Algonquin Power & Utilities Corp. (NYSE:AQN) Receives $6.13 Average Price Target from Brokerages

Algonquin Power & Utilities Corp. (NYSE:AQN) has garnered attention in the financial market, with a recent consensus rating of "Hold" assigned by eleven analysts covering the company, as reported by MarketBeat Ratings. Out of these analysts, ten have issued hold ratings while one has given a strong buy recommendation. The average price target set by these brokerages for AQN shares over the next year stands at $6.13.

Several recent analyst reports have highlighted the stock's performance. For instance, Scotiabank lowered its target price on Algonquin Power & Utilities from $5.75 to $5.25, designating a "sector perform" rating on November 8th. Similarly, JPMorgan Chase & Co. reaffirmed a "neutral" rating with a price target of $7.00 as of December 12th. On the other hand, CIBC reduced its target price from $5.75 to $5.50, also maintaining a "neutral" rating on October 22nd. In another report, Royal Bank of Canada kept its "sector perform" rating and established a $6.00 price target on October 11th. Notably, Wells Fargo & Company adjusted its price target from $6.00 down to $5.50, issuing an "equal weight" rating on October 16th.

Institutional Trading Activity

In addition to analysts, institutional investors have also made significant changes to their holdings of Algonquin Power & Utilities. The Manufacturers Life Insurance Company has notably increased its stake by 320.6% in the second quarter, now holding 7,273,228 shares valued at approximately $42.63 million after acquiring an additional 5,544,063 shares. Meanwhile, the BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp has raised its holdings by 156.0%, now possessing 8,905,059 shares worth $52.34 million after adding 5,426,523 shares in the same quarter.

Other institutional moves include Private Management Group Inc. entering a new position valued at around $12.36 million in the third quarter, while Yaupon Capital Management LP also acquired a new stake worth approximately $11.99 million. Additionally, Davidson Kempner Capital Management LP increased its holdings by 79.8%, now owning 4,634,250 shares valued at $27.16 million. Overall, institutional investors and hedge funds collectively own about 62.28% of the company's stock.

Performance and Financials

As of a recent trading session, shares of NYSE:AQN opened at $4.29. The company has a debt-to-equity ratio of 1.17, a quick ratio of 0.73, and a current ratio of 0.92. Notably, its 50-day moving average price stands at $4.64, and the 200-day moving average price is $5.22. Algonquin Power & Utilities reached a 52-week low of $4.25 and a high of $6.79. Its market capitalization is approximately $3.29 billion, with a PE ratio of -3.33 and a beta of 0.69.

Algonquin Power & Utilities recently reported its earnings results on November 7th, revealing an earnings per share (EPS) of $0.08 for the quarter, slightly missing analysts' expectations of $0.09 by $0.01. The company had a negative net margin of 39.12% but recorded a positive return on equity of 5.22%. Revenue for the quarter was reported at $573.20 million, which fell short of expectations of $620.46 million. However, this revenue marked a 1.5% increase compared to the same period the previous year, with analysts forecasting an EPS of 0.39 for the current fiscal year.

Dividend Announcement

In a recent development, Algonquin Power & Utilities declared a quarterly dividend, set to be paid on January 15th. Shareholders on record as of December 31st will receive a dividend of $0.065 per share. This establishes an annualized dividend of $0.26, resulting in a yield of 6.06%. It's worth noting that the company's current dividend payout ratio is at -20.16%.

Company Overview

Algonquin Power & Utilities Corp. operates in the power and utility sectors across the United States, Canada, and other locations. The company functions through two main segments: Regulated Services Group and Renewable Energy Group. Its operations primarily involve managing regulated electric, water distribution, wastewater collection, and natural gas utility systems along with transmission operations.

Algonquin, Power, Utilities