Shares of SSE PLC retreated slightly in Thursday trading, easing 0.2% to 2,631 pence by 0909 GMT after touching a fresh 52-week high of 2,643 pence earlier in the session. The pullback follows a significant rally that saw the stock gain more than 5% over the prior two trading days, closing at a record high on Wednesday.
Major Stakeholder Disclosure
The movement coincides with a regulatory filing revealing that Capital Group Companies, Inc. has increased its voting rights position in the energy company to 5.071021%, equivalent to approximately 61.47 million shares. The threshold was crossed on February 9. Such filings often signal sustained institutional confidence, particularly when a stock is trading near historic highs.
In a separate announcement, SSE noted minor share purchases by several top executives, including Chief Executive Martin Pibworth, under its employee Share Incentive Plan on February 6. The buys were executed at a price around 25.11 pounds per share.
Earnings Outlook and Investment Drive
Last week, SSE provided guidance for the fiscal year ending March 2026, forecasting adjusted earnings per share in a range of 144 to 152 pence. This represents a decline from the 160.9 pence reported for the prior year, with the company attributing the expected decrease to heightened investment costs in its networks business.
The utility reported on February 4 that its networks investment surged 64% year-over-year for the first nine months of the fiscal year, while renewables output increased 7%. Despite this aggressive capital expenditure, management cautioned that full-year performance remains subject to variability in weather conditions and market prices.
Investor appetite for UK utilities has been bolstered by the sector's exposure to regulated infrastructure spending, which offers inflation-linked returns. The current lower yield environment has also enhanced the appeal of dividend-paying stocks like SSE.
Market attention now turns to key forthcoming dates. SSE is scheduled to enter a closed period on April 2, with preliminary results for the full year set for release on May 28. These updates will provide crucial details on financial performance, cash flow, and progress against the company's multi-billion pound investment plan.