AES (NYSE:AES) Stock Price Rises 5.5% - Is It a Good Investment?

Shares of The AES Corporation (NYSE:AES) saw a notable increase of 5.5% during trading on Monday, reaching a high of $15.64 before closing at $15.52. Approximately 2,496,326 shares were traded during the session, reflecting a significant drop from the average daily trading volume of 8,261,875 shares prior to this movement. The previous closing price was $14.71.

Analyst Insights

Many Wall Street analysts have shared their opinions regarding AES stock. Jefferies Financial Group began coverage on this stock with a "buy" rating and a price target of $20.00. Similarly, Barclays increased their price target for AES from $22.00 to $23.00 while maintaining an "overweight" rating. Additionally, on September 18, Evercore ISI upgraded AES to a "strong-buy" rating. In total, two analysts advised holding the stock, six recommended buying, and one classified it as a strong buy. According to MarketBeat.com, AES currently holds a consensus rating of "Moderate Buy," with an average price target sitting at $22.57.

Recent Stock Performance

The fifty-day simple moving average for AES is $17.85, and the 200-day simple moving average stands at $18.30. The company has a debt-to-equity ratio of 3.63, a current ratio of 0.97, and a quick ratio of 0.91. At present, AES has a market capitalization of $10.86 billion, a PE ratio of 10.58, and a beta of 1.10.

Quarterly Earnings Highlights

AES reported its quarterly earnings on October 31, revealing an earnings per share (EPS) of $0.71, exceeding the expected estimate of $0.60 by $0.11. The company achieved a net margin of 8.34% and a return on equity of 28.95%. Total revenue for the quarter reached $3.29 billion, although this was below the anticipated $3.46 billion. Year-over-year, revenue declined by 4.2%. Analysts anticipate that AES will post an EPS of 1.91 for the current year.

Dividend Update

AES has recently announced a quarterly dividend, which will be distributed on November 15. Shareholders on record as of November 1 will receive a dividend payment of $0.1725 per share, resulting in an annualized dividend of $0.69, corresponding to a dividend yield of 4.52%. The company's payout ratio currently stands at 47.92%.

Institutional Interest

There has been significant activity from institutional investors regarding AES stock. For instance, Norden Group LLC increased its stake in AES by 80.3% in the first quarter, now holding 27,902 shares valued at $500,000. Additionally, Mirae Asset Global Investments Co. Ltd. raised its holdings in AES remarkably by 316.7%, acquiring 247,663 shares. BNP Paribas Financial Markets also boosted their position in AES by 33.3%, now owning 794,793 shares worth $14.25 million. Other significant increases were noted for Janney Montgomery Scott LLC and Tokio Marine Asset Management Co. Ltd. Overall, 93.13% of AES's stock is currently owned by institutional investors and hedge funds.

AES Overview

The AES Corporation is a diversified power generation and utility firm with operations in the U.S. and abroad. The company manages power plants that generate and sell electricity to various customers, including utilities and industrial users. Additionally, AES operates utilities to distribute electricity to residential and commercial clients, as well as engaging in wholesale electricity markets.

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