606,558 Shares in Pinnacle West Capital Corporation $PNW Acquired by Hsbc Holdings PLC

Key Points

• Hsbc Holdings PLC acquired 606,558 shares of Pinnacle West Capital in the second quarter, valued at approximately $65.0 million and representing a 0.50% stake. Institutional investors collectively own 91.51% of the utility.
• Analysts maintain a largely cautious view, with three Buy ratings and twelve Holds producing a consensus “Hold” rating and an average price target of $103.57.
• Pinnacle West reported quarterly EPS of $1.43, slightly below estimates, while revenue rose 7.1% year over year to $1.46 billion. The company declared a quarterly dividend of $0.91 per share, equivalent to a 3.7% annual yield.

Hsbc Holdings PLC purchased a new position in Pinnacle West Capital Corporation (NYSE:PNW - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor purchased 606,558 shares of the utilities provider's stock, valued at approximately $64,952,000. Hsbc Holdings PLC owned 0.50% of Pinnacle West Capital at the end of the most recent reporting period.

A number of other institutional investors have also added to or reduced their stakes in the stock. Barrow Hanley Mewhinney & Strauss LLC purchased a new position in shares of Pinnacle West Capital in the second quarter worth $703,598,000. ATLAS Infrastructure Partners UK Ltd. grew its stake in Pinnacle West Capital by 44.3% during the fourth quarter. ATLAS Infrastructure Partners UK Ltd. now owns 4,461,243 shares of the utilities provider's stock valued at $395,712,000 after acquiring an additional 1,369,350 shares in the last quarter. Invesco Ltd. grew its stake in Pinnacle West Capital by 1.8% during the fourth quarter. Invesco Ltd. now owns 4,249,267 shares of the utilities provider's stock valued at $376,910,000 after acquiring an additional 74,023 shares in the last quarter. Soroban Capital Partners LP increased its holdings in Pinnacle West Capital by 34.0% in the 1st quarter. Soroban Capital Partners LP now owns 3,854,815 shares of the utilities provider's stock valued at $388,373,000 after acquiring an additional 977,411 shares during the last quarter. Finally, Geode Capital Management LLC increased its holdings in Pinnacle West Capital by 0.9% in the 4th quarter. Geode Capital Management LLC now owns 3,095,691 shares of the utilities provider's stock valued at $274,117,000 after acquiring an additional 27,861 shares during the last quarter. 91.51% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other 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 sale, 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 Securities & Exchange Commission, which is available at this link. Also, SVP Jose Luis Esparza, Jr. sold 1,800 shares of Pinnacle West Capital stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $102.01, for a total value of $183,618.00. Following the completion of the transaction, the senior vice president owned 4,910 shares of the company's stock, valued at approximately $500,869.10. This trade represents a 26.83% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.19% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms have commented on PNW. Weiss Ratings reissued a "buy (b)" rating on shares of Pinnacle West Capital in a report on Monday, August 3rd. TD Cowen reaffirmed a "hold" rating on shares of Pinnacle West Capital in a report on Wednesday, August 12th. Morgan Stanley decreased their target price on Pinnacle West Capital from $97.00 to $94.00 and set an "equal weight" rating on the stock in a research report on Friday, August 21st. BMO Capital Markets dropped their price target on 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. Finally, Truist Financial cut their price target on Pinnacle West Capital from $107.00 to $101.00 and set a "hold" rating for the company in a report on Monday, August 17th. Three equities research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. Based on data from MarketBeat.com, Pinnacle West Capital has a consensus rating of "Hold" and an average target price of $103.57.

Pinnacle West Capital Price Performance

Pinnacle West Capital stock opened at $98.68 on Thursday. Pinnacle West Capital Corporation has a 52-week low of $85.32 and a 52-week 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. The firm's fifty day moving average is $103.91 and its 200 day moving average is $101.92. The company has a market cap of $11.96 billion, a price-to-earnings ratio of 18.90, a PEG ratio of 3.57 and a beta of 0.44.

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

Pinnacle West Capital Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Monday, August 3rd will be given a dividend of $0.91 per share. The ex-dividend date is Monday, August 3rd. This represents a $3.64 dividend on an annualized basis and a yield of 3.7%. Pinnacle West Capital's dividend payout ratio is 69.73%.

About Pinnacle West Capital

Pinnacle West Capital Corporation is a publicly traded utility holding company headquartered in Phoenix, Arizona. Through its principal subsidiary, Arizona Public Service Company (APS), Pinnacle West generates, transmits and distributes electricity to more than one million residential, commercial and industrial customers across central and southern Arizona. The company's regulated operations focus on delivering safe, reliable power while meeting evolving environmental standards.

The company's diversified generation portfolio includes natural gas–fired plants, the nuclear-powered Palo Verde Generating Station—the largest nuclear facility in the United States by net output—plus growing investments in solar and battery storage projects.

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