SR Should I Buy
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$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
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BUY now. SR is in a clear uptrend (bullish moving-average stack and positive MACD), options positioning is strongly bullish (very low put/call ratios), and hedge fund buying has accelerated. With price sitting just below near-term resistance (~85.01/85.74), an impatient buyer is best served entering now for a potential near-term breakout into the earnings date (2026-02-03 pre-market).
Trend is bullish. The moving averages are stacked positively (SMA_5 > SMA_20 > SMA_200), signaling sustained upward momentum. MACD histogram is positive (0.253) but contracting, which suggests the uptrend is intact but momentum is cooling slightly rather than reversing. RSI(6) at ~58.8 is neutral-to-slightly-bullish (not overbought). Key levels: pivot 83.84 is the immediate line to hold; support S1 82.67 then 81.94. Resistance is close at R1 85.01 and R2 85.74—clearing these would confirm continuation. With price ~84.49 post-market, SR is positioned near a breakout zone rather than a breakdown zone.
Shareholder-friendly capital actions: redemption of the 5.90% Series A preferred (reduces higher-cost preferred layer) and continuation of dividend growth (23rd consecutive year of increases) support a steady utility-style bull case.
Event-driven setup: upcoming earnings (2026-02-03 pre-market) can be a near-term catalyst, especially with bullish technicals into the print.
Institutional flow: hedge funds are net buyers and buying amount rose ~279% QoQ, supporting demand.
Business plan tailwinds referenced by analysts: long-term EPS growth plan and the Tennessee acquisition/rate case pathway continue to be viewed constructively by multiple firms.
Near-term technical overhead: price is just below resistance (85.01/85.74), so upside may pause if the breakout fails.
Fundamentals still not fully clean: latest provided quarter shows improved results but still negative net income/EPS (loss), which can cap multiple expansion.
Margin pressure: gross margin declined ~5.73% YoY, a point to watch for regulated cost/recovery timing and operating efficiency.
No politician/congress flow support: no recent congress trading data and no notable insider accumulation trend in the past month.
Latest reported quarter provided: 2025/Q4. Revenue rose to $334.1M (+13.72% YoY), showing top-line growth. Profitability improved materially year over year but remains negative: net income was -$43.4M (improved ~47.12% YoY) and EPS was -0.73 (improved ~43.14% YoY). Gross margin fell to 53.94% (-5.73% YoY), indicating some margin compression despite revenue growth. Overall: growth is positive and losses are narrowing, but margin and still-negative earnings keep it from being a pure fundamentals-driven momentum story.
Recent analyst trend is modestly positive on price targets, but ratings are mixed. Stifel raised PT to $87 (Hold). Morgan Stanley raised PT to $93 (Overweight) and previously raised to $99 while keeping Equal Weight (mixed stance across updates). Mizuho raised PT to $96 (Outperform) and highlighted the earnings-path clarity tied to the Missouri rate case and Tennessee acquisition. Wall Street pros view: Pros—improving long-term earnings power, regulated utility stability, and identifiable catalysts (rate case/acquisition) with multiple PT increases. Cons—at least one major firm remains Hold, implying limited near-term upside vs peers/valuation, and the story relies on execution/regulatory timelines rather than explosive growth.
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