AES (AES) Upgraded to “Buy” at Zacks Investment Research

AES (NYSE:AES) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Wednesday, Zacks.com reports. The brokerage presently has a $18.00 target price on the utilities provider’s stock. Zacks Investment Research‘s price target points to a potential upside of 11.63% from the company’s previous close.

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,”

AES traded up $0.05 during trading hours on Wednesday, hitting $16.13. The company’s stock had a trading volume of 1,508,781 shares, compared to its average volume of 6,561,861. AES has a 12 month low of $11.80 and a 12 month high of $18.52. The stock has a market capitalization of $10.69 billion, a PE ratio of 13.00, a P/E/G ratio of 1.53 and a beta of 1.04. The company has a debt-to-equity ratio of 3.27, a quick ratio of 1.21 and a current ratio of 1.34.

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

In other news, insider Jeffrey W. Ubben acquired 2,582,000 shares of the business’s stock in a transaction on Monday, May 13th. The shares were acquired at an average price of $16.10 per share, for a total transaction of $41,570,200.00. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Jeffrey W. Ubben acquired 2,482,000 shares of the business’s stock in a transaction on Thursday, May 9th. The shares were purchased at an average price of $16.11 per share, for a total transaction of $39,985,020.00. The disclosure for this purchase can be found here. Insiders own 1.06% of the company’s stock.

A number of hedge funds have recently bought and sold shares of AES. Hsbc Holdings PLC grew its holdings in shares of AES by 129.4% in the first quarter. Hsbc Holdings PLC now owns 915,898 shares of the utilities provider’s stock worth $16,559,000 after purchasing an additional 516,616 shares during the last quarter. Loomis Sayles & Co. L P increased its holdings in shares of AES by 67.7% during the first quarter. Loomis Sayles & Co. L P now owns 142,942 shares of the utilities provider’s stock valued at $2,584,000 after acquiring an additional 57,687 shares in the last quarter. Qube Research & Technologies Ltd increased its holdings in shares of AES by 34.1% during the first quarter. Qube Research & Technologies Ltd now owns 37,570 shares of the utilities provider’s stock valued at $679,000 after acquiring an additional 9,551 shares in the last quarter. Natixis acquired a new position in shares of AES during the first quarter valued at about $20,930,000. Finally, Seeyond increased its holdings in shares of AES by 31.8% during the first quarter. Seeyond now owns 116,584 shares of the utilities provider’s stock valued at $2,108,000 after acquiring an additional 28,128 shares in the last quarter. Institutional investors and hedge funds own 94.30% of the company’s stock.

About AES

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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