5 Most Undervalued Utility Stocks to Buy According to Hedge Funds

2. Entergy Corporation (NYSE:ETR)

Latest P/E Ratio: 14.58

Number of Hedge Fund Holders: 33

New Orleans, Louisiana-based Entergy Corporation (NYSE:ETR) is a utility company that provides electricity and gas services to 3 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. It owns or operates more than 24,000 megawatts of generating capacity.

On October 30, Entergy Corporation (NYSE:ETR) announced an agreement to sell its gas distribution business to Bernhard Capital Partners for $484 million in cash. Proceeds from the transaction will be used to repay the Company’s debt and to support its capital needs in electric utility business.

A few days prior to this, the Board of Directors of Entergy Corporation (NYSE:ETR) had declared a quarterly dividend payment of $1.13 per share, $0.06 more than the previous amount. Its shares currently have a dividend yield of 4.28% based on the share price on November 22.

As of Q3 2023, 33 of the 910 hedge funds tracked by Insider Monkey were long Entergy Corporation (NYSE:ETR) and held shares worth $748 million. Israel Englander’s Millennium Management was the largest shareholder with ownership of 1.3 million shares valued at $119 million.