Fintel reports that on May 31, 2023, Goldman Sachs maintained coverage of nVent Electric (NYSE:NVT) with a Buy recommendation.

Analyst Price Forecast Suggests 20.67% Upside

As of May 11, 2023, the average one-year price target for nVent Electric is 54.06. The forecasts range from a low of 50.50 to a high of $57.75. The average price target represents an increase of 20.67% from its latest reported closing price of 44.80.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for nVent Electric is 2,975MM, an increase of 0.68%. The projected annual non-GAAP EPS is 2.50.

nVent Electric Declares $0.18 Dividend

On May 12, 2023 the company declared a regular quarterly dividend of $0.18 per share ($0.70 annualized). Shareholders of record as of July 21, 2023 will receive the payment on August 4, 2023. Previously, the company paid $0.18 per share.

At the current share price of $44.80 / share, the stock’s dividend yield is 1.56%.

Looking back five years and taking a sample every week, the average dividend yield has been 2.62%, the lowest has been 1.52%, and the highest has been 5.08%. The standard deviation of yields is 0.68 (n=230).

The current dividend yield is 1.55 standard deviations below the historical average.

Additionally, the company’s dividend payout ratio is 0.27. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company has not increased its dividend in the last three years.

What is the Fund Sentiment?

There are 960 funds or institutions reporting positions in nVent Electric. This is an increase of 60 owner(s) or 6.67% in the last quarter. Average portfolio weight of all funds dedicated to NVT is 0.30%, a decrease of 1.07%. Total shares owned by institutions decreased in the last three months by 1.65% to 176,429K shares. The put/call ratio of NVT is 0.52, indicating a bullish outlook.

What are Other Shareholders Doing?

Franklin Resources holds 5,587K shares representing 3.37% ownership of the company. In it’s prior filing, the firm reported owning 5,619K shares, representing a decrease of 0.56%. The firm decreased its portfolio allocation in NVT by 76.23% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 5,153K shares representing 3.11% ownership of the company. In it’s prior filing, the firm reported owning 5,067K shares, representing an increase of 1.67%. The firm increased its portfolio allocation in NVT by 4.82% over the last quarter.

IJH – iShares Core S&P Mid-Cap ETF holds 5,139K shares representing 3.10% ownership of the company. In it’s prior filing, the firm reported owning 5,144K shares, representing a decrease of 0.10%. The firm increased its portfolio allocation in NVT by 6.73% over the last quarter.

FRDAX – Franklin Rising Dividends Fund Advisor Class holds 4,935K shares representing 2.98% ownership of the company. In it’s prior filing, the firm reported owning 5,009K shares, representing a decrease of 1.50%. The firm increased its portfolio allocation in NVT by 6.91% over the last quarter.

Nuveen Asset Management holds 4,747K shares representing 2.87% ownership of the company. In it’s prior filing, the firm reported owning 3,854K shares, representing an increase of 18.82%. The firm increased its portfolio allocation in NVT by 31.87% over the last quarter.

nVent Electric Background Information
(This description is provided by the company.)

nVent is a leading global provider of electrical connection and protection solutions. The Company believes its inventive electrical solutions enable safer systems and ensure a more secure world. It designs, manufactures, markets, installs and services high performance products and solutions that connect and protect some of the world’s most sensitive equipment, buildings and critical processes. The Company offers a comprehensive range of enclosures, electrical connections and fastening and thermal management solutions across industry-leading brands that are recognized globally for quality, reliability and innovation. Its principal office is in London and its management office in the United States is in Minneapolis. Its robust portfolio of leading electrical product brands dates back more than 100 years and includes nVent CADDY, ERICO, HOFFMAN, RAYCHEM, SCHROFF and TRACER.

Key filings for this company:

• UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K

This article originally appeared on Fintel

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.