Hsbc Holdings PLC Lowers Holdings in The AES Corporation $AES

Key Points

• Hsbc Holdings PLC cut its AES stake by 20.5% in the second quarter, selling 486,346 shares and retaining 1.88 million shares valued at approximately $27.6 million. Institutional investors collectively own 93.13% of AES.
• AES exceeded quarterly expectations, reporting $0.60 in earnings per share versus the $0.45 consensus estimate and revenue of $3.42 billion, above the $3.11 billion forecast.
• AES pays a quarterly dividend of $0.176, equivalent to about $0.70 annually and a 4.8% yield. Analysts maintain a consensus “Hold” rating with an average price target of $15.71, compared with the stock’s reported price of $14.81.

Hsbc Holdings PLC trimmed its stake in The AES Corporation (NYSE:AES - Free Report) by 20.5% during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 1,882,234 shares of the utilities provider's stock after selling 486,346 shares during the quarter. Hsbc Holdings PLC owned 0.26% of AES worth $27,586,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently modified their holdings of the stock. Root Financial Partners LLC boosted its stake in AES by 259.9% in the 1st quarter. Root Financial Partners LLC now owns 2,822 shares of the utilities provider's stock worth $40,000 after purchasing an additional 2,038 shares in the last quarter. Burnham & Co LLC bought a new stake in AES during the 2nd quarter valued at about $44,000. Los Angeles Capital Management LLC purchased a new position in AES in the fourth quarter worth about $42,000. EverSource Wealth Advisors LLC grew its holdings in shares of AES by 61.0% during the first quarter. EverSource Wealth Advisors LLC now owns 5,296 shares of the utilities provider's stock valued at $75,000 after buying an additional 2,006 shares during the last quarter. Finally, Sound Income Strategies LLC bought a new stake in shares of AES during the first quarter valued at approximately $78,000. 93.13% of the stock is currently owned by institutional investors.

AES Stock Performance

Shares of NYSE AES opened at $14.81 on Wednesday. The company has a quick ratio of 0.67, a current ratio of 0.75 and a debt-to-equity ratio of 2.93. The firm's 50-day moving average price is $14.75 and its 200-day moving average price is $14.65. The AES Corporation has a 52-week low of $12.33 and a 52-week high of $17.65. The company has a market cap of $10.57 billion, a PE ratio of 5.65 and a beta of 0.97.

AES (NYSE:AES - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The utilities provider reported $0.60 earnings per share for the quarter, beating analysts' consensus estimates of $0.45 by $0.15. AES had a net margin of 14.30% and a return on equity of 20.69%. The company had revenue of $3.42 billion for the quarter, compared to the consensus estimate of $3.11 billion. As a group, analysts anticipate that The AES Corporation will post 2.23 EPS for the current year.

AES Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, August 14th. Stockholders of record on Friday, July 31st were paid a $0.176 dividend. This represents a $0.70 dividend on an annualized basis and a dividend yield of 4.8%. The ex-dividend date was Friday, July 31st. AES's dividend payout ratio (DPR) is 26.72%.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings upgraded AES from a "hold (c)" rating to a "hold (c+)" rating in a research note on Monday, August 17th. Eight analysts have rated the stock with a Hold rating, According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $15.71.

AES Profile

AES Corporation is a global energy company focused on the generation and distribution of electricity across diversified markets. Headquartered in Arlington, Virginia, AES develops, builds and operates power plants and distribution systems that serve residential, industrial and commercial customers. The company's portfolio includes thermal, renewable and battery energy storage facilities designed to deliver reliable and sustainable electricity solutions.

Through its subsidiaries, AES operates a balanced mix of power generation assets, including natural gas, coal and renewables such as solar and wind.

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