This Utility Stock Is Up 22% in One Year: What a Fund's $7.6 Million Position Says About NWE’s Outlook
Key Points
New York City-based Kintayl Capital added 129,994 shares of NorthWester Energy Group for an estimated $7.6 million in the third quarter.
The position represents about 5% of reportable assets under management at quarter-end.
Though relatively substantial, the new stake ranks outside Kintayl Capital's top five fund holdings.
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On November 14, New York City-based Kintayl Capital disclosed a new position in NorthWestern Energy Group (NASDAQ:NWE), acquiring 129,994 shares valued at approximately $7.6 million.
What Happened
Kintayl Capital LP reported a new equity stake in NorthWestern Energy Group (NASDAQ:NWE) in its latest quarterly report to the U.S. Securities and Exchange Commission (SEC filing) dated November 14. The fund disclosed ownership of 129,994 shares valued at $7.6 million as of September 30. This new position represented 4.7% of the fund’s $162.2 million in reportable U.S. equity assets.
What Else to Know
Top five holdings after the filing:
- NYSE: SAND: $11.6 million (8% of AUM)
- NASDAQ: LBRDK: $11.5 million (7.9% of AUM)
- NYSE: NSC: $11.4 million (7.8% of AUM)
- NYSE: IPG: $10.3 million (7.1% of AUM)
- NASDAQ: CORZ: $10.2 million (7% of AUM)
As of Thursday's market close, NorthWestern Energy Group shares were priced at $65.67, up 22% over the past year and outperforming the S&P 500, which is up nearly 13% in the same period.
Company Overview
| Metric | Value |
|---|---|
| Price (as of Thursday) | $65.67 |
| Market capitalization | $4 billion |
| Revenue (TTM) | $1.6 billion |
| Net income (TTM) | $217 million |
Company Snapshot
- NorthWestern Energy provides electricity and natural gas services, including generation, transmission, and distribution, across Montana, South Dakota, Nebraska, and Yellowstone National Park.
- The company operates as a regulated utility, generating revenue primarily through regulated rates for delivering electricity and natural gas to customers.
- It serves hundreds of thousands of customers in Montana, South Dakota, Nebraska, and Yellowstone National Park, including residential, commercial, and industrial customers.
NorthWestern Energy Group is a regulated utility with a diversified portfolio in electricity and natural gas, operating extensive infrastructure across the Northern Plains. The company leverages its regional scale and regulatory stability to deliver essential energy services to a broad customer base.
Foolish Take
A new utility position can signal a preference for steadier cash flow at a time when broader markets remain choppy—and Kintayl Capital’s move into NorthWestern Energy fits that pattern. The firm typically balances cyclical exposures with durable, cash-generating operators, and adding a regulated utility with improving fundamentals provides ballast alongside higher-volatility holdings like Core Scientific. The timing also aligns with NorthWestern’s stronger stock performance this year and a constructive regulatory and growth outlook.
NorthWestern delivered solid third-quarter results, including $0.62 in GAAP EPS and $0.79 in adjusted EPS (compared to $0.65 last year), with utility margin up double digits year over year. Management reaffirmed 2025 earnings guidance of $3.53 to $3.65 per share, a 4% to 6% long-term EPS growth target, and its $2.7 billion capital investment plan supporting future rate-base expansion. The company also declared a $0.66 quarterly dividend, underscoring the stability investors typically seek in the space. NorthWestern is simultaneously navigating major strategic developments—including the pending all-stock merger with Black Hills Corporation, detailed in the company’s Q3 release—which could ultimately broaden its footprint and scale. The transaction is expected to close next year.
For long-term investors evaluating this move, the takeaway is straightforward: Utilities rarely offer explosive upside, but NorthWestern’s combination of regulatory visibility, disciplined investment, and a strengthening balance sheet presents a steady counterweight to more volatile names in Kintayl’s portfolio.
Glossary
Initiated a new position: When an investor buys shares of a company for the first time.
Equity stake: Ownership interest in a company, typically represented by shares of stock.
13F assets under management: The total value of U.S. equity securities reported by an institutional investment manager in SEC Form 13F filings.
Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.
Dividend yield: Annual dividend payments divided by the share price, shown as a percentage.
Regulated utility: A company whose prices and operations are overseen by government agencies to protect consumers.
Generation, transmission, and distribution: The three main stages of delivering electricity: producing, transporting, and delivering it to customers.
Fund holdings: The individual securities or assets owned by an investment fund.
Outperforming the S&P 500: Achieving a higher return than the S&P 500 index over a specified period.
Annualized: A figure (such as yield or return) converted to a yearly rate based on a shorter time period.
Market close: The end of the regular trading session for a stock exchange on a given day.
Infrastructure: The physical systems and facilities needed to deliver services, such as power lines and pipelines for utilities.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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