Ameren (NYSE:AEE) Sets New 12-Month High - Should You Buy?

Key Points

• Ameren hit a new 52-week high of $115.59 during mid-day trading and was last near $115.07, with a market capitalization of roughly $31.6 billion.
• Analysts have become more positive — the stock holds a consensus Moderate Buy rating with an average price target of $117.31, and several firms have raised targets into the ~$116–$120 range.
• Ameren raised its quarterly dividend to $0.75 ($3.00 annual), implying a ~2.6% yield and a dividend payout ratio around 56%.

Ameren Corporation (NYSE:AEE - Get Free Report) hit a new 52-week high during mid-day trading on Friday . The stock traded as high as $115.59 and last traded at $115.0720, with a volume of 296340 shares. The stock had previously closed at $113.65.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the company. Argus boosted their price objective on Ameren from $108.00 to $115.00 and gave the stock a "buy" rating in a research report on Monday, March 23rd. Barclays increased their price objective on shares of Ameren from $104.00 to $116.00 and gave the company an "equal weight" rating in a report on Wednesday, April 15th. Wall Street Zen upgraded shares of Ameren from a "sell" rating to a "hold" rating in a report on Saturday, April 25th. Wells Fargo & Company reiterated an "overweight" rating and issued a $120.00 price objective on shares of Ameren in a report on Tuesday, April 21st. Finally, BMO Capital Markets increased their price objective on shares of Ameren from $112.00 to $120.00 and gave the company an "outperform" rating in a report on Friday, February 13th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $117.31.

Ameren Stock Up 0.3%

The stock has a market capitalization of $31.55 billion, a P/E ratio of 21.32, a PEG ratio of 2.26 and a beta of 0.52. The company has a debt-to-equity ratio of 1.35, a current ratio of 0.66 and a quick ratio of 0.46. The stock's fifty day moving average is $111.07 and its two-hundred day moving average is $105.80.

Ameren (NYSE:AEE - Get Free Report) last issued its earnings results on Wednesday, February 11th. The utilities provider reported $0.78 earnings per share for the quarter, topping analysts' consensus estimates of $0.77 by $0.01. The firm had revenue of $1.78 billion during the quarter, compared to analysts' expectations of $1.69 billion. Ameren had a net margin of 16.55% and a return on equity of 10.69%. The firm's revenue for the quarter was down 8.2% compared to the same quarter last year. During the same period last year, the firm posted $0.77 earnings per share. As a group, research analysts predict that Ameren Corporation will post 5.32 earnings per share for the current fiscal year.

Ameren Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Tuesday, March 10th were paid a $0.75 dividend. The ex-dividend date of this dividend was Tuesday, March 10th. This represents a $3.00 dividend on an annualized basis and a yield of 2.6%. This is a positive change from Ameren's previous quarterly dividend of $0.71. Ameren's dividend payout ratio (DPR) is 56.07%.

Insider Buying and Selling

In related news, insider Michael L. Moehn sold 6,500 shares of the firm's stock in a transaction that occurred on Monday, February 2nd. The shares were sold at an average price of $103.60, for a total value of $673,400.00. Following the completion of the transaction, the insider owned 193,076 shares of the company's stock, valued at approximately $20,002,673.60. This trade represents a 3.26% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.29% of the company's stock.

Hedge Funds Weigh In On Ameren

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Caitong International Asset Management Co. Ltd lifted its position in Ameren by 285.5% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 266 shares of the utilities provider's stock worth $28,000 after buying an additional 197 shares in the last quarter. Harel Insurance Investments & Financial Services Ltd. purchased a new stake in Ameren in the 3rd quarter worth approximately $29,000. Garton & Associates Financial Advisors LLC purchased a new stake in Ameren in the 4th quarter worth approximately $29,000. Whittier Trust Co. of Nevada Inc. lifted its position in Ameren by 74.9% in the 1st quarter. Whittier Trust Co. of Nevada Inc. now owns 292 shares of the utilities provider's stock worth $33,000 after buying an additional 125 shares in the last quarter. Finally, Osterweis Capital Management Inc. lifted its position in Ameren by 6,040.0% in the 2nd quarter. Osterweis Capital Management Inc. now owns 307 shares of the utilities provider's stock worth $29,000 after buying an additional 302 shares in the last quarter. Institutional investors and hedge funds own 79.09% of the company's stock.

About Ameren

Ameren Corporation NYSE: AEE is an integrated energy company headquartered in St. Louis, Missouri, that provides electric and natural gas delivery and related services in portions of Missouri and Illinois. The company operates regulated utility businesses that serve a broad mix of residential, commercial and industrial customers, and it participates in wholesale energy markets and transmission operations that support reliable service across its service territories.

Ameren's core activities include generation, transmission and distribution of electricity, distribution of natural gas, and the provision of customer energy solutions such as demand-side management and energy efficiency programs.

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