Zacks Investment Research cut shares of Pinnacle West Capital (NYSE:PNW) from a hold rating to a sell rating in a research note published on Monday, January 8th.
According to Zacks, “In last six months, shares of Pinnacle West have lost its value compared with growth of its industry. Pinnacle West is subject to comprehensive regulations by federal, state and local regulatory agencies. In addition, its operations are subject to fluctuations in commodity price, as well as operational risks and hazards. However, Pinnacle West is well positioned to gain from the ongoing economic improvement in its service territories. Better economic prospects, increase in the customer count and higher customer spending are expected to drive earnings. The company is also expanding its renewable generation portfolio. “
Several other brokerages have also recently issued reports on PNW. SunTrust Banks reiterated a hold rating and issued a $91.00 price objective on shares of Pinnacle West Capital in a research note on Friday, November 24th. Morgan Stanley lifted their price objective on Pinnacle West Capital from $90.00 to $91.00 and gave the company an underweight rating in a research note on Wednesday, December 13th. Bank of America started coverage on Pinnacle West Capital in a research note on Tuesday, October 24th. They issued a neutral rating and a $89.00 price objective for the company. ValuEngine upgraded Pinnacle West Capital from a hold rating to a buy rating in a research note on Tuesday, November 14th. Finally, Credit Suisse Group started coverage on Pinnacle West Capital in a research note on Wednesday, September 20th. They set a neutral rating and a $90.00 target price for the company. Two equities research analysts have rated the stock with a sell rating, ten have issued a hold rating and one has given a buy rating to the company. Pinnacle West Capital has a consensus rating of Hold and a consensus target price of $86.20.
Shares of Pinnacle West Capital (PNW) opened at $77.73 on Monday. The stock has a market capitalization of $8,680.00, a PE ratio of 16.79, a P/E/G ratio of 5.60 and a beta of 0.27. The company has a current ratio of 0.90, a quick ratio of 0.68 and a debt-to-equity ratio of 0.85. Pinnacle West Capital has a 52-week low of $76.89 and a 52-week high of $92.48.
Pinnacle West Capital (NYSE:PNW) last released its earnings results on Friday, November 3rd. The utilities provider reported $2.46 earnings per share for the quarter, beating the consensus estimate of $2.33 by $0.13. The company had revenue of $1.18 billion during the quarter, compared to the consensus estimate of $1.21 billion. Pinnacle West Capital had a return on equity of 10.31% and a net margin of 14.67%. Pinnacle West Capital’s revenue was up 1.4% compared to the same quarter last year. During the same period in the previous year, the company posted $2.35 EPS. analysts predict that Pinnacle West Capital will post 4.26 earnings per share for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, March 1st. Investors of record on Thursday, February 1st will be issued a dividend of $0.695 per share. This represents a $2.78 dividend on an annualized basis and a yield of 3.58%. The ex-dividend date of this dividend is Wednesday, January 31st. Pinnacle West Capital’s dividend payout ratio is presently 60.04%.
In other Pinnacle West Capital news, EVP David P. Falck sold 4,500 shares of the company’s stock in a transaction on Thursday, December 14th. The stock was sold at an average price of $89.07, for a total value of $400,815.00. Following the sale, the executive vice president now owns 40,838 shares of the company’s stock, valued at $3,637,440.66. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Donald E. Brandt sold 18,153 shares of the company’s stock in a transaction on Thursday, November 9th. The shares were sold at an average price of $89.54, for a total value of $1,625,419.62. Following the completion of the sale, the chief executive officer now owns 118,574 shares in the company, valued at $10,617,115.96. The disclosure for this sale can be found here. Insiders have sold 48,881 shares of company stock worth $4,124,196 in the last ninety days. 0.70% of the stock is currently owned by corporate insiders.
Large investors have recently modified their holdings of the company. Captrust Financial Advisors purchased a new stake in shares of Pinnacle West Capital in the second quarter valued at $109,000. Pacer Advisors Inc. lifted its position in Pinnacle West Capital by 8.3% during the second quarter. Pacer Advisors Inc. now owns 2,270 shares of the utilities provider’s stock worth $193,000 after buying an additional 174 shares during the period. Banced Corp purchased a new position in Pinnacle West Capital during the fourth quarter worth about $201,000. Kovack Advisors Inc. purchased a new position in Pinnacle West Capital during the fourth quarter worth about $202,000. Finally, Stock Yards Bank & Trust Co. purchased a new position in Pinnacle West Capital during the third quarter worth about $205,000. Institutional investors and hedge funds own 82.75% of the company’s stock.
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About Pinnacle West Capital
Pinnacle West Capital Corporation is a holding company that operates through its subsidiaries. The Company operates through regulated electricity segment, which consists of traditional regulated retail and wholesale electricity businesses and related activities, and includes electricity generation, transmission and distribution.
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