ETFs Turn Net Sellers of Xcel Energy (XEL) as Funds Shed $12.6 Million
Exchange-traded funds posted $12.6 million in net sales of Xcel Energy on Tuesday, ending two consecutive sessions of net buying. Heavy selling was led by the Utilities Select Sector SPDR Fund.
Exchange-traded funds recorded net selling of Xcel Energy Inc. shares on Tuesday, totaling $12.6 million. The outflow followed two consecutive days of inflows, which included net buying of $35.4 million on Nov. 9 and $19.7 million on Nov. 6. While 29 ETFs bought shares during Tuesday's session and only 11 sold, the sellers moved larger dollar volumes.
The bulk of the selling came from the Utilities Select Sector SPDR Fund (XLU), which offloaded 306,768 shares valued at $24.6 million. That transaction represented a 2.77% reduction in its position. Other sellers included IVV, which reduced holdings by 3,267 shares for $0.3 million, and IDU, which trimmed 2,154 shares for $0.2 million. Despite the single-day outflow, ETFs remained net buyers across three of the past five reported trading days.
The recent trading activity follows the utility holding company's third-quarter financial results. Xcel Energy delivered adjusted earnings per share of $1.52, beating the analyst consensus forecast of $1.39. Revenue expanded 6.6% year-over-year to $4.17 billion, though it missed consensus projections of $4.26 billion. The earnings growth was helped by the recovery of electric infrastructure investments, equity-method investment gains, and unusually warm weather.
Looking forward, company guidance targets 2027 earnings per share between $4.48 and $4.62, alongside approximately 5% weather-normalized retail electric sales growth. For the full year ending December 2026, Wall Street analysts project adjusted earnings per share of $4.14, representing an increase of nearly 9% over the prior year.
Analyst sentiment surrounding the regulated utility remains predominantly favorable. Barchart reports a consensus rating of Strong Buy from 19 covering analysts, composed of 16 Strong Buy, one Moderate Buy, and two Hold recommendations. MarketBeat tracks an average price target of $90.71, with research firms including Barclays lifting their target price to $94.00, while Wall Street Zen upgraded the stock from sell to hold.