AES (AES) Lifted to Buy at Zacks Investment Research

Zacks Investment Research upgraded shares of AES (NYSE:AES) from a hold rating to a buy rating in a research note issued to investors on Wednesday, Zacks.com reports. The firm currently has $18.00 price target on the utilities provider’s stock.

According to Zacks, “In the past 12 months, shares of AES Corp have outperformed its industry. The company continues to streamline its portfolio by divesting assets and exiting markets, wherein it does not have or cannot develop a competitive edge. AES Corp is focused on preserving its financial flexibility by reducing costs. Also, the company is rapidly expanding its renewable footprint overseas. Besides asset divestment, the company is teaming up with other companies to expand its footprint in potential markets. However, focus on long-term supply contracts exposes the company to commodity price risks. The political landscape in Brazil is unstable and has caused a delay in AES Corp’s reform plans. Moreover,”

Shares of NYSE:AES opened at $16.34 on Wednesday. The company has a debt-to-equity ratio of 3.27, a current ratio of 1.34 and a quick ratio of 1.21. The firm has a market capitalization of $10.85 billion, a price-to-earnings ratio of 13.18, a P/E/G ratio of 1.56 and a beta of 1.04. AES has a 52-week low of $11.80 and a 52-week high of $18.52.

AES (NYSE:AES) last issued its earnings results on Tuesday, May 7th. The utilities provider reported $0.28 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.30 by ($0.02). The company had revenue of $2.65 billion during the quarter, compared to analysts’ expectations of $2.47 billion. AES had a net margin of 6.32% and a return on equity of 19.05%. The firm’s quarterly revenue was down 3.3% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.28 earnings per share. As a group, equities analysts expect that AES will post 1.34 earnings per share for the current fiscal year.

The business also recently announced a quarterly dividend, which was paid on Wednesday, May 15th. Shareholders of record on Wednesday, May 1st were issued a $0.1365 dividend. This represents a $0.55 annualized dividend and a yield of 3.34%. The ex-dividend date was Tuesday, April 30th. AES’s payout ratio is currently 44.35%.

In related news, insider Jeffrey W. Ubben bought 2,582,000 shares of the company’s stock in a transaction on Monday, May 13th. The stock was bought at an average cost of $16.10 per share, for a total transaction of $41,570,200.00. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Jeffrey W. Ubben bought 2,482,000 shares of the company’s stock in a transaction on Thursday, May 9th. The stock was bought at an average price of $16.11 per share, with a total value of $39,985,020.00. The disclosure for this purchase can be found here. 1.06% of the stock is owned by corporate insiders.

Large investors have recently modified their holdings of the business. Horizon Investments LLC purchased a new position in shares of AES during the 1st quarter worth $209,000. BTC Capital Management Inc. grew its holdings in shares of AES by 4.8% during the 1st quarter. BTC Capital Management Inc. now owns 227,883 shares of the utilities provider’s stock worth $4,118,000 after purchasing an additional 10,355 shares during the period. Kore Private Wealth LLC purchased a new position in shares of AES during the 1st quarter worth $33,000. Kiwi Wealth Investments Limited Partnership grew its holdings in shares of AES by 4.7% during the 1st quarter. Kiwi Wealth Investments Limited Partnership now owns 198,482 shares of the utilities provider’s stock worth $3,589,000 after purchasing an additional 8,820 shares during the period. Finally, Jane Street Group LLC purchased a new position in shares of AES during the 1st quarter worth $479,000. Institutional investors own 94.30% of the company’s stock.

AES Company Profile

The AES Corporation operates as a diversified power generation and utility company. It owns and/or operates power plants to generate and sell power to customers, such as utilities, industrial users, and other intermediaries. The company also owns and/or operates utilities to generate or purchase, distribute, transmit, and sell electricity to end-user customers in the residential, commercial, industrial, and governmental sectors; and generates and sells electricity on the wholesale market.

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