Candriam Reduces Stake in Ormat Technologies to $7.25 Million

Investment firm Candriam S.C.A. has significantly reduced its holdings in Ormat Technologies, Inc. (NYSE: ORA) by 42.6% during the second quarter of 2023, according to a report from Holdings Channel. Following the sale of 64,272 shares, Candriam now owns 86,573 shares valued at approximately $7.25 million.

This adjustment in Candriam’s position reflects a broader trend among institutional investors. PNC Financial Services Group Inc. increased its stake in Ormat Technologies by 9.8%, acquiring an additional 144 shares to reach a total of 1,609 shares, valued at around $135,000. Similarly, UMB Bank n.a. raised its holdings by 20.3%, resulting in ownership of 1,059 shares worth $89,000.

In addition, Envestnet Asset Management Inc. boosted its stake by 0.8%, now owning 25,166 shares valued at about $2.1 million. The Louisiana State Employees Retirement System and Mackenzie Financial Corp also reported increases in their positions, reflecting a generally positive sentiment among shareholders. Currently, institutional investors and hedge funds control approximately 95.49% of Ormat Technologies’ stock.

Stock Performance and Market Insights

On November 1, 2023, Ormat Technologies opened at $108.54. The company has experienced fluctuations over the past year, with a low of $61.58 and a high of $115.72. Financial metrics reveal a market capitalization of $6.60 billion, a price-to-earnings (P/E) ratio of 50.49, and a beta of 0.77. The firm’s 50-day and 200-day simple moving averages are $102.48 and $89.92, respectively.

Ormat Technologies also declared a quarterly dividend of $0.12 per share, set to be paid on December 1, 2023. This dividend, which represents an annualized total of $0.48 and a yield of 0.4%, is payable to investors on record as of November 17. The company’s current dividend payout ratio stands at 22.02%.

Insider Trading and Analyst Ratings

Recent insider activity at Ormat Technologies has drawn attention, particularly transactions involving senior executives. CEO Doron Blachar sold 14,994 shares on September 29 for approximately $1.42 million. This sale reduced his ownership by 29.74%, leaving him with 35,419 shares valued at around $3.35 million. CFO Assi Ginzburg also sold 20,000 shares on November 7, realizing about $2.25 million and decreasing his ownership by 81.69%.

Investment analysts remain optimistic about Ormat Technologies, with various ratings reflecting a consensus of moderate buy. Robert W. Baird upgraded the stock to an “outperform” rating with a price target of $103.00, while UBS Group raised its target from $105.00 to $135.00. Notably, one analyst rates the stock as a Strong Buy, seven have a Buy rating, and four analysts suggest holding the stock.

As Ormat Technologies continues to navigate the evolving energy market, its strategic position and the interest of institutional investors will be critical to its future performance. The company’s focus on geothermal and recovered energy power generation remains a core aspect of its business model, contributing to its presence in multiple international markets.