AES (NYSE:AES) Shares Gap Up on Better-Than-Expected Earnings

AES Corp (NYSE:AES) gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $16.76, but opened at $17.19. AES shares last traded at $17.68, with a volume of 5,717,115 shares traded.

The utilities provider reported $0.48 EPS for the quarter, beating analysts’ consensus estimates of $0.40 by $0.08. AES had a return on equity of 18.94% and a net margin of 3.78%. The firm had revenue of $2.63 billion for the quarter, compared to analysts’ expectations of $2.90 billion. During the same quarter in the prior year, the firm earned $0.35 EPS. The business’s revenue for the quarter was down 7.5% compared to the same quarter last year.

The company also recently declared a quarterly dividend, which will be paid on Friday, November 15th. Stockholders of record on Friday, November 1st will be given a dividend of $0.137 per share. The ex-dividend date of this dividend is Thursday, October 31st. This represents a $0.55 dividend on an annualized basis and a dividend yield of 3.10%. AES’s dividend payout ratio is presently 44.35%.

A number of research analysts have recently commented on the company. Morgan Stanley upped their price target on AES from $17.50 to $18.00 and gave the company an “equal weight” rating in a research report on Wednesday, September 25th. TheStreet cut AES from a “b” rating to a “c+” rating in a research report on Tuesday, August 6th. Evercore ISI set a $19.00 price target on AES and gave the company a “buy” rating in a research report on Wednesday, August 7th. Finally, ValuEngine raised AES from a “sell” rating to a “hold” rating in a research report on Wednesday, October 16th. Three analysts have rated the stock with a hold rating and three have issued a buy rating to the company’s stock. AES has a consensus rating of “Buy” and a consensus target price of $17.64.

In related news, Director Jeffrey W. Ubben acquired 200,000 shares of the firm’s stock in a transaction that occurred on Monday, August 12th. The shares were bought at an average cost of $15.25 per share, for a total transaction of $3,050,000.00. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, SVP Julian Nebreda sold 18,864 shares of the business’s stock in a transaction on Friday, August 30th. The shares were sold at an average price of $15.24, for a total value of $287,487.36. Following the sale, the senior vice president now owns 35,314 shares in the company, valued at $538,185.36. The disclosure for this sale can be found here. 1.06% of the stock is owned by corporate insiders.

Several large investors have recently added to or reduced their stakes in AES. SG Americas Securities LLC increased its stake in AES by 204.0% in the 2nd quarter. SG Americas Securities LLC now owns 373,219 shares of the utilities provider’s stock worth $6,255,000 after acquiring an additional 250,431 shares during the last quarter. Bank of New York Mellon Corp increased its stake in AES by 7.5% in the 2nd quarter. Bank of New York Mellon Corp now owns 9,931,902 shares of the utilities provider’s stock worth $166,458,000 after acquiring an additional 691,328 shares during the last quarter. Hennessy Advisors Inc. increased its stake in AES by 3.0% in the 2nd quarter. Hennessy Advisors Inc. now owns 1,340,200 shares of the utilities provider’s stock worth $22,462,000 after acquiring an additional 39,100 shares during the last quarter. Neo Ivy Capital Management bought a new position in AES in the 2nd quarter worth about $725,000. Finally, Gulf International Bank UK Ltd increased its stake in AES by 1.4% in the 2nd quarter. Gulf International Bank UK Ltd now owns 148,198 shares of the utilities provider’s stock worth $2,483,000 after acquiring an additional 2,000 shares during the last quarter. Institutional investors own 93.32% of the company’s stock.

The company has a debt-to-equity ratio of 3.41, a quick ratio of 1.24 and a current ratio of 1.36. The firm has a market capitalization of $11.62 billion, a P/E ratio of 14.26, a price-to-earnings-growth ratio of 1.54 and a beta of 1.05. The business has a 50 day simple moving average of $16.43 and a two-hundred day simple moving average of $16.39.

About AES (NYSE: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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