NiSource Stock Gets Boost: Why Institutions Are Taking Notice of NI

The Bullish Case for NiSource Strengthens

Major investment banks continue to show confidence in NiSource (NYSE:NI). UBS reaffirmed its positive stance on December 17, 2025, signaling sustained institutional interest in the utility company. The confluence of analyst upgrades and institutional buying paints an optimistic picture for the stock.

What’s Driving the Upside Potential?

Wall Street’s price forecasts for NiSource reveal considerable room for appreciation. As of early December 2025, analysts have set an average 12-month target of $47.95 per share—representing a potential 16.26% gain from the recent $41.24 closing price. Estimates span from a conservative $44.44 to an ambitious $52.50, reflecting the range of opinion among market participants. Beyond valuation, revenue projections stand at 6,025 million annually, though growth expectations moderate slightly with a projected 4.77% decline. Non-GAAP earnings per share are estimated at 1.79, providing a baseline for fundamental analysis.

Institutional Positioning Tells a Story

The institutional landscape surrounding NiSource reveals nuanced positioning. Currently, 1,531 funds and institutions maintain stakes in the company—a slight decrease of 27 positions over the past quarter. However, portfolio weighting among these fund holders has increased to 0.28% on average, up 5.19%, suggesting a shift toward larger allocations among remaining players. Total institutional share count declined 2.55% to 552.4 million shares, indicating selective profit-taking despite maintained interest.

Who’s Buying? Key Institutional Moves

T. Rowe Price Investment Management stands as a significant stakeholder with 43.3 million shares (9.07% ownership), having expanded its position by 5.89% quarter-over-quarter. More notably, the firm’s portfolio allocation jumped 10.41%, demonstrating renewed confidence. The T. Rowe Price Capital Appreciation Fund showed even more aggressive positioning, nearly doubling its stake from 16.1 million to 26 million shares—a 38.14% increase that signaled a 53.54% boost in relative portfolio weight.

Index fund exposure remains substantial. Vanguard Total Stock Market Index Fund holds 15.2 million shares (3.18%), with a modest 1.99% increase, though portfolio weighting edged down 8.40%. Similarly, Vanguard’s 500 Index Fund maintains 13.4 million shares (2.80%), representing a 2.26% increase that nonetheless saw an 8.54% decrease in portfolio focus.

Geode Capital Management’s 12.2 million-share position (2.56% ownership) reflects a slight quarterly decline of 0.24%, coupled with a notable 48.23% reduction in portfolio emphasis—potentially indicating rebalancing rather than conviction loss.

Market Sentiment Leans Bullish

Options market data supports the constructive view. NiSource’s put-to-call ratio of 0.38 signals bullish sentiment, with more call buyers than put buyers anticipating upside moves. This technical indicator aligns with the fundamental reassessments driving institutional activity.

The Bottom Line

NiSource maintains institutional credibility through a combination of analyst support, selective fund buying, and favorable options positioning. While total institutional share counts declined marginally, the quality of positioning—particularly aggressive moves by active managers like T. Rowe Price—suggests conviction among sophisticated investors in near-term catalysts and valuation recovery for the NI utility stock.