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New Jersey Resources Corporation (NYSE:NJR): A Fundamentally Weighted Stock for Long-Term Investors

New Jersey Resources Corporation (NYSE:NJR) has a beta of 0.53, a 12-month trailing P/E ratio of 16.62, and a growth ratio of 2.77. The stock’s Relative Strength Index (RSI) is 51.53, with weekly volatility at 1.46% and ATR at 0.91. The NJR stock’s 52-week price range has touched low of $25.87 and a $43.94 high. Its shares traded lower over the last trading session, losing -0.05% on 05/20/21. The shares fell to a low of $42.23 before closing at $42.49. Intraday shares traded counted 0.46 million, which was 15.45% higher than its 30-day average trading volume of 539.54K. NJR’s previous close was $42.51 while the outstanding shares total 96.25M.

Investors have identified the Utilities – Regulated Gas company New Jersey Resources Corporation as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $4.09 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

New Jersey Resources Corporation (NJR) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For NJR, the company has in raw cash 57.65 million on their books with 31.14 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 535.23 million total, with 416.07 million as their total liabilities.

NJR were able to record 110.4 million as free cash flow during the 08/05/2021 quarter of the year, this saw their quarterly net cash flow reduce by -60.45 million. In cash movements, the company had a total of 356.29 million as operating cash flow.

Potential earnings growth for New Jersey Resources Corporation (NJR)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/05/2021 quarter of the year, New Jersey Resources Corporation recorded a total of 802.19 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 20.27% coming in sequential stages and their sales for the 08/05/2021 quarter increasing by 43.37%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 600.98 million trying to sell their products during the last quarter, with the result yielding a gross income of 201.21 million. This allows shareholders to hold on to 96.25M with the recently reported earning now reading 1.56 cents per share. This is a figure that compared to analyst’s prediction for their 08/05/2021 (1.77 cents a share).

Having a look at the company’s valuation, the company is expected to record 2.25 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on NJR sounds very interesting.

Is the stock of NJR attractive?

In related news, Director, HOWARD M WILLIAM JR sold 5,580 shares of the company’s stock in a transaction that recorded on Mar 19. The sale was performed at an average price of 40.16, for a total value of 224,093. As the sale deal closes, the Senior VP and CFO, Migliaccio Patrick J. now sold 3,811 shares of the company’s stock, valued at 141,426. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.20%.

4 out of 10 analysts covering the stock have rated it a Buy, while 5 have maintained a Hold recommendation on New Jersey Resources Corporation. 0 analysts has assigned a Sell rating on the NJR stock. The 12-month mean consensus price target for the company’s shares has been set at $43.00.

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