A dark pool trade occurred in ETR stock at 3:47 PM that looks like a buy order. As a reminder, we can see dark pool trades but we can’t see if it was a buy or sell order. The method I use to determine if it is a buy or sell order is that if the trade occurs during regular trading hours, how does the price of the stock respond to the dark pool print. I also look at options flow if the stock has options contracts.
The dark pool print was valued at $25 million. Notice how ETR stock immediately reversed and headed higher after the print.
On May 11, 2020, Entergy Corporation (NYSE: ETR) reported first quarter 2020 earnings of 59 cents per share on an as-reported basis and $1.14 per share on an adjusted basis (non-GAAP).
“The past few months have presented extraordinary circumstances, and we extend our well-wishes to all affected. We also extend our deepest thanks to everyone working tirelessly to help those in need,” said Entergy Chairman and Chief Executive Officer Leo Denault. “Providing safe, reliable power is essential, especially during times like these; that’s why at Entergy we plan and prepare for the extraordinary, and our response has been effective. We are meeting the needs and expectations of our customers and communities, our major projects remain on track, and our capital plan is unchanged. Our first quarter results were solid, and recent events have not changed our objective to be the premier utility that delivers sustainable value for our stakeholders.”
Business highlights included the following:
- Entergy affirms 2020 adjusted EPS guidance of $5.45 to $5.75.
- The Lake Charles Power Station was placed in service on budget and ahead of schedule.
- Entergy Texas issued an RFP for a 1,000MW to 1,200MW CCGT and Entergy Louisiana issued an RFP for 250MW of solar resources.
- Entergy Mississippi received approval for the Sunflower Solar project and Entergy Arkansas received approval for the Searcy Solar project.
- Entergy Mississippi made its annual formula rate plan filing.
- Entergy Texas filed for an increase in its distribution cost recovery factor.
- Indian Point Unit 2 was permanently shutdown.
- The Entergy Charitable Foundation established the COVID-19 Emergency Relief Fund.
On May 12, 2020, Wells Fargo analyst Neil Kalton lowered the firm’s price target on Entergy to $120 from $150 to reflect materially lower peer group multiples, while keeping an Overweight rating on the shares. The analyst notes that the company affirmed 2020 EPS guidance of $5.45-$5.75 as projected cost savings of $100M are anticipated to largely offset the negative revenue impact of $120M-$140M from lower expected retail sales due, in large part, to COVID-19.
On April 27, 2020, Argus analyst Jacob Kilstein upgraded Entergy to Buy from Hold with a $115 price target. The analyst notes that he is positive on Utilities relative to other sectors in the current environment, as low interest rates make utility dividends more attractive. Kilstein also expects the demand for electricity and to hold up better during the pandemic than discretionary consumer spending. At a 20.1-times his expected FY20 earnings, the analyst adds that the valuation on Entergy is “modest” relative to the higher multiples of the company’s slower growing peers.