Shares of Algonquin Power & Utilities Corp. (NYSE: AQN) achieved a new 52-week high on Tuesday, reaching $6.65 before closing at $6.6350. The trading volume for the day was notable, with 4,985,161 shares exchanged. This increase comes as a response to several positive analyst ratings and a solid earnings report that exceeded expectations.
Analysts have recently expressed varying outlooks on the utility provider. On December 29, Weiss Ratings reaffirmed a “sell (d+)” rating, while National Bank of Canada upgraded its rating from “hold” to “strong-buy” on January 6. On October 24, Raymond James Financial adjusted its price target for the stock from $6.00 to $6.50, maintaining a “market perform” rating. Another significant upgrade came from National Bank Financial, which raised its rating to “outperform” with a target price of $7.50 on January 7. Janney Montgomery Scott also set a price target of $7.00 on November 10. Overall, the consensus rating for Algonquin Power & Utilities stands at “Moderate Buy,” with a target price of $6.70, according to data from MarketBeat.com.
In its latest earnings report released on November 7, Algonquin Power & Utilities reported earnings per share (EPS) of $0.09, surpassing the consensus estimate of $0.06 by $0.03. The company’s revenue for the quarter was $600.80 million, slightly above the expected $596.67 million. Despite a negative net margin of 1.11%, the firm achieved a positive return on equity of 5.14%. Analysts forecast an EPS of 0.38 for the current year, indicating a cautious optimism for future performance.
Dividend Announcement and Institutional Investment
On January 15, Algonquin Power & Utilities announced a quarterly dividend of $0.065 per share, which was paid to shareholders of record on December 31. This translates to an annual dividend of $0.26 and a yield of 3.9%. However, the company’s dividend payout ratio currently sits at an unusual -650.00%, raising questions about the sustainability of this dividend in the long term.
Institutional investment in Algonquin Power & Utilities has seen some adjustments recently. Public Sector Pension Investment Board increased its stake by 2.5% in the second quarter, now owning 74,271 shares valued at approximately $424,000. Similarly, Ballentine Partners LLC raised its holdings by 10.6%, acquiring an additional 2,242 shares during the same period. Other investors like SG Americas Securities LLC and Vanguard Personalized Indexing Management LLC also boosted their positions, indicating growing confidence among institutional investors. Currently, approximately 62.28% of the stock is owned by hedge funds and institutional investors.
Company Overview
Algonquin Power & Utilities Corp., headquartered in Oakville, Ontario, is a diversified utility company established in 1988. The firm operates primarily through two segments: Regulated Utilities and Renewable Energy. Its Regulated Utilities segment encompasses electric, natural gas, and water distribution networks serving residential, commercial, and industrial customers across North America. Meanwhile, the Renewable Energy segment includes hydroelectric, solar, wind, and thermal generation assets. The company aims to expand its clean power capacity in regions that support sustainable energy initiatives.
As Algonquin Power & Utilities continues to evolve, investors and analysts alike will be closely monitoring its performance and strategic moves in the energy sector.
