Fortis $FTS Shares Sold by Public Employees Retirement System of Ohio

Key Points

• Ohio’s public employee pension fund cut its Fortis stake by 56.5% in the first quarter, selling 53,755 shares and retaining 41,317 shares valued at approximately $2.3 million. Institutional investors and hedge funds collectively own 57.77% of the company.
• Fortis reported an earnings beat, with adjusted quarterly EPS of $0.56 versus a $0.55 consensus estimate, though revenue of $1.67 billion fell short of the $1.83 billion forecast. British Columbia’s approval of the Tilbury LNG expansion provides a potential long-term growth catalyst.
• The company maintained its quarterly dividend at $0.64 per share, implying an annualized yield of about 4.5%. Analyst sentiment remains mixed, with an overall “Hold” consensus and a $61 price target, while leverage and limited liquidity remain risks.

Public Employees Retirement System of Ohio lowered its holdings in Fortis (NYSE:FTS - Free Report) by 56.5% in the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 41,317 shares of the utilities provider's stock after selling 53,755 shares during the period. Public Employees Retirement System of Ohio's holdings in Fortis were worth $2,297,000 as of its most recent SEC filing.

Other hedge funds have also recently added to or reduced their stakes in the company. Scarborough Advisors LLC purchased a new stake in Fortis in the 1st quarter valued at about $29,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC acquired a new stake in shares of Fortis in the fourth quarter worth approximately $34,000. Towarzystwo Funduszy Inwestycyjnych PZU SA boosted its position in shares of 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 acquiring an additional 428 shares during the last quarter. Larson Financial Group LLC grew its holdings in Fortis by 123.9% in the third quarter. Larson Financial Group LLC now owns 739 shares of the utilities provider's stock valued at $37,000 after purchasing an additional 409 shares during the period. Finally, LOM Asset Management Ltd purchased a new stake in Fortis in the fourth quarter valued at approximately $43,000. 57.77% of the stock is owned by institutional investors and hedge funds.

More 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.

Analyst Ratings Changes

FTS has been the topic of a number of recent analyst reports. Barclays cut their price target on shares of Fortis from $62.00 to $61.00 and set an "overweight" rating on the stock in a research note on Friday, May 8th. BMO Capital Markets restated a "market perform" rating on shares of Fortis in a research note on Thursday, May 7th. Wall Street Zen lowered Fortis from a "hold" rating to a "sell" rating in a research note on Saturday, May 23rd. Weiss Ratings reiterated a "buy (b)" rating on shares of Fortis in a report on Friday, July 17th. Finally, Canadian Imperial Bank of Commerce downgraded shares of Fortis from an "outperform" rating to a "hold" rating in a research report on Friday, July 17th. Five research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $61.00.

Fortis Stock Performance

Shares of NYSE:FTS opened at $56.93 on Friday. The company has a market cap of $29.08 billion, a P/E ratio of 23.05 and a beta of 0.43. The company has a debt-to-equity ratio of 1.25, a quick ratio of 0.41 and a current ratio of 0.49. Fortis has a one year low of $48.64 and a one year high of $59.40. The business's 50-day simple moving average is $57.01 and its 200 day simple moving average is $56.19.

Fortis (NYSE:FTS - Get Free Report) last released its quarterly earnings results on Friday, July 31st. The utilities provider reported $0.56 EPS for the quarter, topping the consensus estimate of $0.55 by $0.01. Fortis had a return on equity of 7.25% and a net margin of 14.21%.The firm had revenue of $1.67 billion for the quarter, compared to analyst estimates of $1.83 billion. During the same period in the previous year, the company posted $0.76 EPS. On average, sell-side analysts forecast that Fortis will post 2.58 earnings per share for the current fiscal year.

Fortis Dividend Announcement

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 given a dividend of $0.64 per share. This represents a $2.56 dividend on an annualized basis and a dividend yield of 4.5%. The ex-dividend date of this dividend is Wednesday, August 19th. Fortis's payout ratio is presently 76.83%.

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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