Nisource Outlook - Mixed Signals and Waiting for Clarity

Market Snapshot

Nisource (NI) is currently in a state of technical neutrality, with mixed signals suggesting a wait-and-see approach for investors. Despite some bullish technical indicators, the overall trend remains uncertain, with the price recently falling by -2.98%.

News Highlights

• May 31, 2025 - Virtus Investment Partners Reports Preliminary AUMVirtus Investment Partners reported preliminary assets under management (AUM) of $167.6 billion as of May 31, 2025. The increase in AUM from April indicates growing confidence in the firm’s investment strategies.
• May 30, 2025 - HH Chemical Launches BIODEX®HH Chemical launched BIODEX®, the world's first fully integrated bio-based materials brand. The innovation is expected to address multi-industry challenges and may indirectly influence energy and materials sectors, including utility companies like Nisource.
• May 31, 2025 - Waco Tech Sector GrowthWaco’s tech sector saw a surge in May 2025, including $300 million in infrastructure upgrades and major job upskilling initiatives. While this development is more localized, it reflects a broader trend of innovation and infrastructure investment, which could support long-term growth in utility and energy sectors.

Analyst Views & Fundamentals

Currently, there is one analyst covering Nisource, with a recent neutral rating. The simple average rating is 3.00, while the performance-weighted rating is 3.30. These scores suggest a relatively neutral stance, which contrasts with the recent price fall of -2.98%. Analysts have historically shown strong performance, with a 100.00% win rate on previous predictions, though activity has been mild recently.

Key Fundamental Factors

• Revenue-to-Market Value Ratio (Revenue-MV): 0.01 - internal diagnostic score: 3.00.
• Price-to-Sales Ratio (PS): 10.44 - internal diagnostic score: 0.00.
• Gross Profit Margin (GPM): 79.59% - internal diagnostic score: 3.00.
• Price-to-Earnings Ratio (PE): 129.54 - internal diagnostic score: 3.00.
• Accounts Receivable Turnover Ratio: 3.90 - internal diagnostic score: 1.00.
• Gross Margin After Reserves (GMAR): 81.93% - internal diagnostic score: 3.00.
• Long-Term Debt to Working Capital Ratio (%): 7.08% - internal diagnostic score: 3.00.
• Cash and Unused Production Capacity (Cash-UP): -0.27 - internal diagnostic score: 0.00.
• Gross Profit on Assets (GPOA): 3.00% - internal diagnostic score: 1.00.
• Asset-to-Market Value Ratio (Asset-MV): 1.18 - internal diagnostic score: 3.00.

Money-Flow Trends

Big money is currently moving out of Nisource, with all block and institutional flows showing a negative trend. The overall inflow ratio is 0.48, with large and extra-large investors contributing to a negative pattern. Smaller investors are also withdrawing, though slightly less aggressively. This trend suggests caution among large stakeholders, possibly due to the mixed technical signals and price uncertainty.

Key Technical Signals

Nisource's technical indicators show a mixed pattern over the last five days, with 3 bullish and 2 bearish signals, and 1 neutral. Here are the key signals and their internal diagnostic scores:

• WR Oversold: internal diagnostic score: 8.35 – Suggests a strong potential for a price rebound from oversold conditions.
• RSI Oversold: internal diagnostic score: 8.17 – Indicates a possible short-term bounce after a significant dip.
• Long Lower Shadow: internal diagnostic score: 8.07 – A bullish candlestick pattern that signals a potential reversal.
• WR Overbought: internal diagnostic score: 2.88 – Cautionary sign of overbought conditions, which can lead to a pullback.
• Bearish Engulfing: internal diagnostic score: 2.90 – A bearish reversal pattern, suggesting caution for buyers.
• Dividend Payable Date: internal diagnostic score: 4.10 – A neutral event that historically has not strongly influenced price direction.

Recent Chart Activity

• 2025-08-22: WR Overbought
• 2025-08-26: Bearish Engulfing
• 2025-09-03: WR Oversold
• 2025-09-04: Long Lower Shadow, RSI Oversold
• 2025-08-20: WR Overbought, Dividend Payable Date

These recent patterns suggest volatility and uncertainty. The market is in a wait-and-see mode, with mixed bearish and bullish indicators balancing each other out.

Conclusion

Nisource is currently in a technical holding pattern, with mixed signals from both large and small investors. While some bullish indicators like RSI Oversold and Long Lower Shadow suggest short-term potential, bearish signals such as the Bearish Engulfing pattern caution against over-optimism. With an internal technical score of 5.75, the stock remains in a wait-and-see phase.

Actionable Takeaway: Consider holding off on new positions for now and watch for a clearer breakout—either upward or downward—before committing capital. Investors may also want to monitor the next set of analyst updates or potential earnings reports for a stronger direction signal.