Sempra (SRE)

In the past six months, Sempra's stock price was impacted by an earnings and guidance revision, with shares experiencing a nearly 20% plunge after fourth-quarter results fell short of expectations and the company cut its 2025 EPS outlook. Several analysts downgraded their outlook for Sempra. Despite these challenges, Sempra declared a quarterly dividend of $0.645 per share. As of July 18, 2025, SRE's share price was $78.25, showing a 5.19% increase over the past 30 days but underperforming the S&P 500 Index by -11.75% over the past six months.

Demand for Sempra's products and services exhibits seasonality, with natural gas demand fluctuating due to seasonal factors and increasing to fill the gap when renewable energy sources decrease. There is a rising demand for electricity, driven by population growth, industrial expansion, and increased electrification, particularly in regions like Texas. Sempra's systematic investments are aimed at meeting this rising demand.

Sempra is a North American energy infrastructure company operating in the Utilities sector, focusing on investing in, developing, and operating energy infrastructure, and providing electric and natural gas services. Its major products and services include the generation, transmission, and distribution of electricity, as well as the storage, transportation, and distribution of natural gas. The company also has interests in renewable energy generation projects, LNG export facilities, and net-zero solutions. Key subsidiaries include San Diego Gas & Electric (SDG&E), Southern California Gas Company (SoCalGas), Oncor Electric Delivery Company, and Sempra Infrastructure.

Sempra's geographic footprint spans across North America, delivering energy to nearly 40 million consumers. Its operations are strategically positioned in key markets within the United States, including California, Texas, and Louisiana. Additionally, Sempra has a significant presence in Mexico through Sempra Infrastructure. The company's LNG operations also connect it to global energy markets.

Sempra has maintained a strong brand reputation, being recognized as one of the World's Most Admired Companies by Fortune Magazine for the 14th consecutive year and one of America's Most Responsible Companies by Newsweek for the sixth consecutive year. The company was also included in the Dow Jones Sustainability Index North America for the 13th consecutive year and made The Wall Street Journal and Drucker Institute's annual 250 Best Managed Companies list for 2023. However, a securities investigation initiated in March 2025, following a revenue shortfall, concerns potential violations of federal securities laws and has raised concerns among investors.

Sempra's ownership is predominantly institutional, with approximately 86.22% to 89.87% of the company's stock held by institutional shareholders. Vanguard Group Inc. is the largest individual Sempra shareholder. Individual investors hold a smaller portion, around 12% to 13.02% of the company. Insider ownership is relatively low, and there has been more insider selling than buying over the past year.