The AES Corp. (AES) Stock Rating Lowered by Zacks Investment Research
The AES Corp. (NYSE:AES) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Thursday.
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.”
Other analysts also recently issued research reports about the stock. JPMorgan Chase & Co. reaffirmed a “buy” rating on shares of The AES Corp. in a research report on Thursday, June 16th. Barclays PLC downgraded shares of The AES Corp. from an “overweight” rating to an “equal weight” rating and lowered their price objective for the company from $14.00 to $12.00 in a research report on Tuesday, October 4th. Finally, TheStreet downgraded shares of The AES Corp. from a “buy” rating to a “hold” rating in a research report on Friday, August 5th. One investment analyst has rated the stock with a sell rating, three have issued a hold rating and three have issued a buy rating to the stock. The stock presently has an average rating of “Hold” and a consensus price target of $12.75.
Shares of The AES Corp. (NYSE:AES) traded up 1.157% during trading on Thursday, hitting $11.805. 2,645,402 shares of the stock were exchanged. The company’s market cap is $7.78 billion. The AES Corp. has a 12-month low of $8.22 and a 12-month high of $13.32. The firm has a 50 day moving average of $12.42 and a 200-day moving average of $11.85.
The AES Corp. (NYSE:AES) last posted its earnings results on Friday, August 5th. The company reported $0.17 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.16 by $0.01. The firm earned $3.23 billion during the quarter, compared to the consensus estimate of $3.71 billion. The AES Corp. had a negative net margin of 1.89% and a positive return on equity of 13.56%. The company’s revenue was down 11.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.25 EPS. On average, analysts forecast that The AES Corp. will post $0.99 earnings per share for the current year.
Several hedge funds have recently added to or reduced their stakes in AES. Capital International Investors increased its stake in The AES Corp. by 18.6% in the second quarter. Capital International Investors now owns 17,793,786 shares of the company’s stock worth $222,066,000 after buying an additional 2,788,267 shares during the last quarter. Emerald Acquisition Ltd. bought a new stake in The AES Corp. during the second quarter worth $27,018,000. Symons Capital Management Inc. bought a new stake in The AES Corp. during the second quarter worth $15,956,000. Herndon Capital Management LLC increased 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 worth $104,232,000 after buying an additional 886,881 shares during the last quarter. Finally, BlackRock Institutional Trust Company N.A. increased its stake in The AES Corp. by 4.2% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 21,120,981 shares of the company’s stock worth $249,228,000 after buying an additional 842,585 shares during the last quarter. 94.54% of the stock is owned by institutional investors and hedge funds.
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.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for The AES Corp. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for The AES Corp. and related companies with MarketBeat.com's FREE daily email newsletter.