According to Zacks, “AES Corp. continues to face unfavorable economic conditions at its Brazilian Strategic Business Unit (SBU). Apart from that stringent environmental regulations as well as political risks continue to pose challenges for the company. Moreover, the company’s focus on long-term supply contracts exposes it to commodity price risks. Also, its transmission and distribution businesses face several operational risks including breakdown, failure or damage of equipment or processes, accidents and labor disputes. On a brighter note, AES Corp. continues to streamline its portfolio through asset divestments and by exiting markets and businesses where it does not have or cannot develop a competitive advantage. Further, its efforts to expand the generation business and renewable assets could drive growth going forward.”
Several other analysts also recently issued reports on the company. Barclays PLC reiterated an overweight rating and set a $14.00 price target on shares of The AES Corp. in a research note on Thursday, July 7th. JPMorgan Chase & Co. reiterated a buy rating on shares of The AES Corp. in a research note on Thursday, June 16th. Finally, TheStreet downgraded The AES Corp. from a buy rating to a hold rating in a research note on Friday, August 5th. One equities research analyst has rated the stock with a sell rating, three have given a hold rating and three have assigned a buy rating to the company’s stock. The AES Corp. presently has an average rating of Hold and an average target price of $12.75.
Shares of The AES Corp. (NYSE:AES) traded down 0.17% during midday trading on Thursday, hitting $11.71. The stock had a trading volume of 1,758,839 shares. The firm has a 50-day moving average of $12.41 and a 200 day moving average of $11.85. The AES Corp. has a 12-month low of $8.22 and a 12-month high of $13.32. The firm’s market cap is $7.72 billion.
The AES Corp. (NYSE:AES) last released its quarterly earnings results on Friday, August 5th. The company reported $0.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.16 by $0.01. The company earned $3.23 billion during the quarter, compared to the consensus estimate of $3.71 billion. The AES Corp. had a positive return on equity of 13.56% and a negative net margin of 1.89%. The firm’s revenue was down 11.7% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.25 EPS. On average, analysts expect that The AES Corp. will post $0.99 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Tuesday, November 15th. Investors of record on Tuesday, November 1st will be paid a dividend of $0.11 per share. This represents a $0.44 annualized dividend and a yield of 3.75%. The AES Corp.’s payout ratio is -107.31%.
A number of hedge funds have recently made changes to their positions in AES. Riverhead Capital Management LLC boosted its position in The AES Corp. by 14.5% in the first quarter. Riverhead Capital Management LLC now owns 668,202 shares of the company’s stock valued at $7,886,000 after buying an additional 84,870 shares during the period. Pictet Asset Management Ltd. boosted its position in The AES Corp. by 4.5% in the first quarter. Pictet Asset Management Ltd. now owns 365,667 shares of the company’s stock valued at $3,584,000 after buying an additional 15,800 shares during the period. Meeder Asset Management Inc. boosted its position in The AES Corp. by 132.8% in the first quarter. Meeder Asset Management Inc. now owns 98,895 shares of the company’s stock valued at $1,167,000 after buying an additional 56,416 shares during the period. Zebra Capital Management LLC purchased a new position in The AES Corp. during the first quarter valued at approximately $1,692,000. Finally, Aviva PLC boosted its position in The AES Corp. by 0.7% in the first quarter. Aviva PLC now owns 347,917 shares of the company’s stock valued at $4,105,000 after buying an additional 2,320 shares during the period. Hedge funds and other institutional investors own 94.54% of the company’s stock.
The AES Corp. Company Profile
The AES Corporation is a holding company. The Company, through its subsidiaries and affiliates, operates a diversified portfolio of electricity generation and distribution businesses. The Company is organized into six strategic business units (SBUs): the United States; Andes; Brazil; Mexico, Central America and Caribbean (MCAC); Europe, and Asia.
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