Fortis (NYSE:FTS) Hits New 1-Year High After Dividend Announcement

Fortis (NYSE:FTS)’s stock price reached a new 52-week high during mid-day trading on Monday following a dividend announcement from the company. The stock traded as high as $59.40 and last traded at $59.4060, with a volume of 414,656 shares changing hands. The stock had previously closed at $58.67.

The newly announced dividend which will be paid on Tuesday, December 1st. Investors of record on Tuesday, November 17th will be given a dividend of C$0.67 per share. The ex-dividend date of this dividend is Tuesday, November 17th. This represents a $2.66 annualized dividend and a yield of 4.4%. This is an increase from Fortis’s previous quarterly dividend of C$0.64. Fortis’s dividend payout ratio is currently 73.68%.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on the company. Royal Bank Of Canada lifted their target price on Fortis from $80.00 to $89.00 and gave the stock a “sector perform” rating in a research report on Monday, August 3rd. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Fortis in a report on Thursday, October 15th. Wolfe Research set a $50.00 price target on Fortis in a research note on Tuesday, August 4th. TD Securities reissued a “buy” rating on shares of Fortis in a research note on Tuesday, August 4th. Finally, Scotiabank restated a “sector perform” rating on shares of Fortis in a research report on Tuesday, August 4th. Three analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat.com, Fortis has an average rating of “Hold” and an average price target of $65.00.

Fortis Stock Performance

The company has a debt-to-equity ratio of 1.27, a quick ratio of 0.47 and a current ratio of 0.56. The business’s fifty day simple moving average is $55.04 and its 200-day simple moving average is $55.99. The company has a market capitalization of $31.43 billion, a P/E ratio of 24.67 and a beta of 0.42.

Fortis (NYSE:FTS) last announced its quarterly earnings results on Tuesday, November 3rd. The utilities provider reported $0.66 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.63 by $0.03. The firm had revenue of $2.12 billion during the quarter, compared to analyst estimates of $2.27 billion. Fortis had a return on equity of 7.16% and a net margin of 14.17%. As a group, equities analysts anticipate that Fortis will post 2.55 earnings per share for the current fiscal year.

Key Headlines Impacting Fortis

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

Institutional Trading of Fortis

A number of hedge funds have recently added to or reduced their stakes in FTS. Cibc World Market Inc. purchased a new stake in shares of Fortis in the second quarter valued at $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. bought a new stake in Fortis during the 2nd quarter worth approximately $311,146,000. Bank of Nova Scotia acquired a new stake in Fortis during the 2nd quarter worth approximately $257,370,000. Finally, Canada Pension Plan Investment Board acquired a new position in Fortis during the 2nd quarter worth approximately $177,656,000. 57.77% of the stock is owned by institutional investors and hedge funds.

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.