Kalkine : FTSE 100 Utilities-Greencoat UK Wind Rebounds Above 200-Day Average

June 12, 2025 04:02 AM BST | By Team Kalkine Media
 Kalkine : FTSE 100 Utilities-Greencoat UK Wind Rebounds Above 200-Day Average
Image source: Shutterstock

Highlights

  • Greencoat UK Wind (LON:UKW) traded below its 200-day moving average before recovering above that level during the same session.
  • The company operates within the utilities sector, focusing on wind energy infrastructure through onshore and offshore assets.
  • The stock demonstrated movement above its recent average pricing levels, accompanied by substantial trading volume.

Greencoat UK Wind (LON:UKW) operates in the utilities sector, specifically within the renewables infrastructure space, with a focus on wind energy projects. This segment aligns with other companies across the FTSE All-Share and FTSE 350 indexes, where green infrastructure continues to be a key component. Greencoat UK Wind maintains ownership in both onshore and offshore wind farms with substantial energy capacity.

Stock Movement and Technical Indicators

During the latest session, the stock moved below its long-term average pricing level, specifically falling under the 200-day moving average before closing higher by the end of the trading day. The 200-day average stood at GBX 116.82, while the intraday low touched GBX 116.30. The final trade price for the day reached GBX 118.80. The share volume recorded for the day was significantly active, marking a total exceeding four million trades.

Technical indicators show the company’s 50-day moving average remains lower than the 200-day figure, suggesting recent pricing trends have hovered below the longer-term average. These figures reflect movement rather than signaling directional momentum.

Liquidity and Financial Metrics

Greencoat UK Wind holds a relatively high quick ratio, highlighting significant access to liquid assets relative to immediate liabilities. In contrast, the current ratio appears considerably lower, indicative of a unique capital structure in place. The company's debt-to-equity ratio shows a degree of leverage consistent with infrastructure-oriented firms, where capital-intensive projects are common.

Market capitalisation remains within the multi-billion pound range, situating the stock as one of the larger constituents within the renewables sub-sector of utilities. The stock’s price-to-earnings ratio falls within a range often associated with yield-generating entities, while its beta remains low, reflecting modest share price volatility in relation to the broader market.

Sector Specialisation and Investment Focus

Greencoat UK Wind focuses on renewable infrastructure, particularly wind generation. Its asset portfolio includes both onshore and offshore wind farms, with each project exceeding a minimum energy output threshold. In its offshore wind investments, the company typically secures stakes where the original utility operator retains an equity share for a set period following acquisition.

The fund follows a framework where it acquires a proportion of the asset’s Gross Asset Value, particularly with offshore wind assets. This strategic structure allows for capital deployment while retaining operational continuity with existing utility operators during initial project phases.

FTSE 100 and Broader Index Context

While Greencoat UK Wind is listed on the London Stock Exchange and aligned with the wider FTSE indices, it does not form part of the FTSE 100. However, developments in large-cap renewables and energy infrastructure companies often influence broader market perceptions within that benchmark. Movements in individual stocks such as Greencoat UK Wind contribute to overall sector sentiment and reflect ongoing market engagement with energy transition themes.

Project Characteristics and Energy Output Standards

Each wind generation project within the company’s asset base must exceed a minimum energy production benchmark to qualify for acquisition. This requirement helps maintain consistency across the portfolio and ensures operational scale. Wind farms, both onshore and offshore, form the basis of the fund’s revenue generation model, often linked to long-term supply agreements or power purchasing structures.

The firm’s approach reflects an emphasis on regulated infrastructure with ongoing asset performance oversight. Its participation in projects often coincides with co-ownership models, which allow for collaborative operation during the initial project phases.

Greencoat UK Wind continues to operate within a growing segment of the utilities market, with a focus on stable income generation through renewables infrastructure. The recent share price movement below and subsequent recovery above its long-term average reflects general investor engagement in the sector during ongoing market adjustments.


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