According to a recent report by Bloomberg, Avangrid, Inc. (NYSE:AGR) has received an average rating of “Reduce” from four analysts who are currently covering the firm. Out of the four analysts, one has assigned a sell rating, while three have issued a hold rating on the company’s stock. The average twelve-month target price among these brokerages, based on their coverage of the stock over the past year, is $37.75.
On Friday, September 25, 2023, Avangrid opened at $33.43 on the New York Stock Exchange (NYSE). The company’s financial indicators include a debt-to-equity ratio of 0.41, a current ratio of 0.59, and a quick ratio of 0.49. Its 50-day simple moving average stands at $35.34, while its 200-day simple moving average is $37.73.
Avangrid has experienced a range between its 12-month low of $33.12 and its 12-month high of $46.33 in stock prices. As for market capitalization, the company currently holds a value of $12.93 billion, with a price-to-earnings (P/E) ratio of 22.29 and a beta value of 0.43.
Various institutional investors and hedge funds have recently made changes to their stakes in AGR. For instance, ATLAS Infrastructure Partners UK Ltd., an investment firm specializing in infrastructure projects within the United Kingdom, has increased its position in Avangrid by 103.1% during the first quarter after acquiring an additional 2,300,782 shares valued at approximately $180 million.
Osaic Holdings Inc., another investor in Avangrid stock experienced significant growth by increasing its position within the second quarter by 740.2%. Osaic now owns around 605,650 shares worth approximately $2.8 million. Millennium Management LLC, a leading global investment management firm, increased its position by 9,303.6% during the second quarter and now holds about 527,167 Avangrid shares valued at $24.3 million. Additionally, BlackRock Inc., an asset management company, added 5.9% to its position during the same period and currently owns approximately 6,436,151 Avangrid shares worth $242.5 million.
It’s important to highlight that these institutional investors and hedge funds account for around 12.93% of the total outstanding shares in circulation.
In terms of financial performance, Avangrid last released its earnings results on Thursday, July 27th of this year. The company reported earnings per share (EPS) of $0.21 for the quarter, falling short of analysts’ consensus estimates of $0.50 by ($0.29). The return on equity (ROE) was reported at 2.94%, with a net margin of 7.23%. The company generated revenue of $1.59 billion during the quarter compared to a consensus estimate of $1.83 billion.
When comparing this data to the same period in the previous year, it is evident that Avangrid experienced a decline in revenue by 11.5%.
Equities research analysts expect Avangrid to post earnings per share (EPS) of approximately $2.09 for the current fiscal year.
Given these recent developments and evaluations made by industry professionals, it is crucial for investors and stakeholders to consider various factors before making any decisions regarding Avangrid’s stock.
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Avangrid’s Analyst Reports and Dividend Payout: Mixed Perspectives on Financial Stability and Growth
Avangrid, a company that has garnered considerable attention in recent times, has been the subject of numerous analyst reports. One such report came from KeyCorp, which upgraded Avangrid’s shares from an “underweight” rating to a “sector weight” rating on June 21st, 2023. On the same day, Mizuho released a report that reduced Avangrid’s price target from $39.00 to $37.00.
Further analysis of the company was conducted by TheStreet, which downgraded Avangrid’s shares from a “b-” rating to a “c” rating on August 28th, 2023. However, StockNews.com provided a different perspective by upgrading Avangrid’s shares from a “sell” rating to a “hold” rating just one day after TheStreet’s report.
Bank of America also weighed in on this matter and raised their price target for Avangrid from $34.00 to $35.00 on June 21st, suggesting they have faith in the company’s prospects.
In addition to these analyst reports, Avangrid recently announced its quarterly dividend payment scheduled for October 2nd, 2023. Shareholders appearing on the record as of September 1st will receive a dividend of $0.44 per share. This translates to an annualized dividend of $1.76 per share and yields at an impressive rate of 5.26%. It is worth noting that the ex-dividend date for this payout is set as August 31st.
One interesting aspect worth considering regarding Avangrid is its payout ratio, which currently stands at an astonishingly high figure of 117.33%. This peculiarity raises questions about the sustainability of such dividend payments and concerns about potential impacts on Avangrid’s financial stability and long-term growth prospects.
In conclusion, despite fluctuating ratings and differing opinions expressed in recent analyst reports, Avangrid continues to capture the attention of investors. Its upcoming quarterly dividend payment and relatively high yield attract considerable interest. However, its substantial payout ratio raises concerns about the company’s financial footing and ability to maintain its dividend payments over the long run.
