Amundi Cuts Stock Position in Fortis $FTS

Key Points

• Amundi reduced its Fortis position by 10.2% in the first quarter, selling 87,574 shares and retaining 773,701 shares worth approximately $43.2 million. Institutional investors and hedge funds still own 57.77% of the company.
• Other major institutions, including Royal Bank of Canada, Vanguard, FIL and CIBC World Markets, increased their Fortis holdings, indicating continued institutional support despite Amundi’s reduction.
• Fortis reported quarterly adjusted EPS of $0.56, slightly above expectations, and maintained its $0.64 quarterly dividend, equivalent to a 4.5% annualized yield. Analysts have a consensus “Hold” rating with an average price target of $61.

Amundi lowered its position in shares of Fortis (NYSE:FTS - Free Report) by 10.2% during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 773,701 shares of the utilities provider's stock after selling 87,574 shares during the period. Amundi owned approximately 0.15% of Fortis worth $43,165,000 as of its most recent SEC filing.

A number of other institutional investors have also made changes to their positions in the company. Royal Bank of Canada grew its holdings in Fortis by 4.6% during the 1st quarter. Royal Bank of Canada now owns 35,241,451 shares of the utilities provider's stock valued at $1,966,121,000 after purchasing an additional 1,557,443 shares in the last quarter. Vanguard Group Inc. grew its stake in shares of Fortis by 2.3% during the fourth quarter. Vanguard Group Inc. now owns 24,129,958 shares of the utilities provider's stock valued at $1,254,541,000 after acquiring an additional 536,118 shares in the last quarter. FIL Ltd increased its position in shares of Fortis by 9.1% during the fourth quarter. FIL Ltd now owns 19,898,613 shares of the utilities provider's stock worth $1,034,545,000 after acquiring an additional 1,666,481 shares during the last quarter. Scotia Capital Inc. increased its position in shares of Fortis by 3.7% during the third quarter. Scotia Capital Inc. now owns 9,163,354 shares of the utilities provider's stock worth $461,748,000 after acquiring an additional 326,212 shares during the last quarter. Finally, Cibc World Market Inc. lifted its stake in shares of Fortis by 8.6% in the fourth quarter. Cibc World Market Inc. now owns 8,564,134 shares of the utilities provider's stock worth $445,335,000 after acquiring an additional 677,226 shares in the last quarter. 57.77% of the stock is owned by institutional investors and hedge funds.

Key Fortis News

Here are the key news stories impacting Fortis this week:

• Positive Sentiment: Earnings beat estimates: Fortis reported quarterly EPS of $0.78, up from $0.76 a year earlier and well above the consensus estimate of $0.56 in the company’s earnings release. A separate Zacks report cited adjusted EPS of $0.56 versus a $0.55 consensus, indicating the precise figure varies by accounting measure, but both measures reflected an earnings beat. Fortis earnings conference call
• Positive Sentiment: Tilbury LNG expansion approved: British Columbia approval of FortisBC’s Tilbury LNG expansion improves the outlook for a major infrastructure and growth project, potentially supporting long-term rate-base expansion and utility earnings. Fortis Q2 earnings and Tilbury LNG approval
• Positive Sentiment: Dividend maintained: Fortis declared a quarterly dividend of $0.64 per share, payable September 1 to shareholders of record August 19. The annualized payout implies an approximately 4.5% yield, reinforcing the stock’s appeal to income-focused investors. Fortis third-quarter dividend announcement
• Neutral Sentiment: Profitability remains steady: Fortis reported a 7.25% return on equity and a 14.21% net margin. These metrics support financial stability but do not indicate a material change in operating profitability.
• Negative Sentiment: Leverage and liquidity remain considerations: Fortis has a debt-to-equity ratio of 1.25, a current ratio of 0.49 and a quick ratio of 0.41. Elevated leverage and limited near-term liquidity could weigh on valuation, particularly if interest rates remain high or project costs increase.

Fortis Stock Performance

Shares of FTS opened at $56.93 on Monday. The firm's 50 day moving average is $57.01 and its 200-day moving average is $56.22. The company has a debt-to-equity ratio of 1.25, a current ratio of 0.49 and a quick ratio of 0.41. The stock has a market capitalization of $29.08 billion, a P/E ratio of 23.05 and a beta of 0.43. Fortis has a 12-month low of $48.64 and a 12-month high of $59.40.

Fortis (NYSE:FTS - Get Free Report) last posted its quarterly earnings data on Friday, July 31st. The utilities provider reported $0.56 earnings per share for the quarter, topping the consensus estimate of $0.55 by $0.01. Fortis had a net margin of 14.17% and a return on equity of 7.25%. The firm had revenue of $1.67 billion for the quarter, compared to analysts' expectations of $1.83 billion. During the same period in the previous year, the company posted $0.76 EPS. Equities research analysts anticipate that Fortis will post 2.58 EPS for the current fiscal year.

Fortis Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Wednesday, August 19th will be given a $0.64 dividend. The ex-dividend date is Wednesday, August 19th. This represents a $2.56 dividend on an annualized basis and a yield of 4.5%. Fortis's dividend payout ratio is presently 72.87%.

Analysts Set New Price Targets

A number of research firms have recently weighed in on FTS. Wall Street Zen downgraded shares of Fortis from a "hold" rating to a "sell" rating in a research report on Saturday, May 23rd. TD Securities reiterated a "buy" rating on shares of Fortis in a research note on Thursday, May 7th. Weiss Ratings reiterated a "buy (b)" rating on shares of Fortis in a research note on Friday, July 17th. Barclays decreased their price objective on shares of Fortis from $62.00 to $61.00 and set an "overweight" rating for the company in a report on Friday, May 8th. Finally, Canadian Imperial Bank of Commerce downgraded Fortis from an "outperform" rating to a "hold" rating in a report on Friday, July 17th. Five equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $61.00.

Fortis Profile

Fortis Inc is a Canadian diversified electric and gas utility holding company headquartered in St. John's, Newfoundland and Labrador. Through a portfolio of regulated utility subsidiaries, the company develops, owns and operates electricity and natural gas transmission, distribution and generation assets. Fortis serves customers across multiple jurisdictions in Canada, the United States and the Caribbean, focusing on the delivery of safe, reliable energy to residential, commercial and industrial users.

The company's core activities include operation and maintenance of transmission and distribution networks, ownership of generation facilities, and investment in grid modernization and system resilience.

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