Pinnacle West Capital (NYSE:PNW) Downgraded by Wall Street Zen to Sell

Key Points

• Wall Street Zen downgraded Pinnacle West Capital from “hold” to “sell.” Despite the downgrade, the broader analyst consensus remains “hold,” with a $103.77 average price target.
• Pinnacle West reported quarterly earnings of $3.49 per share, above the $3.32 consensus estimate, while revenue rose 8.3% year over year to $1.97 billion.
• The stock opened at $104.11, within its 52-week range of $86.18 to $111.16. Institutional investors own 91.51% of its shares.

Pinnacle West Capital (NYSE:PNW - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

Other research analysts also recently issued reports about the stock. HSBC started coverage on shares of Pinnacle West Capital in a research report on Thursday, October 22nd. They issued a "buy" rating and a $119.50 price target on the stock. Mizuho set a $109.00 price target on Pinnacle West Capital in a research note on Tuesday. BMO Capital Markets cut their target price on shares of Pinnacle West Capital from $106.00 to $104.00 and set a "market perform" rating for the company in a research note on Wednesday, July 22nd. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Pinnacle West Capital in a research note on Friday, October 30th. Finally, Jefferies Financial Group decreased their price target on Pinnacle West Capital from $129.00 to $109.00 and set a "buy" rating for the company in a report on Monday, October 5th. Five analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $103.77.

Pinnacle West Capital Price Performance

Pinnacle West Capital stock opened at $104.11 on Friday. The company has a market cap of $12.62 billion, a price-to-earnings ratio of 20.30, a PEG ratio of 3.79 and a beta of 0.48. Pinnacle West Capital has a 1 year low of $86.18 and a 1 year high of $111.16. The firm has a 50 day moving average price of $99.05 and a 200 day moving average price of $100.63. The company has a debt-to-equity ratio of 1.38, a quick ratio of 0.41 and a current ratio of 0.59.

Pinnacle West Capital (NYSE:PNW - Get Free Report) last announced its quarterly earnings results on Tuesday, November 3rd. The utilities provider reported $3.49 EPS for the quarter, beating the consensus estimate of $3.32 by $0.17. Pinnacle West Capital had a return on equity of 8.99% and a net margin of 11.52%. The business had revenue of $1.97 billion during the quarter, compared to analysts' expectations of $1.90 billion. During the same quarter in the previous year, the business posted $3.39 EPS. The firm's quarterly revenue was up 8.3% compared to the same quarter last year. Sell-side analysts predict that Pinnacle West Capital will post 4.91 earnings per share for the current year.

Insiders Place Their Bets

In related news, CAO Elizabeth Blankenship sold 980 shares of the stock in a transaction on Monday, August 10th. The stock was sold at an average price of $99.17, for a total value of $97,186.60. Following the sale, the chief accounting officer owned 10,886 shares in the company, valued at approximately $1,079,564.62. This represents a 8.26% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.19% of the company's stock.

Hedge Funds Weigh In On Pinnacle West Capital

A number of institutional investors and hedge funds have recently modified their holdings of PNW. Aberdeen Group plc raised its holdings in Pinnacle West Capital by 4,435.5% during the third quarter. Aberdeen Group plc now owns 234,078 shares of the utilities provider's stock worth $21,779,000 after purchasing an additional 228,917 shares during the last quarter. Allworth Financial LP boosted its holdings in shares of Pinnacle West Capital by 17.9% in the 3rd quarter. Allworth Financial LP now owns 1,689 shares of the utilities provider's stock valued at $157,000 after buying an additional 257 shares during the last quarter. Russell Investments Group Ltd. lifted its stake in Pinnacle West Capital by 88.8% in the 3rd quarter. Russell Investments Group Ltd. now owns 131,372 shares of the utilities provider's stock valued at $12,230,000 after purchasing an additional 61,798 shares during the last quarter. Maryland State Retirement & Pension System lifted its holdings in shares of Pinnacle West Capital by 28.6% in the third quarter. Maryland State Retirement & Pension System now owns 8,089 shares of the utilities provider's stock valued at $753,000 after purchasing an additional 1,797 shares in the last quarter. Finally, Jefferies Financial Group Inc. grew its position in Pinnacle West Capital by 79.4% in the third quarter. Jefferies Financial Group Inc. now owns 32,295 shares of the utilities provider's stock worth $3,005,000 after acquiring an additional 14,292 shares in the last quarter. 91.51% of the stock is currently owned by hedge funds and other institutional investors.

Pinnacle West Capital Company Profile

Pinnacle West Capital Corporation NYSE: PNW is an energy holding company based in Phoenix, Arizona. Its principal subsidiary, Arizona Public Service Company (APS), is an electric utility that generates, transmits and distributes electricity to customers across Arizona.

APS serves residential, commercial, industrial and governmental customers through a diverse power portfolio that includes nuclear, natural gas, coal, solar and other renewable energy resources. The utility is also involved in maintaining and expanding the electric grid, supporting energy-efficiency programs and developing cleaner energy resources.

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