Canada Pension Plan Investment Board Buys New Shares in Fortis $FTS

Key Points

• Canada Pension Plan Investment Board acquired 3.1 million Fortis shares worth approximately $177.7 million, giving it a 0.61% stake. Institutional investors and hedge funds collectively own 57.77% of the utility company.
• Analysts maintain a generally cautious outlook, with Fortis receiving an average “Hold” rating and a consensus price target of $66.33; ratings include three Buys and five Holds.
• Fortis reported quarterly EPS of $0.56, slightly above estimates, while revenue of $1.67 billion missed forecasts. The company declared a quarterly dividend of $0.64, equivalent to a 4.6% yield and $2.56 annualized.

Canada Pension Plan Investment Board purchased a new stake in shares of Fortis (NYSE:FTS - Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor purchased 3,104,158 shares of the utilities provider's stock, valued at approximately $177,656,000. Canada Pension Plan Investment Board owned about 0.61% of Fortis at the end of the most recent quarter.

A number of other large investors have also recently bought and sold shares of FTS. Trust Co. of Vermont bought a new position in shares of Fortis in the 2nd quarter worth about $26,000. Scarborough Advisors LLC bought a new stake in shares of Fortis during the 1st quarter valued at about $29,000. Aberdeen Wealth Management LLC acquired a new stake in Fortis during the second quarter worth approximately $31,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC acquired a new stake in Fortis during the fourth quarter worth approximately $34,000. Finally, Towarzystwo Funduszy Inwestycyjnych PZU SA increased its holdings in Fortis by 157.4% in the third quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 700 shares of the utilities provider's stock worth $36,000 after purchasing an additional 428 shares in the last quarter. 57.77% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on FTS. Barclays cut their price target on Fortis from $61.00 to $60.00 and set an "overweight" rating on the stock in a report on Monday, August 3rd. Canadian Imperial Bank of Commerce lowered shares of Fortis from an "outperform" rating to a "hold" rating in a research note on Friday, July 17th. TD Securities reiterated a "buy" rating on shares of Fortis in a research report on Tuesday, August 4th. Royal Bank Of Canada increased their target price on shares of Fortis from $80.00 to $89.00 and gave the stock a "sector perform" rating in a research note on Monday, August 3rd. Finally, Scotiabank restated a "sector perform" rating on shares of Fortis in a report on Tuesday, August 4th. Three investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Hold" and a consensus price target of $66.33.

Fortis Stock Performance

Shares of FTS opened at $55.33 on Thursday. The company has a debt-to-equity ratio of 1.27, a quick ratio of 0.47 and a current ratio of 0.56. The stock has a 50 day moving average price of $57.02 and a two-hundred day moving average price of $56.62. The firm has a market capitalization of $28.27 billion, a P/E ratio of 22.40 and a beta of 0.43. Fortis has a 52 week low of $48.64 and a 52 week high of $59.40.

Fortis (NYSE:FTS - Get Free Report) last posted its earnings results on Friday, July 31st. The utilities provider reported $0.56 earnings per share for the quarter, beating analysts' consensus estimates of $0.55 by $0.01. The company had revenue of $1.67 billion for the quarter, compared to analyst estimates of $1.83 billion. Fortis had a return on equity of 7.16% and a net margin of 14.17%.During the same quarter last year, the company earned $0.76 earnings per share. Equities analysts forecast that Fortis will post 2.56 earnings per share for the current fiscal year.

Fortis Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Wednesday, August 19th will be paid a $0.64 dividend. The ex-dividend date is Wednesday, August 19th. This represents a $2.56 annualized dividend and a dividend yield of 4.6%. Fortis's dividend payout ratio is presently 73.68%.

Fortis Company 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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