The AES Corporation (AES) Lifted to Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of The AES Corporation (NYSE:AES) from a hold rating to a buy rating in a research note released on Tuesday morning. The brokerage currently has $12.00 target price on the utilities provider’s stock.
According to Zacks, “.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. The company’s strategy of reducing complexity through withdrawal of operations in the risk markets is appreciable. Further, its efforts to expand the generation business and renewable assets could drive growth going forward. The company also holds a strong liquidity position, which allowed management to make a promise of 10% growth in dividend, every year. However, commodity price volatility, stringent environmental regulations and operational risks continue to pose challenges for the stock.”
A number of other research analysts have also recently weighed in on the stock. ValuEngine cut shares of The AES Corporation from a buy rating to a hold rating in a research note on Friday, September 1st. BidaskClub upgraded shares of The AES Corporation from a strong sell rating to a sell rating in a research note on Wednesday, August 23rd. Finally, Morgan Stanley restated an equal weight rating on shares of The AES Corporation in a research note on Monday, July 10th. Three analysts have rated the stock with a sell rating, five have given a hold rating and one has given a buy rating to the company. The stock currently has a consensus rating of Hold and an average price target of $11.75.
The AES Corporation (NYSE AES) opened at 11.21 on Tuesday. The AES Corporation has a 12-month low of $10.60 and a 12-month high of $13.32. The company’s market cap is $7.40 billion. The stock has a 50 day moving average of $11.18 and a 200 day moving average of $11.33.
The AES Corporation (NYSE:AES) last released its earnings results on Tuesday, August 8th. The utilities provider reported $0.25 earnings per share for the quarter, beating analysts’ consensus estimates of $0.21 by $0.04. The AES Corporation had a negative net margin of 5.30% and a positive return on equity of 15.86%. The company had revenue of $3.47 billion for the quarter, compared to analysts’ expectations of $2.97 billion. During the same quarter in the previous year, the company earned $0.17 EPS. The AES Corporation’s revenue for the quarter was up 7.5% on a year-over-year basis. Equities analysts expect that The AES Corporation will post $1.05 earnings per share for the current year.
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The business also recently declared a quarterly dividend, which was paid on Thursday, August 17th. Shareholders of record on Thursday, August 3rd were paid a $0.12 dividend. This represents a $0.48 annualized dividend and a yield of 4.28%. The ex-dividend date of this dividend was Tuesday, August 1st. The AES Corporation’s payout ratio is currently -42.10%.
Hedge funds have recently made changes to their positions in the business. Jane Street Group LLC purchased a new stake in The AES Corporation in the 1st quarter worth $117,000. Ffcm LLC lifted its stake in The AES Corporation by 171.8% in the 2nd quarter. Ffcm LLC now owns 10,495 shares of the utilities provider’s stock worth $116,000 after purchasing an additional 6,634 shares in the last quarter. IFP Advisors Inc lifted its stake in The AES Corporation by 94.0% in the 1st quarter. IFP Advisors Inc now owns 11,329 shares of the utilities provider’s stock worth $127,000 after purchasing an additional 5,489 shares in the last quarter. HRT Financial LLC purchased a new stake in The AES Corporation in the 1st quarter worth $132,000. Finally, Community Bank & Trust Waco Texas purchased a new stake in The AES Corporation in the 2nd quarter worth $134,000. Institutional investors and hedge funds own 93.21% of the company’s stock.
The AES Corporation 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. It is organized into six strategic business units (SBUs): the United States; Andes; Brazil; Mexico, Central America and the Caribbean (MCAC); Europe, and Asia.
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