Is NiSource Inc. (NI) Stock an Incredible Bargain?

On December 03, 2019, NiSource Inc. (NYSE:NI) shares gained 0.88% or 0.23 points to close at $26.41 with a thin trading volume of 3.18 million shares. It opened the trading session at $26.31, the shares rose to $26.48 and dropped to $26.265, the range by which the price of stock traded the whole day. The company now has a market cap of $9.9 billion and currently has 374.67 million outstanding shares. NiSource Inc. (NI) stock has plunged -4.48 percent of market value in 21 trading days.

NI stock’s trailing 3-year beta is 0.17, meaning there will be a lower rate of return, although posing a lower risk. The part of a firm’s profit given to each outstanding share of regular stock was $1.23 share in the trailing 52 weeks. The stock’s value surged 4.18 percent year to date (YTD) compared to a decline of -0.04 percent in 52 week’s period. The firm’s shares are still trading -13.89 percent below its 1-year high of $30.67 and 8.39 percent up from 52-week low of $24.36. The average consensus ranking on the company is 2.3, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.

NiSource Inc. (NI) is most likely going to rise 14.24 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $32-month high price target. This represents a whopping 21.17 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $30, which means a return possibility of 13.59 percent in comparison with the closing price of the stock of $26.41 on December 03. The lowest price set for the stock is $28 — just above 6.02 percent from NI share price now.

Past records have indicated that shares in NiSource Inc. rose on 21 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of NI’s Q4 earnings on February 19. Analysts are predicting revenue to climb 0.6 percent to $1.47B in the financial fourth quarter, while EPS will soar by about 10.53 percent to $0.42 per share. In the last quarter, it earnings of $0 per share came worse than the $0.05776, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter missed the target of $1.37B analysts had expected. Earnings are seen to rise by -121 percent this year, 6.16 percent in the coming year and the trend continues by 4.2 percent every year in the next 5 years.

Let’s take a glimpse at some insider activity at NiSource Inc. (NYSE:NI) and observe the pattern. The earliest insider trade happened on 08/14/2019. Jesanis Michael E parted with a total of 6 thousand shares of the firm at average share price of $29.01. The total amount for the sale was set at $174.06 thousand. On completing this exchange, the Director account balance was 33 thousand shares. The stock lost -9.76 percent from that insider sale. On 08/06/2019, Brown Donald Eugene, EVP & CFO, did a sale of 10 thousand shares at a price of $28.04 per share. This got rid of 280.4 thousand shares from the insider’s fortune and the stock experienced a -6.63 percent retreat in price since the news became public. This exchange saw 79 thousand shares get out from the EVP & CFO account.

On 08/05/2019, EVP and President, NIPSCO Sistovaris Violet recorded a sale transaction valued at $1.18 million. The sale at $29.16 a share has eliminated 40.41 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed -10.22 percent decrease since the transaction reporting date. The company insider is left with 125.37 thousand shares remaining in the account. Vegas Pablo, who works as EVP & President, Gas Utilities at the company, performed a sale of 39.62 thousand shares in a transaction worth $1.19 million. The disposal recorded on 08/02/2019 was priced at $29.94 per share. The stock price plunged -12.56 percent since the transaction. Vegas Pablo currently holds a stake of 60.32 thousand in NI stock which is worth $1.59 million after the insider selling.

The stock is lingering around the initial support level of $26.29. After this, the following support is at the zone of $26.17. Up until the time the NI stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 40.02 on the daily chart, and this may be a cause for concern. In case the price goes below $26.17 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $26.5 level may cause a pull-back move approaching $26.6 mark.

NiSource Inc. (NI) shares are trading at a P/E ratio of 21.5 times earnings posted in the trailing 12 months. The industry NI deals with has an average P/E of 24.5. Its P/B ratio is standing at 2X compared to the 2.2 industry average. It is additionally sporting a 1.9 on the Price-to-Sales ratio, compared to the industry’s P/S average of 1.7. NiSource Inc. has a 69.1% gross profit margin, with its operating margin around 16.1%. Alongside this, the company’s net profit margin currently stands at 8.7%.