Pinnacle West Capital Corporation (PNW) - What Are Researchers Saying About This Stock?

Key Points

• Analysts have a consensus “Hold” rating on Pinnacle West, with 10 of 15 analysts rating it Hold and five rating it Buy; the average one-year price target is $103.77.
• The company beat quarterly expectations, reporting earnings of $3.49 per share and revenue of $1.97 billion; revenue rose 8.3% year over year.
• Pinnacle West raised its quarterly dividend from $0.91 to $0.925 per share, equivalent to $3.70 annually and a yield of about 3.4%.

Shares of Pinnacle West Capital Corporation (NYSE:PNW - Get Free Report) have earned a consensus recommendation of "Hold" from the fifteen analysts that are presently covering the firm, Marketbeat reports. Ten research analysts have rated the stock with a hold recommendation and five have assigned a buy recommendation to the company. The average 1 year price objective among brokerages that have issued a report on the stock in the last year is $103.77.

A number of research firms recently commented on PNW. Barclays lowered their price target on Pinnacle West Capital from $108.00 to $94.00 and set an "equal weight" rating for the company in a research report on Thursday, October 1st. Morgan Stanley raised their price objective on Pinnacle West Capital from $89.00 to $91.00 and gave the company an "equal weight" rating in a research note on Wednesday, October 21st. Citigroup reaffirmed a "neutral" rating on shares of Pinnacle West Capital in a report on Thursday, October 8th. Mizuho set a $109.00 target price on shares of Pinnacle West Capital in a research note on Tuesday, November 3rd. Finally, Weiss Ratings reiterated a "buy (b)" rating on shares of Pinnacle West Capital in a report on Friday, October 30th.

Institutional Investors Weigh In On Pinnacle West Capital

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Advisors Asset Management Inc. purchased a new stake in shares of Pinnacle West Capital during the third quarter valued at approximately $4,244,000. Checchi Capital Advisers LLC grew its position in Pinnacle West Capital by 11.0% during the third quarter. Checchi Capital Advisers LLC now owns 2,258 shares of the utilities provider's stock valued at $210,000 after buying an additional 224 shares during the period. Voya Investment Management LLC grew its position in Pinnacle West Capital by 0.9% during the third quarter. Voya Investment Management LLC now owns 28,472 shares of the utilities provider's stock valued at $2,649,000 after buying an additional 245 shares during the period. Rothschild Investment LLC increased its holdings in Pinnacle West Capital by 1.3% during the third quarter. Rothschild Investment LLC now owns 26,726 shares of the utilities provider's stock worth $2,487,000 after buying an additional 348 shares during the last quarter. Finally, Cibc World Market Inc. purchased a new stake in Pinnacle West Capital during the third quarter worth about $4,485,000. Hedge funds and other institutional investors own 91.51% of the company's stock.

Pinnacle West Capital Stock Performance

NYSE PNW opened at $107.91 on Thursday. The company has a market cap of $13.08 billion, a P/E ratio of 20.28, a PEG ratio of 3.70 and a beta of 0.48. The company has a fifty day simple moving average of $99.57 and a 200 day simple moving average of $100.84. The company has a current ratio of 0.71, a quick ratio of 0.50 and a debt-to-equity ratio of 1.35. Pinnacle West Capital has a 12-month low of $86.18 and a 12-month high of $111.16.

Pinnacle West Capital (NYSE:PNW - Get Free Report) last posted its earnings results on Tuesday, November 3rd. The utilities provider reported $3.49 earnings per share for the quarter, topping analysts' consensus estimates of $3.32 by $0.17. The company had revenue of $1.97 billion for the quarter, compared to analyst estimates of $1.90 billion. Pinnacle West Capital had a net margin of 11.59% and a return on equity of 9.18%. The firm's revenue was up 8.3% compared to the same quarter last year. During the same quarter in the prior year, the business posted $3.39 EPS. Sell-side analysts predict that Pinnacle West Capital will post 4.92 earnings per share for the current fiscal year.

Pinnacle West Capital Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Monday, November 2nd will be issued a dividend of $0.9250 per share. This represents a $3.70 annualized dividend and a yield of 3.4%. This is a boost from Pinnacle West Capital's previous quarterly dividend of $0.91. The ex-dividend date is Monday, November 2nd. Pinnacle West Capital's dividend payout ratio is presently 69.55%.

About Pinnacle West Capital

Pinnacle West Capital Corporation is an energy holding company whose principal subsidiary, Arizona Public Service Company (APS), provides electric service in Arizona. APS generates, transmits and distributes electricity to residential, commercial and industrial customers. APS serves communities across central and northern Arizona, including the Phoenix metropolitan area. Its electricity supply comes from a mix of generating resources, including nuclear, natural gas, coal and renewable energy. Pinnacle West became the parent company of APS in 1985.

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