Why UK's National Grid Shares Are Diving Today
Portfolio Pulse from Lekha Gupta
National Grid plc (NYSE:NGG) shares are down 14.11% after the company reported a £7 billion equity raise and a year-over-year decrease in full-year revenue. Despite a 32% increase in adjusted EPS and a 4% rise in underlying operating profit, gross revenue declined by 8%. The company plans to invest £60 billion in the U.S. and U.K. over the next five years, with a comprehensive financing plan including a £7 billion equity raise. National Grid also announced its intention to sell Grain LNG and National Grid Renewables.
May 23, 2024 | 5:39 pm
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NEGATIVE IMPACT
Trust For Professional Managers ActivePassive International Equity ETF (NYSE:APIE) may see a short-term negative impact due to its exposure to National Grid plc, which has experienced a significant drop in share price.
APIE holds shares of National Grid plc, and the significant drop in NGG's share price could negatively impact the ETF's performance in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
National Grid plc (NYSE:NGG) shares fell 14.11% following the announcement of a £7 billion equity raise and a year-over-year decrease in full-year revenue. Despite positive EPS and profit growth, the decline in gross revenue and the equity raise have negatively impacted investor sentiment.
The significant drop in share price is primarily due to the equity raise and the decrease in full-year revenue, which overshadowed the positive EPS and profit growth. The equity raise dilutes existing shareholders, leading to a negative short-term impact.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Invesco International Dividend Achievers ETF (NASDAQ:PID) may experience a short-term negative impact due to its exposure to National Grid plc, which has seen a significant drop in share price.
PID holds shares of National Grid plc, and the significant drop in NGG's share price could negatively impact the ETF's performance in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50