Pinnacle West Capital (NYSE:PNW) Stock Rated Buy in New Coverage at HSBC

Key Points

• HSBC initiated coverage of Pinnacle West Capital with a “Buy” rating and a $119.50 price target, implying approximately 15% upside from the prior close.
• Analyst sentiment remains mixed: five analysts rate the stock a Buy and eleven rate it Hold, producing an overall “Hold” consensus and average price target of $103.39.
• Pinnacle West’s latest quarterly EPS of $1.43 missed estimates of $1.46, although revenue rose 7.1% year over year to $1.46 billion; institutional investors own 91.51% of the company.

Investment analysts at HSBC assumed coverage on shares of Pinnacle West Capital (NYSE:PNW - Get Free Report) in a research note issued to investors on Thursday, MarketBeat reports. The firm set a "buy" rating and a $119.50 price target on the utilities provider's stock. HSBC's price objective points to a potential upside of 14.96% from the stock's previous close.

PNW has been the topic of several other research reports. TD Cowen reaffirmed a "hold" rating on shares of Pinnacle West Capital in a report on Wednesday, August 12th. Barclays cut their price target on shares of Pinnacle West Capital from $108.00 to $94.00 and set an "equal weight" rating for the company in a report on Thursday, October 1st. Wall Street Zen upgraded shares of Pinnacle West Capital from a "sell" rating to a "hold" rating in a research report on Saturday, October 3rd. Citigroup reaffirmed a "neutral" rating on shares of Pinnacle West Capital in a report on Thursday, October 8th. Finally, Jefferies Financial Group lowered their price objective on Pinnacle West Capital from $129.00 to $109.00 and set a "buy" rating on the stock in a report on Monday, October 5th. Five equities research analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and an average target price of $103.39.

Pinnacle West Capital Stock Up 1.0%

Pinnacle West Capital stock opened at $103.95 on Thursday. Pinnacle West Capital has a twelve month low of $86.18 and a twelve month high of $111.16. The stock has a 50 day moving average of $97.43 and a two-hundred day moving average of $101.17. The company has a current ratio of 0.59, a quick ratio of 0.41 and a debt-to-equity ratio of 1.38. The stock has a market capitalization of $12.60 billion, a price-to-earnings ratio of 19.91, a PEG ratio of 3.69 and a beta of 0.43.

Pinnacle West Capital (NYSE:PNW - Get Free Report) last released its 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 net margin of 11.52% and a return on equity of 8.99%. The company had revenue of $1.46 billion during the quarter, compared to analyst estimates of $1.40 billion. During the same period in the previous year, the firm posted $1.58 EPS. The company's revenue for the quarter 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, research analysts expect that Pinnacle West Capital will post 4.80 earnings per share for the current year.

Insider Transactions at Pinnacle West Capital

In related news, CAO Elizabeth A. Blankenship sold 980 shares of the firm's stock in a transaction that occurred 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 completion of the transaction, the chief accounting officer directly owned 10,886 shares of the company's stock, valued at $1,079,564.62. This trade represents a 8.26% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, SVP Jose Luis Esparza, Jr. sold 1,800 shares of the company's stock in a transaction on Friday, August 7th. The shares were sold at an average price of $102.01, for a total value of $183,618.00. Following the completion of the sale, the senior vice president directly owned 4,910 shares in the company, valued at $500,869.10. This trade represents a 26.83% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 0.19% of the company's stock.

Hedge Funds Weigh In On Pinnacle West Capital

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Banque Pictet & Cie SA purchased a new position in shares of Pinnacle West Capital during the third quarter valued at approximately $1,635,000. V Square Quantitative Management LLC grew its stake in Pinnacle West Capital by 23.8% in the 3rd quarter. V Square Quantitative Management LLC now owns 3,986 shares of the utilities provider's stock worth $371,000 after acquiring an additional 765 shares during the period. Envestnet Asset Management Inc. grew its stake in Pinnacle West Capital by 0.4% in the 2nd quarter. Envestnet Asset Management Inc. now owns 201,227 shares of the utilities provider's stock worth $21,531,000 after acquiring an additional 818 shares during the period. The Manufacturers Life Insurance Company raised its holdings in Pinnacle West Capital by 2.1% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 248,651 shares of the utilities provider's stock valued at $26,606,000 after acquiring an additional 5,199 shares during the last quarter. Finally, Sequoia Financial Advisors LLC raised its holdings in Pinnacle West Capital by 45.2% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 14,841 shares of the utilities provider's stock valued at $1,588,000 after acquiring an additional 4,620 shares during the last quarter. Institutional investors and hedge funds own 91.51% of the company's stock.

About Pinnacle West Capital

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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