The AES Corp. (AES) Rating Lowered to Sell at Zacks Investment Research
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 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.”
Several other research analysts have also weighed in on the stock. JPMorgan Chase & Co. reiterated a “buy” rating on shares of The AES Corp. in a research note on Thursday, June 16th. Barclays PLC lowered shares of The AES Corp. from an “overweight” rating to an “equal weight” rating and dropped their price objective for the company from $14.00 to $12.00 in a research note on Tuesday, October 4th. Finally, TheStreet lowered shares of 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 given a buy rating to the company. The stock currently has a consensus rating of “Hold” and an average target price of $12.75.
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The AES Corp. (NYSE:AES) traded up 0.51% during trading on Thursday, hitting $11.73. 5,451,984 shares of the company traded hands. The firm has a 50 day moving average of $12.42 and a 200 day moving average of $11.85. The AES Corp. has a one year low of $8.22 and a one year high of $13.32. The firm’s market cap is $7.73 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, beating the Zacks’ consensus estimate of $0.16 by $0.01. The AES Corp. had a negative net margin of 1.89% and a positive return on equity of 13.56%. The business had revenue of $3.23 billion for the quarter, compared to analyst estimates of $3.71 billion. During the same quarter in the previous year, the business earned $0.25 earnings per share. The firm’s revenue was down 11.7% compared to the same quarter last year. On average, analysts expect that The AES Corp. will post $0.99 earnings per share for the current fiscal year.
Hedge funds and other institutional investors have recently made changes to their positions in the company. BlackRock Institutional Trust Company N.A. raised its position in shares of 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 valued at $249,228,000 after buying an additional 842,585 shares during the period. 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 during the period. BlackRock Fund Advisors raised its position in shares of The AES Corp. by 2.0% in the first quarter. BlackRock Fund Advisors now owns 11,373,070 shares of the company’s stock valued at $134,202,000 after buying an additional 219,725 shares during the period. Herndon Capital Management LLC raised its position in shares of 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, Geode Capital Management LLC raised its position in shares of The AES Corp. by 0.8% in the first quarter. Geode Capital Management LLC now owns 5,419,606 shares of the company’s stock valued at $63,821,000 after buying an additional 43,485 shares during the period. Institutional investors own 94.54% 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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