Traders Buy Large Volume of Put Options on AES (NYSE:AES)

The AES Corporation (NYSE:AES) was the recipient of some unusual options trading activity on Wednesday. Investors acquired 5,561 put options on the stock. This is an increase of approximately 31% compared to the typical volume of 4,235 put options.

Key AES News

Here are the key news stories impacting AES this week:

• Positive Sentiment: AES Ohio reached an unopposed settlement on a three-year rate plan with the Public Utilities Commission of Ohio, which could improve visibility on future regulated earnings if approved. AES Ohio reaches unopposed settlement on three-year rate plan with PUCO
• Neutral Sentiment: Regulators are reviewing the proposed AES Ohio rate hike settlement, and consumer pushback suggests approval could face public scrutiny even though the settlement is currently unopposed among key parties. PUCO to review proposed AES Ohio rate hike settlement
• Neutral Sentiment: Consumer advocates are also pressuring regulators to reject the proposed AES Ohio increase, arguing that higher power costs are already hurting families; this adds headline risk but does not yet change the outcome. Ohio families urge regulators to reject AES hike, saying power costs are already crushing them
• Negative Sentiment: Options activity turned more bearish, with unusually heavy put buying on AES, suggesting some traders are positioning for downside or hedging ahead of the regulatory decision.
• Negative Sentiment: Separately, a Yahoo Finance report says consumer advocates are seeking a breakup of BlackRock as it attempts to buy AES Indiana’s parent company, adding uncertainty around a potential ownership-related transaction. Consumer advocates seek breakup of BlackRock as it attempts to buy AES Indiana parent company

Analyst Ratings Changes

A number of equities research analysts have recently commented on the stock. Weiss Ratings reiterated a “hold (c)” rating on shares of AES in a report on Monday, June 1st. Susquehanna downgraded shares of AES from a “positive” rating to a “neutral” rating and reduced their price objective for the company from $16.00 to $15.00 in a research note on Thursday, April 9th. Finally, Argus lowered shares of AES from a “buy” rating to a “hold” rating in a research report on Thursday, March 26th. Eight analysts have rated the stock with a Hold rating, According to MarketBeat.com, AES currently has an average rating of “Hold” and a consensus price target of $15.71.

AES Stock Performance

AES stock opened at $14.82 on Friday. The stock has a fifty day moving average price of $14.68 and a 200 day moving average price of $14.72. AES has a 52 week low of $12.33 and a 52 week high of $17.65. The firm has a market capitalization of $10.57 billion, a P/E ratio of 7.93 and a beta of 0.96. The company has a current ratio of 0.73, a quick ratio of 0.65 and a debt-to-equity ratio of 2.97.

AES (NYSE:AES) last issued its quarterly earnings results on Tuesday, May 5th. The utilities provider reported $0.68 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.50 by $0.18. The firm had revenue of $3.18 billion for the quarter, compared to analyst estimates of $3.11 billion. AES had a return on equity of 22.66% and a net margin of 10.78%. Equities research analysts anticipate that AES will post 2.27 earnings per share for the current year.

AES Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, August 14th. Investors of record on Friday, July 31st will be given a $0.176 dividend. The ex-dividend date of this dividend is Friday, July 31st. This represents a $0.70 annualized dividend and a dividend yield of 4.7%. AES’s dividend payout ratio (DPR) is currently 37.43%.

Hedge Funds Weigh In On AES

A number of large investors have recently bought and sold shares of AES. Root Financial Partners LLC boosted its holdings in shares of AES by 259.9% in the 1st quarter. Root Financial Partners LLC now owns 2,822 shares of the utilities provider’s stock valued at $40,000 after purchasing an additional 2,038 shares during the last quarter. Los Angeles Capital Management LLC acquired a new stake in shares of AES during the 4th quarter worth $42,000. EverSource Wealth Advisors LLC increased its holdings in shares of AES by 61.0% during the 1st quarter. EverSource Wealth Advisors LLC now owns 5,296 shares of the utilities provider’s stock worth $75,000 after buying an additional 2,006 shares during the last quarter. Sound Income Strategies LLC purchased a new position in shares of AES in the 1st quarter worth $78,000. Finally, CoreCap Advisors LLC boosted its holdings in AES by 158.4% in the second quarter. CoreCap Advisors LLC now owns 6,277 shares of the utilities provider’s stock valued at $92,000 after acquiring an additional 3,848 shares during the last quarter. Hedge funds and other institutional investors own 93.13% of the company’s stock.

AES Company Profile

AES Corporation is a global energy company focused on the generation and distribution of electricity across diversified markets. Headquartered in Arlington, Virginia, AES develops, builds and operates power plants and distribution systems that serve residential, industrial and commercial customers. The company’s portfolio includes thermal, renewable and battery energy storage facilities designed to deliver reliable and sustainable electricity solutions.

Through its subsidiaries, AES operates a balanced mix of power generation assets, including natural gas, coal and renewables such as solar and wind.