Key Stats for Dominion Energy Stock
- Past-Week Performance: 5%
- 52-Week Range: $48 to $68
- Valuation Model Target Price: $77
- Implied Upside: 17%
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What Happened?
Dominion Energy stock rose about 5% this week, finishing near $66 per share as investors reacted to offshore wind project updates and new institutional positioning disclosed in recent filings. Shares now trade near the upper end of their $48 to $68 52 week range, reflecting steady buying interest.
The stock moved higher after Dominion confirmed that work had resumed on its Coastal Virginia Offshore Wind project following a federal ruling, easing concerns about regulatory delays.
The company also disclosed that total project costs increased to about $11.5 billion from $11.2 billion due to a temporary U.S. government suspension and tariff-related expenses.
Completion is now expected in early 2027 instead of the end of 2026, and Dominion has already invested nearly $9 billion in the project, which is expected to power more than 600,000 homes.
Institutional filings showed active capital flows. Vanguard increased its stake by 363,610 shares to 106,158,920 shares, representing about 12.43% of the company valued at roughly $6.49 billion.
State of New Jersey Common Pension Fund D raised its position by 7.6%, and Stratos Wealth Partners boosted its stake by 53.1%.
Meanwhile, JPMorgan reduced its holdings by 6.2%, PNC trimmed 4.2%, and Diamond Hill Capital cut 12%, indicating portfolio rebalancing rather than broad selling pressure.
The combination of resumed offshore wind development, improved execution visibility, and continued large institutional ownership helped support shares this week.
Investors appear to be focusing on Dominion’s regulated earnings base and long-term infrastructure expansion rather than short-term project cost increases.
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Is Dominion Energy Undervalued?
Under valuation assumptions, the stock is modeled using:
- Revenue Growth (CAGR): 7.7%
- Operating Margins: 33.3%
- Exit P/E Multiple: 18.0x
Revenue growth is projected to be supported by regulated rate base expansion, including transmission upgrades, grid modernization, and continued electric and gas infrastructure investment across Dominion’s core territories.
Analyst estimates show revenue rising from about $15.97 billion in 2025 to roughly $20.44 billion by 2029, reflecting steady forward growth tied to capital deployment rather than cyclical demand.
The stock faced pressure in prior periods due to balance sheet concerns, asset sales, rising interest rates, and uncertainty surrounding the Coastal Virginia Offshore Wind project.
Regulatory suspension and cost increases weighed on sentiment and compressed valuation multiples despite Dominion’s regulated earnings foundation.
Earnings durability now depends on constructive regulatory outcomes in Virginia and other jurisdictions, where approved capital spending translates into allowed returns on equity and predictable cash flow.
Bringing the $11.5 billion offshore wind project online in early 2027 would expand the regulated asset base and strengthen multi-year earnings visibility.
Electricity demand trends across the PJM region, including recent record winter load forecasts and transmission congestion, reinforce the long-term need for grid investment.
That structural demand backdrop supports continued infrastructure spending and rate base growth.
Based on these inputs, the model estimates a target price of $77 by the end of 2027, implying about 16.6% total upside from the current $65.65 share price.
At current levels, Dominion Energy appears undervalued if management delivers on regulated growth, cost recovery, and disciplined capital allocation over the next 12 months.
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