid is no exception, and over the past few months, we have seen some interesting changes in institutional investors’ positions.

For example, Natixis Advisors L.P. grew its stake by a staggering 1,034.7% during the fourth quarter alone – now owning 321,301 shares valued at $19,381,000. Goldman Sachs Group Inc. also increased its stake by 17.7% during the first quarter to become one of National Grid’s largest shareholders. Bank of America Corp DE followed suit with an additional holding of 239,938 shares added last quarter.

JPMorgan Chase & Co. raised their position by 11.2% during Q4 as well and now holds over 1.3 million shares worth $79,083,000. Lastly, BNP Paribas Arbitrage SNC purchased a new position amounting to $4,422,000 in Q3 of last year.

Despite this impressive investor activity surrounding National Grid plc (NYSE: NGG), the utility provider’s shares still opened relatively low at $66.99 on Friday morning.

Perhaps this is because National Grid has had mixed reviews from analysts recently; though Royal Bank of Canada took a bullish stance and gave NGG an “outperform” rating back in February of this year.

However, since then there has been more varied feedback as Deutsche Bank Aktiengesellschaft lowered their price objective from GBX 1,100 ($13.67) to GBX 1,080 ($13.43). Credit Suisse Group gave NGG an increased target price from GBX 1,250 ($15.54) to GBX 1,280 ($15.91).

According to stock market data aggregator, Bloomberg.com, three analysts have given NGG shares a “hold” rating with four others assigning it a “buy” rating. The consensus rating, according to the site, is “Moderate Buy” and NGG’s average price target is estimated at $1,183.75.

It will be interesting to see how these different views on National Grid’s stock shape its future valuation. Regardless though, the recent changes in institutional investors’ positions suggest a strengthening of faith in NGG – which could bode well for shareholders in the long term.