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How to buy National Grid (NGG) stock

Learn how to easily invest in National Grid stock.

National Grid plc
NYSE: NGG - USD
UTILITIES-DIVERSIFIED
$64.17
+$0.70 (+1.10%)

National Grid plc is an utilities-diversified business based in the US. National Grid shares (NGG) are listed on the NYSE and all prices are listed in US Dollars. National Grid employs 23,683 staff and has a trailing 12-month revenue of around 0.00.

How to buy shares in National Grid

  1. Compare share trading platforms.Use our comparison table to help you find a platform that fits you.
  2. Open your brokerage account. Complete an application with your details.
  3. Confirm your payment details. Fund your account.
  4. Research the stock. Find the stock by name or ticker symbol – NGG – and research it before deciding if it's a good investment for you.
  5. Purchase now or later. Buy your desired number of shares with a market order or use a limit order to delay your purchase until the stock reaches a desired price.
  6. Check in on your investment. Optimize your portfolio by tracking your stock.

National Grid stock price (NYSE: NGG)

Use our graph to track the performance of NGG stocks over time.

National Grid shares at a glance

Information last updated 2021-07-16.
Latest market close$66.87
52-week range$50.37 - $66.43
50-day moving average $65.23
200-day moving average $61.83
Wall St. target price$69.82
PE ratio 20.3807
Dividend yield $0.492 (0.76%)
Earnings per share (TTM) $3.21

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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

Is it a good time to buy National Grid stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

National Grid price performance over time

Historical closes compared with the close of $66.87 from 2021-05-28

1 week (2021-07-12) N/A
1 month (2021-06-23) 3.32%
3 months (2021-04-19) N/A
6 months (2021-01-19) N/A
1 year (2020-07-19) N/A
2 years (2019-07-19) N/A
3 years (2018-07-19) N/A
5 years (2016-07-19) N/A

Is National Grid under- or over-valued?

Valuing National Grid stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of National Grid's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

National Grid's P/E ratio

National Grid's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 20x. In other words, National Grid shares trade at around 20x recent earnings.

That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

National Grid's PEG ratio

National Grid's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.9876. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into National Grid's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

National Grid's EBITDA

National Grid's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $4.4 billion.

The EBITDA is a measure of a National Grid's overall financial performance and is widely used to measure a its profitability.

National Grid financials

Revenue TTM $14.8 billion
Operating margin TTM 20.81%
Gross profit TTM $14.8 billion
Return on assets TTM 2.85%
Return on equity TTM 8.28%
Profit margin 11.1%
Book value $27.95
Market capitalisation $46.4 billion

TTM: trailing 12 months

Shorting National Grid shares

There are currently 331,689 National Grid shares held short by investors – that's known as National Grid's "short interest". This figure is 33.9% down from 501,638 last month.

There are a few different ways that this level of interest in shorting National Grid shares can be evaluated.

National Grid's "short interest ratio" (SIR)

National Grid's "short interest ratio" (SIR) is the quantity of National Grid shares currently shorted divided by the average quantity of National Grid shares traded daily (recently around 318931.73076923). National Grid's SIR currently stands at 1.04. In other words for every 100,000 National Grid shares traded daily on the market, roughly 1040 shares are currently held short.

However National Grid's short interest can also be evaluated against the total number of National Grid shares, or, against the total number of tradable National Grid shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case National Grid's short interest could be expressed as 0% of the outstanding shares (for every 100,000 National Grid shares in existence, roughly 0 shares are currently held short) or 0.0005% of the tradable shares (for every 100,000 tradable National Grid shares, roughly 1 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against National Grid.

Find out more about how you can short National Grid stock.

National Grid share dividends

7%

Dividend payout ratio: 6.67% of net profits

Recently National Grid has paid out, on average, around 6.67% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 5.25% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), National Grid shareholders could enjoy a 5.25% return on their shares, in the form of dividend payments. In National Grid's case, that would currently equate to about $0.492 per share.

While National Grid's payout ratio might seem low, this can signify that National Grid is investing more in its future growth.

National Grid's most recent dividend payout was on 17 August 2021. The latest dividend was paid out to all shareholders who bought their shares by 2 June 2021 (the "ex-dividend date").

Have National Grid's shares ever split?

National Grid's shares were split on a 916:1000 basis on 21 May 2017. So if you had owned 1000 shares the day before before the split, the next day you'd have owned 916 shares. This wouldn't directly have changed the overall worth of your National Grid shares – just the quantity. However, indirectly, the new 9.2% higher share price could have impacted the market appetite for National Grid shares which in turn could have impacted National Grid's share price.

National Grid share price volatility

Over the last 12 months, National Grid's shares have ranged in value from as little as $50.3664 up to $66.43. A popular way to gauge a stock's volatility is its "beta".

Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while National Grid's is 0.0751. This would suggest that National Grid's shares are less volatile than average (for this exchange).

National Grid overview

National Grid plc transmits and distributes electricity and natural gas. It operates through UK Electricity Transmission, UK Gas Transmission, US Regulated, and National Grid Ventures (NGV) and Other segments. The UK Electricity Transmission segment owns and operates electricity transmission networks, which comprise approximately 7,236 kilometers of overhead lines. The UK Gas Transmission segment owns and operates gas transmission systems, as well as third-party independent systems and liquefied natural gas (LNG) storage facilities. The US Regulated segments owns and operates transmission facilities across upstate New York, Massachusetts, New Hampshire, Rhode Island, and Vermont; and electricity distribution networks in upstate New York, Massachusetts, and Rhode Island. Its assets comprise 14,439 kilometers of overhead lines; an electricity distribution network of approximately 117,498 circuit miles; and a network of approximately 57,551 kilometers of gas pipeline. The NGV and Other segment engages in the energy metering business; transporting renewable energy long distances through its electricity interconnectors; and storing LNG, as well as commercial property and insurance activities in the United Kingdom.

Frequently asked questions

What percentage of National Grid is owned by insiders or institutions?
Currently 0.012% of National Grid shares are held by insiders and 4.107% by institutions.
How many people work for National Grid?
Latest data suggests 23,683 work at National Grid.
When does the fiscal year end for National Grid?
National Grid's fiscal year ends in March.
Where is National Grid based?
National Grid's address is: 1-3 Strand, London, United Kingdom, WC2N 5EH
What is National Grid's ISIN number?
National Grid's international securities identification number is: US6362744095
What is National Grid's CUSIP number?
National Grid's Committee on Uniform Securities Identification Procedures number is: 636274102

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