The AES Corp. (AES) Stock Rating Lowered by Zacks Investment Research
The AES Corp. (NYSE:AES) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Thursday.
According to Zacks, “AES Corp. continues to face unfavorable economic conditions at its Brazilian Strategic Business Unit (SBU). Apart from that stringent environmental regulations as well as political risks continue to pose challenges for the company. Moreover, the company’s focus on long-term supply contracts exposes it to commodity price risks. Also, its transmission and distribution businesses face several operational risks including breakdown, failure or damage of equipment or processes, accidents and labor disputes. On a brighter note, AES Corp. continues to streamline its portfolio through asset divestments and by exiting markets and businesses where it does not have or cannot develop a competitive advantage. Further, its efforts to expand the generation business and renewable assets could drive growth going forward.”
A number of other research analysts have also recently weighed in on the stock. JPMorgan Chase & Co. restated a “buy” rating on shares of The AES Corp. in a report on Thursday, June 16th. TheStreet cut shares of The AES Corp. from a “buy” rating to a “hold” rating in a report on Friday, August 5th. Finally, Barclays PLC restated an “overweight” rating and issued a $14.00 price objective on shares of The AES Corp. in a report on Thursday, July 7th. One analyst has rated the stock with a sell rating, three have issued a hold rating and three have assigned a buy rating to the company. The AES Corp. currently has an average rating of “Hold” and an average target price of $12.75.
Shares of The AES Corp. (NYSE:AES) traded up 1.157% on Thursday, reaching $11.805. 2,645,402 shares of the company’s stock were exchanged. The firm has a 50 day moving average of $12.42 and a 200 day moving average of $11.85. The firm’s market capitalization is $7.78 billion. The AES Corp. has a one year low of $8.22 and a one year high of $13.32.
The AES Corp. (NYSE:AES) last announced its quarterly earnings results on Friday, August 5th. The company reported $0.17 earnings per share for the quarter, beating analysts’ consensus estimates of $0.16 by $0.01. The AES Corp. had a negative net margin of 1.89% and a positive return on equity of 13.56%. The business earned $3.23 billion during the quarter, compared to analysts’ expectations of $3.71 billion. During the same period last year, the business earned $0.25 earnings per share. The business’s revenue for the quarter was down 11.7% on a year-over-year basis. On average, equities research analysts predict that The AES Corp. will post $0.99 EPS for the current year.
Hedge funds and other institutional investors have recently modified their holdings of the company. Nisa Investment Advisors LLC increased its position in shares of The AES Corp. by 33.7% in the third quarter. Nisa Investment Advisors LLC now owns 846,592 shares of the company’s stock worth $10,879,000 after buying an additional 213,177 shares in the last quarter. BNP Paribas Arbitrage SA increased its position in shares of The AES Corp. by 42.6% in the third quarter. BNP Paribas Arbitrage SA now owns 1,019,624 shares of the company’s stock worth $13,102,000 after buying an additional 304,825 shares in the last quarter. Public Employees Retirement System of Ohio increased its position in shares of The AES Corp. by 2.0% in the second quarter. Public Employees Retirement System of Ohio now owns 267,663 shares of the company’s stock worth $3,340,000 after buying an additional 5,317 shares in the last quarter. Personal Capital Advisors Corp increased its position in shares of The AES Corp. by 11.4% in the second quarter. Personal Capital Advisors Corp now owns 1,644,686 shares of the company’s stock worth $20,526,000 after buying an additional 167,691 shares in the last quarter. Finally, Sterling Capital Management LLC increased its position in shares of The AES Corp. by 2.3% in the second quarter. Sterling Capital Management LLC now owns 42,898 shares of the company’s stock worth $535,000 after buying an additional 955 shares in the last quarter. Institutional investors own 94.54% of the company’s stock.
The AES Corp. Company Profile
The AES Corporation is a holding company. The Company, through its subsidiaries and affiliates, operates a diversified portfolio of electricity generation and distribution businesses. The Company is organized into six strategic business units (SBUs): the United States; Andes; Brazil; Mexico, Central America and Caribbean (MCAC); Europe, and Asia.
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