Ameren (AEE) Downgraded by Zacks Investment Research

Ameren (NYSE:AEE) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Friday.

According to Zacks, “Ameren Corp's aging infrastructure may pose risks to system reliability and force it to incur unplanned capital expenditures and operating costs. Stringent environmental regulations and operational risks might be potential growth deterrents.  Also its stock is overvalued compared to its historical levels in terms of EV/EBITDA ratio. However, the company is investing heavily to upgrade its aging infrastructure.”

Several other research analysts also recently commented on AEE. KeyCorp reissued a “hold” rating on shares of Ameren in a research note on Friday, October 20th. ValuEngine downgraded Ameren from a “buy” rating to a “hold” rating in a research note on Monday, December 4th. Morgan Stanley reissued an “equal weight” rating on shares of Ameren in a research note on Friday, September 8th. Finally, Bank of America assumed coverage on Ameren in a research note on Tuesday, October 24th. They issued a “neutral” rating and a $62.00 price objective for the company. Three investment analysts have rated the stock with a sell rating, five have given a hold rating and one has given a strong buy rating to the stock. The stock currently has a consensus rating of “Hold” and an average target price of $56.80.

Ameren (NYSE:AEE) traded down $0.66 during midday trading on Friday, reaching $57.43. The company had a trading volume of 1,647,400 shares, compared to its average volume of 1,445,000. Ameren has a 1 year low of $51.35 and a 1 year high of $64.89. The company has a current ratio of 0.61, a quick ratio of 0.40 and a debt-to-equity ratio of 0.92. The firm has a market cap of $13,930.00, a P/E ratio of 22.79, a P/E/G ratio of 2.76 and a beta of 0.37.

Ameren (NYSE:AEE) last posted its quarterly earnings data on Friday, November 3rd. The utilities provider reported $1.24 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $1.31 by ($0.07). Ameren had a net margin of 10.03% and a return on equity of 8.61%. The firm had revenue of $1.72 billion during the quarter, compared to analyst estimates of $1.87 billion. During the same period in the prior year, the company posted $1.52 earnings per share. The firm’s revenue for the quarter was down 7.3% compared to the same quarter last year. research analysts predict that Ameren will post 2.8 EPS for the current fiscal year.

In other Ameren news, SVP Gregory L. Nelson sold 12,000 shares of the company’s stock in a transaction on Wednesday, November 22nd. The stock was sold at an average price of $62.68, for a total value of $752,160.00. Following the completion of the sale, the senior vice president now directly owns 36,785 shares in the company, valued at approximately $2,305,683.80. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. 0.38% of the stock is owned by corporate insiders.

Large investors have recently modified their holdings of the business. APG Asset Management N.V. grew its holdings in shares of Ameren by 463.6% during the 3rd quarter. APG Asset Management N.V. now owns 3,462,798 shares of the utilities provider’s stock worth $200,288,000 after purchasing an additional 2,848,400 shares during the period. Janus Henderson Group PLC grew its holdings in shares of Ameren by 6,693.2% during the 2nd quarter. Janus Henderson Group PLC now owns 1,950,938 shares of the utilities provider’s stock worth $106,658,000 after purchasing an additional 1,922,219 shares during the period. Ameriprise Financial Inc. grew its holdings in shares of Ameren by 24.8% during the 2nd quarter. Ameriprise Financial Inc. now owns 2,972,940 shares of the utilities provider’s stock worth $162,535,000 after purchasing an additional 590,243 shares during the period. Canada Pension Plan Investment Board grew its holdings in shares of Ameren by 452.5% during the 3rd quarter. Canada Pension Plan Investment Board now owns 678,763 shares of the utilities provider’s stock worth $39,260,000 after purchasing an additional 555,900 shares during the period. Finally, Wells Fargo & Company MN grew its holdings in shares of Ameren by 12.9% during the 3rd quarter. Wells Fargo & Company MN now owns 4,478,768 shares of the utilities provider’s stock worth $259,053,000 after purchasing an additional 511,854 shares during the period. Institutional investors own 70.44% of the company’s stock.

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Ameren Company Profile

Ameren Corporation is a utility holding company. The Company’s subsidiaries include Ameren Missouri, Ameren Illinois and Ameren Transmission Company (ATXI). It operates through four segments. The Ameren Missouri segment includes all of the operations of Ameren Missouri. The Ameren Illinois Electric Distribution segment consists of the electric distribution business of Ameren Illinois.

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