Fortis (NYSE:FTS) Downgraded by Raymond James Financial to Hold

Raymond James Financial downgraded shares of Fortis (NYSE:FTS) from a moderate buy rating to a hold rating in a research report released on Wednesday,Zacks reports.

FTS has been the topic of several other reports. Weiss Ratings reissued a “buy (b)” rating on shares of Fortis in a research report on Thursday, October 15th. Barclays decreased their price objective on Fortis from $60.00 to $56.00 and set an “overweight” rating for the company in a report on Tuesday, September 29th. TD Securities reaffirmed a “buy” rating on shares of Fortis in a research report on Tuesday, August 4th. Wolfe Research set a $50.00 target price on Fortis in a report on Tuesday, August 4th. Finally, Royal Bank Of Canada increased their price target on Fortis from $80.00 to $89.00 and gave the company a “sector perform” rating in a research report on Monday, August 3rd. Three research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat, Fortis presently has a consensus rating of “Hold” and a consensus target price of $65.00.

Fortis Stock Performance

Shares of FTS stock opened at $60.93 on Wednesday. The company’s fifty day simple moving average is $55.04 and its 200-day simple moving average is $55.99. The company has a quick ratio of 0.47, a current ratio of 0.56 and a debt-to-equity ratio of 1.27. The firm has a market cap of $31.43 billion, a PE ratio of 23.99 and a beta of 0.42. Fortis has a 12 month low of $49.99 and a 12 month high of $60.98.

Fortis (NYSE:FTS) last announced its earnings results on Tuesday, November 3rd. The utilities provider reported $0.66 EPS for the quarter, topping the consensus estimate of $0.63 by $0.03. The business had revenue of $2.12 billion during the quarter, compared to analysts’ expectations of $2.27 billion. Fortis had a net margin of 14.66% and a return on equity of 7.46%. Equities research analysts expect that Fortis will post 2.56 EPS for the current fiscal year.

Fortis Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Tuesday, November 17th will be issued a dividend of C$0.67 per share. The ex-dividend date is Tuesday, November 17th. This is a positive change from Fortis’s previous quarterly dividend of C$0.64. This represents a $2.66 dividend on an annualized basis and a yield of 4.4%. Fortis’s dividend payout ratio is presently 73.23%.

Institutional Trading of Fortis

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Cibc World Market Inc. bought a new stake in shares of Fortis in the 2nd quarter valued at about $442,633,000. Legal & General Group Plc acquired a new stake in Fortis in the 2nd quarter valued at about $334,727,000. Connor Clark & Lunn Investment Management Ltd. acquired a new stake in Fortis in the 2nd quarter valued at about $311,146,000. Bank of Nova Scotia bought a new position in Fortis during the second quarter worth about $257,370,000. Finally, Canada Pension Plan Investment Board bought a new position in Fortis during the second quarter worth about $177,656,000. 57.77% of the stock is owned by institutional investors.

Fortis News Summary

Here are the key news stories impacting Fortis this week:

• Positive Sentiment: Fortis earned $0.66 per share, above the $0.63 consensus and up from $0.59 a year earlier. The earnings call also highlighted record growth investment and a new five-year capital outlook. Fortis Earnings Call Highlights Record Growth Investment
• Positive Sentiment: The company raised its quarterly dividend 3.9% to C$0.67 per share, equivalent to an indicated annual yield of about 4.5%. The dividend increase may appeal to income-focused investors. Fortis Q3 results, capital outlook and dividend announcement
• Negative Sentiment: Quarterly revenue of $2.12 billion was below analysts’ $2.27 billion estimate, tempering the positive earnings surprise. Fortis Q3 earnings and revenue report

About Fortis

Fortis Inc is a Canadian utility holding company that owns and operates regulated electric and natural gas utilities. Its businesses are primarily focused on the transmission and distribution of electricity, natural gas distribution, and related energy infrastructure.

Through its portfolio of utility subsidiaries, Fortis serves customers across Canada and the United States, with additional operations in the Caribbean. Its businesses include electric utilities, natural gas utilities, and electric transmission assets, providing essential energy services to residential, commercial, and industrial customers.

Fortis has expanded from its Canadian utility origins through acquisitions and investments in regulated infrastructure.