NextEra Energy stock fell nearly 5% in early trading Tuesday after announcing a plan to sell $2 billion in equity units to finance power projects as electricity demand rises and to pay back debt.
The Florida-based power company, which operates the largest portfolio of renewable energy in the U.S., will issue equity units for $50, which will serve as a contract to purchase shares no later than June 1, 2027.
The utility sector has gained about 8.5% over the past three months, outpacing the 6.2% gain by the S&P 500.
But the utility space has cooled off over the past month, with NextEra falling 5% over that period.
About 71% of Wall Street analysts rate NextEra as the equivalent of buy, while 24% have put a hold on the stock and 4.8% have recommended that investors sell.
Persons:
NextEra, Goldman Sachs, Goldman, Carly Davenport
Organizations:
Energy, Energy Capital Holdings, UBS, Wall Street
Locations:
Florida, U.S