Dominion Energy ( D, $74.05) natural gas transmission business will be bought by Berkshire Hathaway at $10 bn EV
Dominion Energy has a deal with Warren Buffett’s Berkshire Hathaway . Berkshire has agreed to buy the company's natural gas transmission and storage business for nearly $10 billion in cash and debt.
The transaction amounts to nearly $10-billion in enterprise value. Berkshire will pay $4 billion in cash and assume another $5.7 billion of Dominion’s debt.
Expected to close in the fourth quarter, the deal is awaiting regulatory approvals.
Meanwhile, Dominion and Duke Energy announced that they have canceled their Atlantic Coast Pipeline project.
According to Tickeron's analysis on D:
Technical Analysis (Indicators)
Bearish Trend Analysis
The RSI Indicator appears to be shifting from an Uptrend to a Downtrend. In 17 of 38 cases where D's RSI indicator exited the overbought zone, the price fell further within the following month. The odds of a continued Downtrend are 45%.
The Momentum Indicator moved below the 0 level on June 12, 2020. Traders may consider selling the ticker, shorting the ticker, or exploring put options. In 37 of 93 cases where D's Momentum Indicator fell below the 0 level, its price fell further within the subsequent month. The odds of a continued Downtrend are 40%.
Bullish Trend Analysis
The Stochastic Indicator suggests the ticker price trend may be in a reversal from a Downtrend to an Uptrend. 21 of 51 cases where D's Stochastic Indicator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued Uptrend are 41%.
The price moved above its 50-day Moving Average, which indicates a change from a Downtrend to an Uptrend. In 20 of 42 similar backtested cases where D's price crossed above its 50-day Moving Average, its price rose further within the subsequent month. The odds of a continued Uptrend are 48%.
The 50-day Moving Average crossing above its 200-day Moving Average indicates a buy signal, due to the trend repositioning higher. In 1 of 2 cases where D's 50-day Moving Average crossed above its 200-day Moving Average, its price rose further within the subsequent month. The odds of a continued Uptrend are 50%.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where D advanced for three days, in 151 of 365 cases, the price rose further within the following month. The odds of a continued Uptrend are 41%.
The lower Bollinger Band was broken -- a price increase is expected as the ticker heads toward the middle band, which indicates a buy or call consideration for traders. In 16 of 37 cases where D's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued Uptrend are 43%.
The Aroon Indicator entered an Uptrend today. In 59 of 307 similar cases where D Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 19%.
Fundamental Analysis (Ratings)
Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 68%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.71.
The Tickeron Valuation Rating of 94 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.45) is normal, around the industry mean (1.78). P/E Ratio (39.63) is within average values for comparable stocks, (26.99). D's Projected Growth (PEG Ratio) (25.35) is very high in comparison to the industry average of (4.46). Dividend Yield (4.43) settles around the average of (3.04) among similar stocks. D's P/S Ratio (3.54) is slightly higher than the industry average of (1.98).
The Tickeron PE Growth Rating for this company is 78 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 50 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 48 (best 1 - 100 worst), indicating steady price growth. D’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 45 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is 33 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 64, placing this stock better than average.
D sees MACD Histogram just turned negative
D saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on September 18, 2024. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 50 instances where the indicator turned negative. In of the 50 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for D moved out of overbought territory on September 18, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 30 similar instances where the indicator moved out of overbought territory. In of the 30 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where D declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
D broke above its upper Bollinger Band on September 03, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 02, 2024. You may want to consider a long position or call options on D as a result. In of 89 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where D advanced for three days, in of 315 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 193 cases where D Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 77%.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. D’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.599) is normal, around the industry mean (1.714). P/E Ratio (19.823) is within average values for comparable stocks, (23.466). D's Projected Growth (PEG Ratio) (4.500) is slightly higher than the industry average of (2.620). Dividend Yield (0.054) settles around the average of (0.074) among similar stocks. P/S Ratio (2.857) is also within normal values, averaging (3.533).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. D’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 63, placing this stock worse than average.
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a producer of electricity, natural gas and related services
Industry ElectricUtilities