Algonquin Power & Utilities Corp. (NYSE:AQN) Receives Consensus Recommendation of "Hold" from Brokerages

Key Points

• Shares of Algonquin Power & Utilities have a consensus analyst rating of Hold from 13 brokers (7 hold, 6 buy) with an average 1‑year price target of $6.66, roughly in line with the recent share price (~$6.23).
• The company beat recent quarterly estimates with EPS of $0.06 (vs. $0.05 est.) and revenue of $630.7M (vs. $625.8M est.) and set FY2026 guidance of $0.350–0.370 EPS and FY2027 guidance of $0.380–0.420 EPS.
• Algonquin announced a quarterly dividend of $0.065 (annualized $0.26) for a ~4.2% yield, but the payout ratio is elevated at 113%, which may raise sustainability concerns.

Shares of Algonquin Power & Utilities Corp. (NYSE:AQN - Get Free Report) have been assigned a consensus recommendation of "Hold" from the thirteen analysts that are covering the firm, MarketBeat reports. Seven analysts have rated the stock with a hold recommendation and six have assigned a buy recommendation to the company. The average 1-year price target among brokers that have issued a report on the stock in the last year is $6.6591.

AQN has been the subject of several recent research reports. Raymond James Financial upgraded Algonquin Power & Utilities from a "market perform" rating to an "outperform" rating and increased their price target for the company from $6.50 to $7.25 in a report on Monday, March 9th. National Bank Financial decreased their target price on Algonquin Power & Utilities from $7.50 to $7.25 and set an "outperform" rating for the company in a research report on Monday, March 9th. TD Cowen lowered their target price on Algonquin Power & Utilities from $6.50 to $6.00 and set a "hold" rating for the company in a research note on Monday, March 9th. Barclays started coverage on Algonquin Power & Utilities in a report on Wednesday. They set an "overweight" rating and a $7.00 target price on the stock. Finally, Wall Street Zen cut Algonquin Power & Utilities from a "buy" rating to a "hold" rating in a report on Sunday, March 15th.

Institutional Investors Weigh In On Algonquin Power & Utilities

A number of large investors have recently added to or reduced their stakes in AQN. EdgePoint Investment Group Inc. lifted its holdings in Algonquin Power & Utilities by 32.6% in the 4th quarter. EdgePoint Investment Group Inc. now owns 81,727,385 shares of the utilities provider's stock worth $502,563,000 after buying an additional 20,074,709 shares in the last quarter. Principal Financial Group Inc. bought a new position in Algonquin Power & Utilities during the 4th quarter worth approximately $74,263,000. Norges Bank acquired a new position in shares of Algonquin Power & Utilities in the 4th quarter worth approximately $67,065,000. Ariel Investments LLC increased its holdings in shares of Algonquin Power & Utilities by 88.6% in the 2nd quarter. Ariel Investments LLC now owns 13,112,831 shares of the utilities provider's stock valued at $75,137,000 after acquiring an additional 6,160,490 shares during the last quarter. Finally, Goldman Sachs Group Inc. increased its holdings in shares of Algonquin Power & Utilities by 65.0% in the 1st quarter. Goldman Sachs Group Inc. now owns 12,205,756 shares of the utilities provider's stock valued at $62,738,000 after acquiring an additional 4,808,539 shares during the last quarter. 62.28% of the stock is owned by institutional investors and hedge funds.

Algonquin Power & Utilities Trading Down 0.1%

NYSE AQN opened at $6.23 on Friday. The firm has a market capitalization of $4.79 billion, a price-to-earnings ratio of 27.07 and a beta of 0.78. The company has a debt-to-equity ratio of 1.27, a quick ratio of 0.82 and a current ratio of 1.00. Algonquin Power & Utilities has a one year low of $4.45 and a one year high of $7.11. The company's 50 day moving average price is $6.52 and its 200 day moving average price is $6.15.

Algonquin Power & Utilities (NYSE:AQN - Get Free Report) last released its quarterly earnings data on Friday, March 6th. The utilities provider reported $0.06 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.05 by $0.01. The company had revenue of $630.70 million during the quarter, compared to analyst estimates of $625.77 million. Algonquin Power & Utilities had a net margin of 7.32% and a return on equity of 5.47%. The business's quarterly revenue was up 7.8% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.06 earnings per share. Algonquin Power & Utilities has set its FY 2027 guidance at 0.380-0.420 EPS and its FY 2026 guidance at 0.350-0.370 EPS. On average, sell-side analysts predict that Algonquin Power & Utilities will post 0.38 EPS for the current year.

Algonquin Power & Utilities Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 15th. Stockholders of record on Tuesday, March 31st will be given a dividend of $0.065 per share. This represents a $0.26 dividend on an annualized basis and a dividend yield of 4.2%. The ex-dividend date of this dividend is Tuesday, March 31st. Algonquin Power & Utilities's payout ratio is presently 113.04%.

About Algonquin Power & Utilities

Algonquin Power & Utilities Corp NYSE: AQN is a diversified generation, transmission and distribution utility company headquartered in Oakville, Ontario. Established in 1988, the firm operates through two primary business segments: Regulated Utilities and Renewable Energy. Its Regulated Utilities segment comprises electric, natural gas and water distribution networks serving residential, commercial and industrial customers across North America, while its Renewable Energy portfolio includes hydroelectric, solar, wind and thermal generation facilities.

The company's renewable energy assets span multiple jurisdictions in Canada and the United States, reflecting its strategy to expand clean power capacity in regions with supportive regulatory frameworks.

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