Algonquin Power & Utilities Corp. (NYSE:AQN) is currently being evaluated by thirteen brokerages, as reported by Bloomberg. The consensus recommendation for the stock is a “Hold,” with one analyst giving it a sell rating, eight assigning a hold rating, and four issuing a buy rating. Over the last year, brokers who have reported on the stock have set an average 12-month target price of $9.90.
On Friday, September 22, 2023, NYSE AQN opened at $6.84. The market capitalization of the company stands at $4.71 billion, with a PE ratio of -17.99 and a beta of 0.50. Algonquin Power & Utilities’ 12-month low is $6.41 and its high is $12.73. As for its moving averages, the company’s 50-day moving average price is $7.58 and its 200-day moving average price is $8.07. In terms of liquidity ratios, it has a current ratio of 0.71 and quick ratio of 0.56, while its debt-to-equity ratio stands at 1.14.
Institutional investors and hedge funds have shown recent interest in Algonquin Power & Utilities stock by modifying their holdings accordingly. In the second quarter, Bank of Montreal Can acquired a new position in the company valued at approximately $336,911,000, and Starboard Value LP obtained a position worth $281,985,000 during the same period. Additionally, Norges Bank purchased shares during the fourth quarter worth $107,390,000 while Cooper Creek Partners Management LLC did so in the first quarter for $44,145,000. Bank of America Corp DE lifted its position significantly during the first quarter by acquiring an additional 4,608k shares.
On August 10th this year was when Algonquin Power & Utilities (NYSE:AQN) last released its earnings results. The company reported an EPS of $0.08 for the quarter, falling short of analysts’ consensus estimate of $0.10 by ($0.02). Revenue for the quarter amounted to $627.30 million, compared to the consensus estimate of $611.83 million. Algonquin Power & Utilities displayed a positive return on equity of 5.99% and a negative net margin of 8.96%. In comparison to the same quarter in the prior year, the company’s revenue was up by 0.5%. During that period, it earned $0.16 per share.
Looking ahead, equities research analysts anticipate that Algonquin Power & Utilities will generate earnings per share of $0.55 for the current year.
In conclusion, Algonquin Power & Utilities Corp.’s stock is currently rated as a “Hold” by thirteen brokerages, with a consensus target price of $9.90 over a 12-month period. The company’s recent financial performance fell slightly below expectations but showed an increase in revenue from the previous year’s corresponding quarter. It also attracted significant interest from institutional investors and hedge funds, further demonstrating market confidence in its future prospects.
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Mixed Reviews and Uncertainty Surrounding Algonquin Power & Utilities
In recent months, Algonquin Power & Utilities has encountered mixed reviews from equities research analysts. Several firms have adjusted their price targets and ratings, leading to a perplexing outlook for investors.
CSFB (Credit Suisse First Boston) lowered its target price from $10.50 to $10.00, while maintaining an “outperform” rating for the company in a report released on July 24th. Scotiabank followed suit by reducing their price objective on Algonquin Power & Utilities shares from $9.00 to $8.00 and assigning a “sector perform” rating on Monday. BMO Capital Markets also trimmed their target price from $8.50 to $8.00 and labeled the stock as “market perform” in a research note on September 8th.
Adding to the confusion, StockNews.com initiated coverage of Algonquin Power & Utilities on August 17th with a pessimistic “sell” rating. Finally, Royal Bank of Canada decreased its price objective from $9.00 to $8.00 and echoed Scotiabank’s sentiment with a “sector perform” rating on September 14th.
This flurry of rating adjustments has left investors perplexed about the future prospects of Algonquin Power & Utilities. While some believe it is still worth investing in, others are more cautious about the company’s performance within the sector.
Complicating matters further is the announcement of a quarterly dividend by Algonquin Power & Utilities. The dividend is set to be paid on October 13th, offering shareholders an opportunity for returns; however, there are conflicting opinions regarding the feasibility of such dividends based on the current financials of the company.
Based on recent reports, stockholders of record as of September 28th will receive a dividend of $0.108 per share. The ex-dividend date is scheduled for September 27th. These numbers translate to an annualized dividend of $0.43 and a dividend yield of 6.32%. The fact that the payout ratio stands at -113.16% only adds to the bewilderment surrounding Algonquin Power & Utilities.
The contradictory views of equities research analysts, combined with the declaration of a dividend, create a sense of uncertainty for potential investors. It is crucial for individuals interested in the company to conduct their due diligence and thoroughly evaluate the risks and rewards associated with investing in Algonquin Power & Utilities.
As the market evolves and new information emerges, it will be interesting to see how Algonquin Power & Utilities navigates these challenges and whether its stock can rebound from its current state of perplexity. Investors should stay watchful, perhaps seeking out further guidance from financial experts, before making any decisions regarding this particular company.
