Algonquin Power & Utilities Corp. (NYSE:AQN) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Analyst sentiment is moderately bullish: Thirteen brokerages collectively rate Algonquin Power & Utilities “Moderate Buy,” with seven buys and six holds. The average 12-month price target is $6.75, above the stock’s reported $5.00 opening price.
• Recent earnings slightly missed expectations: Algonquin reported quarterly EPS of $0.04 versus the $0.05 consensus estimate, while revenue matched expectations at $582.99 million. Analysts expect approximately $0.35 in EPS for the current year.
• The company maintains a high-yield dividend: Algonquin declared a quarterly dividend of $0.065 per share, or $0.26 annualized, representing a 5.2% yield; its payout ratio is elevated at 136.84%.

Shares of Algonquin Power & Utilities Corp. (NYSE:AQN - Get Free Report) have been given a consensus recommendation of "Moderate Buy" by the thirteen brokerages that are covering the company, Marketbeat.com reports. Six equities research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. The average 12 month price target among brokerages that have issued a report on the stock in the last year is $6.75.

Several research analysts have commented on AQN shares. Huntington initiated coverage on shares of Algonquin Power & Utilities in a report on Monday, September 14th. They issued an "outperform" rating and a $7.00 price objective for the company. TD set a $6.00 target price on shares of Algonquin Power & Utilities and gave the company a "hold" rating in a research note on Monday, August 31st. National Bank Financial set a $7.00 price target on shares of Algonquin Power & Utilities and gave the company an "outperform" rating in a research report on Tuesday, September 1st. Finally, Weiss Ratings lowered shares of Algonquin Power & Utilities from a "hold (c)" rating to a "hold (c-)" rating in a report on Tuesday, August 11th.

Algonquin Power & Utilities Price Performance

Shares of AQN stock opened at $5.00 on Friday. The firm has a market cap of $3.85 billion, a P/E ratio of 26.29 and a beta of 0.70. Algonquin Power & Utilities has a fifty-two week low of $4.96 and a fifty-two week high of $7.11. The business's 50 day moving average price is $5.66 and its 200-day moving average price is $5.91. The company has a debt-to-equity ratio of 1.28, a quick ratio of 0.69 and a current ratio of 0.88.

Algonquin Power & Utilities (NYSE:AQN - Get Free Report) last posted its earnings results on Friday, August 7th. The utilities provider reported $0.04 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.05 by ($0.01). Algonquin Power & Utilities had a net margin of 5.77% and a return on equity of 5.16%. The business had revenue of $582.99 million for the quarter, compared to analysts' expectations of $582.99 million. During the same period last year, the firm posted $0.04 earnings per share. Algonquin Power & Utilities has set its FY 2027 guidance at 0.380-0.420 EPS and its FY 2026 guidance at 0.350-0.370 EPS. On average, equities research analysts anticipate that Algonquin Power & Utilities will post 0.35 earnings per share for the current year.

Algonquin Power & Utilities Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Tuesday, September 29th will be paid a $0.0650 dividend. This represents a $0.26 dividend on an annualized basis and a dividend yield of 5.2%. The ex-dividend date is Tuesday, September 29th. Algonquin Power & Utilities's dividend payout ratio (DPR) is presently 136.84%.

Institutional Investors Weigh In On Algonquin Power & Utilities

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Squarepoint Ops LLC raised its position in shares of Algonquin Power & Utilities by 14.8% during the second quarter. Squarepoint Ops LLC now owns 83,196 shares of the utilities provider's stock valued at $488,000 after buying an additional 10,721 shares during the last quarter. Nykredit A S bought a new position in shares of Algonquin Power & Utilities during the second quarter worth $78,000. Amundi grew its stake in Algonquin Power & Utilities by 12.5% during the second quarter. Amundi now owns 174,789 shares of the utilities provider's stock valued at $1,024,000 after acquiring an additional 19,454 shares in the last quarter. HighTower Advisors LLC grew its stake in Algonquin Power & Utilities by 31.8% during the second quarter. HighTower Advisors LLC now owns 32,052 shares of the utilities provider's stock valued at $188,000 after acquiring an additional 7,729 shares in the last quarter. Finally, Greenland Capital Management LP increased its holdings in Algonquin Power & Utilities by 5.0% in the 2nd quarter. Greenland Capital Management LP now owns 975,010 shares of the utilities provider's stock valued at $5,732,000 after acquiring an additional 46,020 shares during the last quarter. 62.28% of the stock is owned by hedge funds and other institutional investors.

About Algonquin Power & Utilities

Algonquin Power & Utilities Corp. is a North American utility and renewable energy company headquartered in Oakville, Ontario. Through its Liberty operating businesses, the company has provided regulated electricity, natural gas, water and wastewater services to residential, commercial and industrial customers.

Algonquin has historically operated regulated utility systems in the United States and Canada, with activities including electricity distribution and transmission, natural gas distribution, and water and wastewater utilities.

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