Eversource Energy (ES) Plunges 9.65% Amid Regulatory Rejection of $2.4B Aquarion Water Sale

Summary
• Connecticut’s Public Utilities Regulatory Authority (PURA) rejected Eversource’s $2.4B Aquarion Water sale, triggering a 9.65% intraday drop to $67.345.
• The stock traded between $67.24 and $71.54, with a 52-week high of $75.25 and a 52-week low of $52.28.
• Eversource’s debt-to-equity ratio of 1.86 and Altman Z-Score of 0.79 highlight financial vulnerabilities amid regulatory setbacks.

Today’s sharp decline in Eversource Energy (ES) reflects a regulatory blow to its strategic divestiture plans. The rejection of the Aquarion Water sale by Connecticut regulators has sent shares tumbling, testing key support levels and raising questions about the company’s ability to refinance debt and fund infrastructure projects.

Regulatory Rejection Sparks Sharp Decline in Eversource Shares
Eversource’s 9.65% intraday drop was directly triggered by PURA’s unanimous rejection of its $2.4B Aquarion Water sale. The authority cited governance conflicts in the proposed Aquarion Water Authority (AWA) structure, which would have shared board members with the existing South Central Connecticut Regional Water Authority. This overlapping governance would have created fiduciary conflicts and uneven voting rights for 30 of AWA’s 59 municipalities. The deal’s rejection eliminates a key source of liquidity for Eversource, which had planned to use proceeds for debt reduction and reinvestment in its core utilities. With a debt-to-equity ratio of 1.86 and an Altman Z-Score of 0.79, the company’s financial flexibility is already constrained, amplifying market concerns.

Options and ETF Strategies Amid Volatility
• RSI: 54.43 (neutral trend)
• MACD: 0.63 (bullish), Signal Line: 0.73 (bearish), Histogram: -0.09 (divergence)
• Bollinger Bands: Upper $75.29, Middle $73.67, Lower $72.05
• 200D MA: $64.78 (below current price)
• Support/Resistance: 30D $73.76–73.85, 200D $65.39–65.80

Technical indicators suggest a volatile setup for Eversource. The RSI hovering near 54.43 indicates a neutral trend, while the MACD divergence signals potential bearish momentum. Key support levels at $65.39–65.80 (200D MA) and $67.24 (intraday low) are critical for short-term stability. The stock’s 52-week high of $75.25 remains a distant target, but the rejection of the Aquarion sale has shifted focus to downside risks.

Top Options Picks:
• ES20251219P65 (Put Option)
- Code: ES20251219P65
- Strike Price: $65
- Expiration: 2025-12-19
- Implied Volatility: 26.66% (moderate)
- Leverage Ratio: 64.23% (high)
- Delta: -0.301866 (moderate bearish exposure)
- Theta: -0.026157 (time decay)
- Gamma: 0.066418 (price sensitivity)
- Turnover: 3,451 (high liquidity)
- Payoff (5% downside): $1.02 per share (65 - 63.98)
- This put option offers high leverage and moderate delta, ideal for capitalizing on a potential 5% drop in Eversource’s stock price. The moderate implied volatility and high turnover ensure liquidity for entry and exit.

• ES20251219P70 (Put Option)
- Code: ES20251219P70
- Strike Price: $70
- Expiration: 2025-12-19
- Implied Volatility: 26.29% (moderate)
- Leverage Ratio: 18.73% (low)
- Delta: -0.669567 (high bearish exposure)
- Theta: -0.021104 (time decay)
- Gamma: 0.069702 (price sensitivity)
- Turnover: 2,557 (high liquidity)
- Payoff (5% downside): $6.02 per share (70 - 63.98)
- While the leverage ratio is lower, the high delta makes this put suitable for a larger downside move. The moderate IV and high turnover support its viability in a volatile environment.

Trading Setup: Aggressive bearish traders may consider ES20251219P65 for a 5% downside scenario, while ES20251219P70 offers higher payoff potential for deeper declines. Watch for a breakdown below $65.39 (200D MA) to confirm bearish momentum.

Backtest Eversource Stock Performance
Below is the interactive report for the “10 % Plunge Rebound” strategy on Eversource Energy (ticker ES) covering 1 Jan 2022 – 19 Nov 2025. Key modelling note: because true intraday data are not available through the current data interface, the –10 % “plunge” trigger is approximated with a daily close-to-close move of –10 % or worse. Risk limits were auto-filled to reflect a realistic swing-style approach (take-profit 20 %, stop-loss 8 %, 60-day maximum holding period); these can of course be refined.Please explore the module to view detailed equity curves, drawdown charts, and performance statistics.

Act Now: Eversource Faces Regulatory Uncertainty and Volatile Options Play
Eversource’s sharp decline underscores regulatory and financial risks that could persist in the near term. The rejection of the Aquarion sale removes a key liquidity source, and the company’s high debt load (1.86 debt-to-equity) limits its ability to refinance. Investors should monitor the 200D MA at $65.39–65.80 as a critical support zone. Meanwhile, the sector leader NextEra Energy (NEE) remains stable with a -0.14% intraday move, highlighting Eversource’s unique vulnerability. For traders, the ES20251219P65 and ES20251219P70 options offer strategic bearish exposure. Watch for regulatory updates and key support levels to dictate next steps.