AES Sees Unusually Large Options Volume (NYSE:AES)

Key Points

• AES saw unusually heavy options activity on Wednesday, with 5,561 put options traded, about 31% above its average daily put volume.
• Despite the options activity, the stock was up 0.3% to $14.87, while recent analyst sentiment remains cautious: AES has a consensus Hold rating and an average target price of $15.71.
• The company recently beat quarterly earnings estimates and announced a quarterly dividend of $0.176 per share, implying a 4.7% annualized yield.

The AES Corporation (NYSE:AES - Get Free Report) was the target of unusually large options trading activity on Wednesday. Investors acquired 5,561 put options on the company. This is an increase of approximately 31% compared to the average daily volume of 4,235 put options.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on AES. Argus lowered AES from a "buy" rating to a "hold" rating in a research report on Thursday, March 26th. Weiss Ratings restated a "hold (c)" rating on shares of AES in a research report on Monday, June 1st. Finally, Susquehanna downgraded AES from a "positive" rating to a "neutral" rating and lowered their target price for the stock from $16.00 to $15.00 in a report on Thursday, April 9th. Eight analysts have rated the stock with a Hold rating, According to MarketBeat, AES has an average rating of "Hold" and a consensus target price of $15.71.

AES Stock Up 0.3%

NYSE:AES traded up $0.04 on Wednesday, hitting $14.87. The stock had a trading volume of 2,428,526 shares, compared to its average volume of 11,184,341. The company has a quick ratio of 0.65, a current ratio of 0.73 and a debt-to-equity ratio of 2.97. AES has a 52 week low of $12.33 and a 52 week high of $17.65. The business's fifty day moving average is $14.67 and its 200 day moving average is $14.71. The company has a market cap of $10.60 billion, a PE ratio of 7.95 and a beta of 0.96.

AES (NYSE:AES - Get Free Report) last posted its quarterly earnings results on Tuesday, May 5th. The utilities provider reported $0.68 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.50 by $0.18. The business had revenue of $3.18 billion during the quarter, compared to the consensus estimate of $3.11 billion. AES had a net margin of 10.78% and a return on equity of 22.66%. On average, equities research analysts expect that AES will post 2.27 EPS for the current fiscal year.

AES Announces Dividend

The firm also recently declared 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 yield of 4.7%. AES's dividend payout ratio (DPR) is presently 37.43%.

Institutional Trading of AES

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Root Financial Partners LLC lifted its stake in AES by 259.9% during the 1st quarter. Root Financial Partners LLC now owns 2,822 shares of the utilities provider's stock valued at $40,000 after acquiring an additional 2,038 shares in the last quarter. Los Angeles Capital Management LLC bought a new stake in shares of AES in the 4th quarter worth $42,000. EverSource Wealth Advisors LLC raised its holdings in shares of AES by 61.0% in the first quarter. EverSource Wealth Advisors LLC now owns 5,296 shares of the utilities provider's stock valued at $75,000 after purchasing an additional 2,006 shares during the last quarter. Sound Income Strategies LLC bought a new position in shares of AES during the first quarter valued at about $78,000. Finally, CoreCap Advisors LLC boosted its holdings in AES by 158.4% during the second quarter. CoreCap Advisors LLC now owns 6,277 shares of the utilities provider's stock worth $92,000 after purchasing an additional 3,848 shares during the last quarter. 93.13% of the stock is owned by institutional investors.

About AES

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.

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