Fortis (NYSE:FTS) Stock Gets Downgrade from Raymond James Financial

Key Points

• Raymond James downgraded Fortis from “moderate buy” to “hold.” Analysts overall also rate the stock “Hold,” with an average price target of $65.
• Fortis reported quarterly EPS of $0.66, beating the $0.63 consensus estimate, but revenue of $2.12 billion fell short of analysts’ $2.27 billion forecast.
• Fortis increased its quarterly dividend by 3.9% to C$0.67 per share and outlined a new five-year capital outlook.

Fortis (NYSE:FTS - Get Free Report) was downgraded by equities research analysts at Raymond James Financial from a "moderate buy" rating to a "hold" rating in a research report issued on Wednesday, Zacks reports.

Other equities research analysts have also recently issued research reports about the company. BMO Capital Markets restated a "market perform" rating on shares of Fortis in a research note on Monday, August 3rd. Wolfe Research set a $50.00 price objective on shares of Fortis in a research report on Tuesday, August 4th. TD Securities restated a "buy" rating on shares of Fortis in a research report on Tuesday, August 4th. Barclays reduced their target price on shares of Fortis from $60.00 to $56.00 and set an "overweight" rating for the company in a research note on Tuesday, September 29th. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of Fortis in a report on Thursday, October 15th. Three investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $65.00.

Fortis Stock Performance

Shares of FTS stock opened at $60.93 on Wednesday. The stock's 50-day moving average price is $55.04 and its 200 day moving average price is $55.99. The company has a quick ratio of 0.47, a current ratio of 0.56 and a debt-to-equity ratio of 1.27. The stock has a market capitalization of $31.43 billion, a PE ratio of 23.99 and a beta of 0.42. Fortis has a 52-week low of $49.99 and a 52-week high of $60.98.

Fortis (NYSE:FTS - Get Free Report) last posted its quarterly earnings data on Tuesday, November 3rd. The utilities provider reported $0.66 earnings per share for the quarter, topping analysts' consensus estimates of $0.63 by $0.03. Fortis had a return on equity of 7.46% and a net margin of 14.66%. The company had revenue of $2.12 billion during the quarter, compared to analysts' expectations of $2.27 billion. As a group, equities research analysts forecast that Fortis will post 2.56 EPS for the current year.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Royal Bank of Canada grew its position in Fortis by 4.6% in the first quarter. Royal Bank of Canada now owns 35,241,451 shares of the utilities provider's stock valued at $1,966,121,000 after acquiring an additional 1,557,443 shares in the last quarter. TD Waterhouse Canada Inc. raised its stake in shares of Fortis by 0.7% during the third quarter. TD Waterhouse Canada Inc. now owns 9,504,530 shares of the utilities provider's stock valued at $502,562,000 after purchasing an additional 68,504 shares during the period. Cibc World Market Inc. acquired a new position in shares of Fortis during the second quarter worth $442,633,000. Legal & General Group Plc acquired a new position in shares of Fortis during the second quarter worth $334,727,000. Finally, Connor Clark & Lunn Investment Management Ltd. acquired a new position in shares of Fortis during the second quarter worth $311,146,000. Hedge funds and other institutional investors own 57.77% of the company's stock.

More Fortis News

Here are the key news stories impacting Fortis this week:

• Positive Sentiment: Fortis earned $0.66 per share, above the $0.63 consensus and up from $0.59 a year earlier. The earnings call also highlighted record growth investment and a new five-year capital outlook. Fortis Earnings Call Highlights Record Growth Investment
• Positive Sentiment: The company raised its quarterly dividend 3.9% to C$0.67 per share, equivalent to an indicated annual yield of about 4.5%. The dividend increase may appeal to income-focused investors. Fortis Q3 results, capital outlook and dividend announcement
• Negative Sentiment: Quarterly revenue of $2.12 billion was below analysts’ $2.27 billion estimate, tempering the positive earnings surprise. Fortis Q3 earnings and revenue report

Fortis Company Profile

Fortis Inc is a Canadian utility holding company that owns and operates regulated electric and natural gas utilities. Its businesses are primarily focused on the transmission and distribution of electricity, natural gas distribution, and related energy infrastructure.

Through its portfolio of utility subsidiaries, Fortis serves customers across Canada and the United States, with additional operations in the Caribbean. Its businesses include electric utilities, natural gas utilities, and electric transmission assets, providing essential energy services to residential, commercial, and industrial customers.

Fortis has expanded from its Canadian utility origins through acquisitions and investments in regulated infrastructure.

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