Pinnacle West Capital (NYSE:PNW) Stock Rating Cut to Sell at Wall Street Zen

Wall Street Zen lowered shares of Pinnacle West Capital (NYSE:PNW) from a hold rating to a sell rating in a report released on Saturday,Wall Street Zen reports.

Several other equities research analysts have also issued reports on the company. BMO Capital Markets dropped their price objective on Pinnacle West Capital from $106.00 to $104.00 and set a “market perform” rating for the company in a research note on Wednesday, July 22nd. Truist Financial decreased their target price on Pinnacle West Capital from $101.00 to $99.00 and set a “hold” rating on the stock in a research note on Monday, October 5th. HSBC assumed coverage on Pinnacle West Capital in a report on Thursday, October 22nd. They issued a “buy” rating and a $119.50 price target on the stock. Morgan Stanley lifted their price target on Pinnacle West Capital from $89.00 to $91.00 and gave the company an “equal weight” rating in a research report on Wednesday, October 21st. Finally, Jefferies Financial Group dropped their price target on Pinnacle West Capital from $129.00 to $109.00 and set a “buy” rating for the company in a research report on Monday, October 5th. Five research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $103.77.

Pinnacle West Capital Stock Performance

NYSE PNW opened at $104.11 on Friday. Pinnacle West Capital has a 1 year low of $86.18 and a 1 year high of $111.16. The company has a debt-to-equity ratio of 1.35, a current ratio of 0.71 and a quick ratio of 0.41. The stock has a market capitalization of $12.62 billion, a PE ratio of 19.57, a P/E/G ratio of 3.65 and a beta of 0.48. The company’s 50 day simple moving average is $99.05 and its two-hundred day simple moving average is $100.63.

Pinnacle West Capital (NYSE:PNW) last released its quarterly earnings results on Tuesday, November 3rd. The utilities provider reported $3.49 EPS for the quarter, beating analysts’ consensus estimates of $3.32 by $0.17. The firm had revenue of $1.97 billion during the quarter, compared to analyst estimates of $1.90 billion. Pinnacle West Capital had a net margin of 11.59% and a return on equity of 9.18%. The business’s revenue for the quarter was up 8.3% on a year-over-year basis. During the same period in the previous year, the business earned $3.39 EPS. Analysts predict that Pinnacle West Capital will post 4.91 earnings per share for the current fiscal year.

Pinnacle West Capital Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 1st. Stockholders of record on Monday, November 2nd will be given a dividend of $0.9250 per share. This is an increase from Pinnacle West Capital’s previous quarterly dividend of $0.91. The ex-dividend date is Monday, November 2nd. This represents a $3.70 annualized dividend and a dividend yield of 3.6%. Pinnacle West Capital’s dividend payout ratio is 69.55%.

Insider Activity

In related news, CAO Elizabeth Blankenship sold 980 shares of the company’s stock in a transaction on Monday, August 10th. The shares were sold at an average price of $99.17, for a total value of $97,186.60. Following the completion of the transaction, the chief accounting officer directly owned 10,886 shares in the company, valued at approximately $1,079,564.62. The trade was a 8.26% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 0.19% of the company’s stock.

Institutional Investors Weigh In On Pinnacle West Capital

Several hedge funds have recently added to or reduced their stakes in the company. Barrow Hanley Mewhinney & Strauss LLC bought a new position in shares of Pinnacle West Capital during the 2nd quarter valued at about $703,598,000. Soroban Capital Partners LP lifted its position in Pinnacle West Capital by 34.0% in the 1st quarter. Soroban Capital Partners LP now owns 3,854,815 shares of the utilities provider’s stock worth $388,373,000 after buying an additional 977,411 shares during the last quarter. Massachusetts Financial Services Co. MA boosted its stake in Pinnacle West Capital by 0.3% in the second quarter. Massachusetts Financial Services Co. MA now owns 2,853,685 shares of the utilities provider’s stock worth $305,344,000 after buying an additional 9,298 shares in the last quarter. Wellington Management Group LLP boosted its stake in Pinnacle West Capital by 101.3% in the second quarter. Wellington Management Group LLP now owns 1,456,941 shares of the utilities provider’s stock worth $155,893,000 after buying an additional 733,069 shares in the last quarter. Finally, Dimensional Fund Advisors LP boosted its stake in Pinnacle West Capital by 2.1% in the first quarter. Dimensional Fund Advisors LP now owns 1,345,955 shares of the utilities provider’s stock worth $135,604,000 after buying an additional 27,244 shares in the last quarter. Institutional investors own 91.51% of the company’s stock.

About Pinnacle West Capital

Pinnacle West Capital Corporation is an energy holding company whose principal subsidiary, Arizona Public Service Company (APS), provides electric service in Arizona. APS generates, transmits and distributes electricity to residential, commercial and industrial customers.

APS serves communities across central and northern Arizona, including the Phoenix metropolitan area. Its electricity supply comes from a mix of generating resources, including nuclear, natural gas, coal and renewable energy.

Pinnacle West became the parent company of APS in 1985.