The AES Corp. (NYSE:AES) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Wednesday.
According to Zacks, “AES Corp. continues to face unfavorable economic conditions at its Brazilian Strategic Business Unit (SBU). In addition, the Chilean government implemented taxes on emissions of carbon dioxide, particulate matter, sulfur dioxide and nitrogen oxides in Sep 2014; which on becoming effective will affect the company’s margins. Apart from the stringent environmental regulations, operational 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. However, 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.”
AES has been the subject of a number of other research reports. Barclays PLC lowered The AES Corp. from an “overweight” rating to an “equal weight” rating and reduced their price objective for the company from $14.00 to $12.00 in a research note on Tuesday, October 4th. TheStreet lowered 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 assigned a hold rating and three have assigned a buy rating to the company’s stock. The stock presently has a consensus rating of “Hold” and a consensus target price of $12.75.
Shares of The AES Corp. (NYSE:AES) traded up 1.6976% during trading on Wednesday, reaching $12.0715. The company’s stock had a trading volume of 1,923,187 shares. The stock’s market cap is $7.96 billion. The company has a 50 day moving average of $12.38 and a 200-day moving average of $11.86. The AES Corp. has a 12-month low of $8.22 and a 12-month high of $13.32.
The AES Corp. (NYSE:AES) last issued its quarterly earnings results on Friday, August 5th. The company reported $0.17 EPS for the quarter, topping the Zacks’ consensus estimate of $0.16 by $0.01. The AES Corp. had a positive return on equity of 13.56% and a negative net margin of 1.89%. The company earned $3.23 billion during the quarter, compared to analysts’ expectations of $3.71 billion. During the same quarter in the previous year, the firm posted $0.25 EPS. The firm’s revenue was down 11.7% compared to the same quarter last year. Analysts forecast that The AES Corp. will post $0.99 EPS for the current year.
The firm also recently declared a quarterly dividend, which will be paid on Tuesday, November 15th. Investors of record on Tuesday, November 1st will be paid a $0.11 dividend. The ex-dividend date is Friday, October 28th. This represents a $0.44 annualized dividend and a dividend yield of 3.71%. The AES Corp.’s dividend payout ratio is presently -107.31%.
Institutional investors have recently made changes to their positions in the stock. Capital International Investors raised its position in shares of The AES Corp. by 18.6% in the second quarter. Capital International Investors now owns 17,793,786 shares of the company’s stock valued at $222,066,000 after buying an additional 2,788,267 shares in the last quarter. Emerald Acquisition Ltd. purchased a new stake in The AES Corp. during the second quarter valued at approximately $27,018,000. Symons Capital Management Inc. purchased a new stake in The AES Corp. during the second quarter valued at approximately $15,956,000. Herndon Capital Management LLC raised its stake in The AES Corp. by 11.9% in the second quarter. Herndon Capital Management LLC now owns 8,352,280 shares of the company’s stock valued at $104,232,000 after buying an additional 886,881 shares during the period. Finally, A.R.T. Advisors LLC purchased a new stake in The AES Corp. during the first quarter valued at approximately $8,311,000. Hedge funds and other institutional investors own 94.57% of the company’s stock.
About The AES Corp.
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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