Spire Inc. (NYSE:SR), a gas utility, saw its shares slip on Wednesday. The move followed an agreement to sell its natural gas storage assets to I Squared Capital for $650 million.

The deal includes $600 million in cash at closing and a $50 million deferred payment expected in fiscal 2027. Proceeds will help fund Spire's acquisition of the Piedmont Natural Gas Tennessee business and complete its financing plan.

The transaction is expected to close in the second half of fiscal 2026, subject to customary conditions and regulatory approvals.

Strategic Shift

Spire said the divestiture will sharpen its focus on regulated natural gas utility operations, improve its risk profile, and support long-term growth.

I Squared plans to enhance operations and pursue expansion opportunities to meet growing demand for natural gas storage.

Spire Assets And Outlook

The assets include Spire Storage West in Wyoming, with up to 55 Bcf of working gas capacity, and Spire Storage Salt Plains in Oklahoma, with up to 17 Bcf capacity, serving markets across the western, midcontinent, and midwestern U.S.

Spire expects to update fiscal 2026 guidance during its second-quarter earnings call in May and reaffirmed fiscal 2027 adjusted EPS guidance of $5.40 to $5.60, with long-term EPS growth of 5% to 7%.

"This transaction represents another important step in sharpening our focus on our core regulated natural gas utility businesses," said CEO Scott Doyle.

Technical Analysis

Spire is trading near the upper end of its 52-week range, suggesting strong positioning relative to its historical performance.

The stock is 0.3% above its 20-day SMA, suggesting short-term bullish momentum. It is also 1.4% above its 50-day SMA, indicating continued strength in the intermediate term.

The RSI is at 54.24, indicating neutral conditions with the stock neither overbought nor oversold. This suggests balanced market sentiment at current levels.

The setup allows for potential movement in either direction, depending on future catalysts.

  • Key Resistance: $92.50 — A level where selling pressure may emerge.
  • Key Support: $89.00 — A critical level that could provide buying interest.

Earnings & Analyst Outlook

Spire is slated to provide its next financial update on May 6, 2026 (confirmed).

  • EPS Estimate: $3.75 (Up from $3.60)
  • Revenue Estimate: $1.10 billion (Up from $1.05 billion)
  • Valuation: P/E of 20.3x (Indicates fair valuation)

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $82.23. Recent analyst moves include:

  • Stifel: Hold (Raises Target to $87.00) (Jan. 28)
  • UBS: Buy (Raises Target to $100.00) (Dec. 17, 2025)
  • Morgan Stanley: Upgraded to Overweight (Lowers Target to $92.00) (Dec. 16, 2025)

SR Stock Price Activity: Spire shares were down 0.17% at $92.45 at the time of publication on Wednesday, according to Benzinga Pro data.

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