AltaGas (TSE:ALA) Reaches New 1-Year High - Still a Buy?

Key Points

• New 52-week high: AltaGas reached C$50.31 (last C$50.17) and analysts have raised targets, leaving a consensus rating of “Moderate Buy” with a consensus target of C$50.89 (seven Buy ratings, one Sell).
• Dividend increased: AltaGas raised its quarterly dividend to C$0.334 (annualized C$1.34) for a yield of ~2.6% and a dividend payout ratio of 50.8%.
• Mixed fundamentals: Latest quarter showed EPS C$0.77 on C$3.29B revenue, with a market cap of C$15.69B and P/E of 20.33, but a low current ratio (0.82) and high debt-to-equity (118.25) highlight liquidity and leverage considerations.

AltaGas Ltd. (TSE:ALA - Get Free Report)'s stock price hit a new 52-week high on Monday . The stock traded as high as C$50.31 and last traded at C$50.17, with a volume of 55886 shares traded. The stock had previously closed at C$49.82.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on ALA shares. Scotiabank lifted their price target on shares of AltaGas from C$52.00 to C$54.00 and gave the stock an "outperform" rating in a research report on Monday, April 6th. Royal Bank Of Canada lifted their target price on shares of AltaGas from C$48.00 to C$50.00 and gave the stock an "outperform" rating in a report on Monday, March 9th. ATB Cormark Capital Markets lifted their target price on shares of AltaGas from C$52.00 to C$54.00 and gave the stock an "outperform" rating in a report on Thursday. TD Securities lifted their target price on shares of AltaGas from C$48.00 to C$51.00 and gave the stock a "buy" rating in a report on Monday, March 9th. Finally, Jefferies Financial Group lifted their target price on shares of AltaGas from C$49.00 to C$53.00 in a report on Monday, March 9th. Seven research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of C$50.89.

AltaGas Price Performance

The company has a 50 day moving average of C$47.68 and a 200 day moving average of C$44.03. The company has a current ratio of 0.82, a quick ratio of 0.44 and a debt-to-equity ratio of 118.25. The firm has a market cap of C$15.69 billion, a price-to-earnings ratio of 20.33, a P/E/G ratio of -4.97 and a beta of 0.34.

AltaGas (TSE:ALA - Get Free Report) last posted its earnings results on Friday, March 6th. The company reported C$0.77 earnings per share (EPS) for the quarter. The firm had revenue of C$3.29 billion during the quarter. AltaGas had a return on equity of 8.74% and a net margin of 6.14%. Equities research analysts predict that AltaGas Ltd. will post 2.3006093 EPS for the current fiscal year.

AltaGas Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Tuesday, March 31st were paid a dividend of $0.334 per share. This represents a $1.34 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date of this dividend was Monday, March 16th. This is a positive change from AltaGas's previous quarterly dividend of $0.32. AltaGas's dividend payout ratio (DPR) is currently 50.81%.

About AltaGas

AltaGas Ltd owns and operates a diversified basket of energy infrastructure businesses. Business is conducted through four segments: Midstream, power, utilities and corporate. Utility business owns and operates rate-regulated natural gas distribution assets across North America. Midstream business subsequent to the sale of non-core midstream assets in Canada and also engaged in the natural gas liquid processing and extraction, transportation, and storage. Natural gas is sold and purchased for both commercial and industrial users.

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