NorthWestern (NWE) Stock Closed Higher After Offering of Common Stock

NEW YORK (TheStreet) -- Shares of NorthWestern Corp. (NWE)  closed up 5.04% to $54.35 after announcing a public offering of common stock at $51.50 per share.

The electricity and natural gas provider announced yesterday that it had priced a public offering of 6,766,990 shares of its common stock at $51.50 per share, an offering expected to close on or about November 10, the company said.

The company intends to use the net proceeds from the offering as the financing for the pending acquisition of eleven hydro plants in Montana.

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Separately, TheStreet Ratings team rates NORTHWESTERN CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate NORTHWESTERN CORP (NWE) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Multi-Utilities industry. The net income increased by 93.0% when compared to the same quarter one year prior, rising from $15.65 million to $30.19 million.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • Net operating cash flow has significantly increased by 93.61% to $80.40 million when compared to the same quarter last year. In addition, NORTHWESTERN CORP has also vastly surpassed the industry average cash flow growth rate of -8.66%.
  • NORTHWESTERN CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, NORTHWESTERN CORP reported lower earnings of $2.45 versus $2.66 in the prior year. This year, the market expects an improvement in earnings ($2.68 versus $2.45).
  • NWE, with its decline in revenue, underperformed when compared the industry average of 7.8%. Since the same quarter one year prior, revenues slightly dropped by 3.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • You can view the full analysis from the report here: NWE Ratings Report

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