Morgan Stanley Cuts Pinnacle West Capital (NYSE:PNW) Price Target to $89.00

Key Points

• Morgan Stanley cut Pinnacle West Capital’s price target to $89 from $94 while maintaining an “equal weight” rating, implying 5.46% downside from the prior close.
• Analyst sentiment remains cautious: the stock has a consensus “Hold” rating and an average price target of $104.23, based on three Buy ratings and eleven Holds.
• Pinnacle West reported quarterly EPS of $1.43, missing estimates of $1.46, although revenue rose 7.1% year over year to $1.46 billion; shares later traded at $94.14.

Pinnacle West Capital (NYSE:PNW - Get Free Report) had its target price reduced by equities research analysts at Morgan Stanley from $94.00 to $89.00 in a research report issued to clients and investors on Friday, Benzinga reports. The firm presently has an "equal weight" rating on the utilities provider's stock. Morgan Stanley's price target would indicate a potential downside of 5.46% from the stock's previous close.

A number of other analysts have also recently commented on the company. Weiss Ratings reiterated a "buy (b)" rating on shares of Pinnacle West Capital in a research report on Monday, August 3rd. BMO Capital Markets cut their price target on Pinnacle West Capital from $106.00 to $104.00 and set a "market perform" rating on the stock in a research report on Wednesday, July 22nd. Barclays raised their price objective on shares of Pinnacle West Capital from $102.00 to $108.00 and gave the company an "equal weight" rating in a research note on Wednesday, July 1st. TD Cowen reissued a "hold" rating on shares of Pinnacle West Capital in a research note on Wednesday, August 12th. Finally, Jefferies Financial Group restated a "buy" rating and issued a $129.00 price target on shares of Pinnacle West Capital in a report on Wednesday, July 8th. Three analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $104.23.

Pinnacle West Capital Stock Performance

Shares of Pinnacle West Capital stock traded down $1.45 during midday trading on Friday, hitting $94.14. The company had a trading volume of 396,320 shares, compared to its average volume of 1,202,791. The company has a fifty day simple moving average of $100.87 and a 200 day simple moving average of $101.80. The stock has a market cap of $11.41 billion, a price-to-earnings ratio of 18.04, a PEG ratio of 3.47 and a beta of 0.45. Pinnacle West Capital has a 12-month low of $85.70 and a 12-month high of $111.16. The company has a quick ratio of 0.41, a current ratio of 0.59 and a debt-to-equity ratio of 1.38.

Pinnacle West Capital (NYSE:PNW - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The utilities provider reported $1.43 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.46 by ($0.03). Pinnacle West Capital had a return on equity of 8.99% and a net margin of 11.52%.The firm had revenue of $1.46 billion during the quarter, compared to analyst estimates of $1.40 billion. During the same period in the prior year, the firm earned $1.58 earnings per share. The business's revenue was up 7.1% on a year-over-year basis. Pinnacle West Capital has set its FY 2026 guidance at 4.550-4.750 EPS. As a group, analysts predict that Pinnacle West Capital will post 4.71 earnings per share for the current fiscal year.

Insider Transactions at Pinnacle West Capital

In other news, SVP Jose Luis Esparza, Jr. sold 1,800 shares of Pinnacle West Capital stock in a transaction on Friday, August 7th. The stock was sold at an average price of $102.01, for a total transaction of $183,618.00. Following the transaction, the senior vice president directly owned 4,910 shares in the company, valued at approximately $500,869.10. This trade represents a 26.83% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO Elizabeth A. Blankenship sold 980 shares of the company's stock in a transaction on Monday, August 10th. The shares were sold at an average price of $99.17, for a total value of $97,186.60. Following the completion of the sale, the chief accounting officer owned 10,886 shares of the company's stock, valued at approximately $1,079,564.62. This trade represents a 8.26% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.19% of the company's stock.

Institutional Investors Weigh In On Pinnacle West Capital

Several hedge funds and other institutional investors have recently bought and sold shares of the business. JFS Wealth Advisors LLC lifted its stake in Pinnacle West Capital by 109.6% during the second quarter. JFS Wealth Advisors LLC now owns 241 shares of the utilities provider's stock valued at $26,000 after purchasing an additional 126 shares during the last quarter. Compass Financial Management LLC acquired a new stake in shares of Pinnacle West Capital during the 2nd quarter valued at $33,000. Bell Investment Advisors Inc boosted its stake in shares of Pinnacle West Capital by 144.9% during the 2nd quarter. Bell Investment Advisors Inc now owns 338 shares of the utilities provider's stock worth $36,000 after acquiring an additional 200 shares in the last quarter. Clearstead Advisors LLC grew its holdings in shares of Pinnacle West Capital by 88.5% in the 4th quarter. Clearstead Advisors LLC now owns 394 shares of the utilities provider's stock worth $35,000 after acquiring an additional 185 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd grew its holdings in shares of Pinnacle West Capital by 41,300.0% in the 2nd quarter. Caitong International Asset Management Co. Ltd now owns 414 shares of the utilities provider's stock worth $44,000 after acquiring an additional 413 shares during the last quarter. 91.51% of the stock is currently owned by institutional investors.

About Pinnacle West Capital

Pinnacle West Capital Corporation NYSE: PNW is an energy holding company headquartered in Phoenix, Arizona. Its principal subsidiary, Arizona Public Service Company (APS), is an electric utility that provides power to residential, commercial and industrial customers throughout much of Arizona.

Through APS, Pinnacle West is involved in the generation, transmission and distribution of electricity. Its generation portfolio includes nuclear, natural gas, coal, solar and other renewable energy resources.

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