Zacks Investment Research Downgrades Exelon (EXC) to Hold
Zacks Investment Research lowered shares of Exelon (NYSE:EXC) from a buy rating to a hold rating in a research note issued to investors on Friday.
According to Zacks, “In the past 12 months, shares of Exelon Corporation have gained against a decline of the industry it belongs to. The company’s third-quarter earnings were on par with the Zacks Consensus Estimate but total revenues surpassed the same. Exelon is going to benefit from its $21 billion planned capital investment, focus on zero emission electricity generation and cost savings. The company continues with its hedging program to manage market risks and protect the value of its generation. Strong cash flow generation capacity will help it lower debt levels and increase value of its shareholders. However, Exelon is subject to the impact of commodity price volatility and price fluctuation in the wholesale markets. Stringent government regulation is also a cause of concern.”
Other equities analysts have also issued reports about the company. Macquarie upped their target price on Exelon from $45.00 to $46.00 and gave the company a buy rating in a research report on Monday, September 24th. Guggenheim reissued a buy rating and set a $51.00 price target on shares of Exelon in a research report on Monday, July 23rd. ValuEngine raised Exelon from a hold rating to a buy rating in a research report on Wednesday, October 24th. Royal Bank of Canada reissued a buy rating and set a $46.00 price target on shares of Exelon in a research report on Wednesday, November 7th. Finally, Morgan Stanley dropped their price target on Exelon from $48.00 to $47.00 and set an equal weight rating on the stock in a research report on Wednesday, September 26th. Eleven investment analysts have rated the stock with a hold rating and eight have given a buy rating to the company’s stock. The stock presently has a consensus rating of Hold and an average target price of $46.00.
Exelon (NYSE:EXC) last released its quarterly earnings results on Thursday, November 1st. The energy giant reported $0.88 earnings per share for the quarter, hitting the Zacks’ consensus estimate of $0.88. The firm had revenue of $8.08 billion during the quarter, compared to analysts’ expectations of $8.74 billion. Exelon had a return on equity of 9.35% and a net margin of 10.67%. Exelon’s quarterly revenue was up 5.4% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.85 EPS. As a group, sell-side analysts forecast that Exelon will post 3.12 EPS for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Monday, December 10th. Shareholders of record on Thursday, November 15th will be given a $0.345 dividend. This represents a $1.38 annualized dividend and a yield of 3.01%. The ex-dividend date of this dividend is Wednesday, November 14th. Exelon’s dividend payout ratio is presently 53.08%.
A number of hedge funds and other institutional investors have recently modified their holdings of EXC. West Chester Capital Advisors Inc. grew its stake in shares of Exelon by 8.4% in the third quarter. West Chester Capital Advisors Inc. now owns 15,682 shares of the energy giant’s stock worth $685,000 after purchasing an additional 1,219 shares in the last quarter. Credit Agricole S A lifted its stake in Exelon by 24.5% in the 2nd quarter. Credit Agricole S A now owns 6,225 shares of the energy giant’s stock worth $265,000 after acquiring an additional 1,225 shares in the last quarter. IFP Advisors Inc lifted its stake in Exelon by 4.2% in the 2nd quarter. IFP Advisors Inc now owns 30,932 shares of the energy giant’s stock worth $1,318,000 after acquiring an additional 1,234 shares in the last quarter. Sumitomo Life Insurance Co. lifted its stake in Exelon by 4.5% in the 2nd quarter. Sumitomo Life Insurance Co. now owns 28,596 shares of the energy giant’s stock worth $1,218,000 after acquiring an additional 1,235 shares in the last quarter. Finally, Lincoln National Corp lifted its stake in Exelon by 13.2% in the 2nd quarter. Lincoln National Corp now owns 10,658 shares of the energy giant’s stock worth $454,000 after acquiring an additional 1,240 shares in the last quarter. 79.39% of the stock is currently owned by hedge funds and other institutional investors.
Exelon Company Profile
Exelon Corporation, a utility services holding company, engages in energy generation and delivery businesses in the United States and Canada. The company owns electric generating facilities, such as nuclear, fossil, wind, hydroelectric, and solar generating facilities. It also sells electricity to wholesale and retail customers; and sells natural gas, renewable energy, and other energy-related products and services.
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