Shares of Algonquin Power & Utilities Corp. (NYSE:AQN) reached a new 52-week high on Tuesday, trading as high as $6.65 before settling at $6.6350. The trading volume was notable, with 4,985,161 shares changing hands, compared to the previous close of $6.44. This surge in stock price reflects positive sentiment among analysts and investors regarding the company’s performance and future prospects.
Analyst Ratings Indicate Positive Momentum
Recent reports from Wall Street analysts highlight a mix of ratings for Algonquin Power & Utilities. Weiss Ratings maintained a “sell (D+)” rating in a note issued on December 29, 2023. Conversely, National Bank of Canada upgraded the stock from “hold” to “strong-buy” on January 6, 2024.
On October 24, 2023, Raymond James Financial raised their price target from $6.00 to $6.50, assigning a “market perform” rating. Following this, National Bank Financial set a target price of $7.50, upgrading their rating to “outperform” on January 7, 2024. Meanwhile, Janney Montgomery Scott established a price target of $7.00 on November 10, 2023. Currently, the consensus rating for the stock is “Moderate Buy” with a target price of $6.70, according to MarketBeat.com.
Financial Performance and Dividend Announcement
In its latest earnings report released on November 7, 2023, Algonquin Power & Utilities reported earnings of $0.09 per share for the quarter, surpassing the consensus estimate of $0.06 by $0.03. The company generated revenue of $600.80 million, slightly exceeding the estimated $596.67 million. The firm registered a negative net margin of 1.11% but achieved a positive return on equity of 5.14%. For the current year, analysts expect the company to report earnings of $0.38 per share.
Additionally, Algonquin Power & Utilities announced a quarterly dividend of $0.065 per share, which was paid on January 15, 2024. This annualizes to $0.26, yielding approximately 3.9%. The ex-dividend date was December 31, 2023, and the company’s dividend payout ratio stands at an atypical -650.00%.
Institutional Investment Trends
Recent shifts in institutional investment indicate robust interest in Algonquin Power & Utilities. The Public Sector Pension Investment Board increased its stake by 2.5%, now holding 74,271 shares valued at approximately $424,000. Similarly, Ballentine Partners LLC raised its stake by 10.6%, owning 23,484 shares worth around $135,000.
Furthermore, SG Americas Securities LLC increased its holdings by 29.1% in the third quarter, owning 15,840 shares valued at $85,000. The Vanguard Personalized Indexing Management LLC expanded its investment by 6.3%, now controlling 81,643 shares valued at approximately $438,000. In total, institutional investors hold 62.28% of Algonquin’s stock.
Algonquin Power & Utilities, headquartered in Oakville, Ontario, operates as a diversified generation, transmission, and distribution utility. Established in 1988, the company focuses on both regulated utilities and renewable energy segments, including hydroelectric, solar, wind, and thermal generation facilities across North America. The company’s strategy emphasizes expanding its renewable energy capacity in regions with supportive regulatory environments, further positioning it for growth in the evolving energy landscape.
