Hsbc Holdings PLC Cuts Position in Pinnacle West Capital Corporation $PNW

Key Points

• Hsbc Holdings PLC reduced its investment in Pinnacle West Capital by 28.6%, selling 159,038 shares and retaining 397,856 shares valued at approximately $37.86 million.
• Multiple institutional investors have also made moves; notable changes include Brooklyn Investment Group increasing its holdings by 440% during the same quarter.
• Pinnacle West Capital recently declared a quarterly dividend of $0.895, with an annualized dividend yield of 3.9%, reflecting a payout ratio of 73.81%.

Hsbc Holdings PLC decreased its position in Pinnacle West Capital Corporation (NYSE:PNW - Free Report) by 28.6% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 397,856 shares of the utilities provider's stock after selling 159,038 shares during the quarter. Hsbc Holdings PLC owned approximately 0.33% of Pinnacle West Capital worth $37,861,000 at the end of the most recent quarter.

A number of other hedge funds have also recently modified their holdings of PNW. Exchange Traded Concepts LLC increased its stake in shares of Pinnacle West Capital by 1.3% in the first quarter. Exchange Traded Concepts LLC now owns 9,724 shares of the utilities provider's stock worth $926,000 after purchasing an additional 125 shares in the last quarter. Allworth Financial LP grew its stake in shares of Pinnacle West Capital by 19.1% in the 1st quarter. Allworth Financial LP now owns 780 shares of the utilities provider's stock worth $74,000 after buying an additional 125 shares in the last quarter. AE Wealth Management LLC grew its stake in shares of Pinnacle West Capital by 4.9% in the 1st quarter. AE Wealth Management LLC now owns 2,929 shares of the utilities provider's stock worth $279,000 after buying an additional 137 shares in the last quarter. IFP Advisors Inc lifted its holdings in shares of Pinnacle West Capital by 4.0% in the 1st quarter. IFP Advisors Inc now owns 4,062 shares of the utilities provider's stock valued at $387,000 after acquiring an additional 156 shares during the last quarter. Finally, Probity Advisors Inc. lifted its holdings in shares of Pinnacle West Capital by 2.6% in the 1st quarter. Probity Advisors Inc. now owns 6,214 shares of the utilities provider's stock valued at $592,000 after acquiring an additional 158 shares during the last quarter. Hedge funds and other institutional investors own 91.51% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on PNW. LADENBURG THALM/SH SH upgraded shares of Pinnacle West Capital to a "hold" rating in a report on Friday, May 9th. Wells Fargo & Company boosted their price objective on shares of Pinnacle West Capital from $95.00 to $98.00 and gave the stock an "equal weight" rating in a research note on Friday, May 2nd. Barclays dropped their target price on shares of Pinnacle West Capital from $94.00 to $93.00 and set an "equal weight" rating on the stock in a research report on Wednesday, August 13th. UBS Group reaffirmed a "neutral" rating and issued a $98.00 price objective (up from $96.00) on shares of Pinnacle West Capital in a report on Friday, July 11th. Finally, BMO Capital Markets raised their target price on Pinnacle West Capital from $96.00 to $98.00 and gave the stock a "market perform" rating in a report on Thursday, August 7th. Three research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $97.00.

Pinnacle West Capital Trading Down 1.4%

Shares of PNW traded down $1.3220 during trading on Monday, reaching $90.0280. 783,492 shares of the company traded hands, compared to its average volume of 1,149,685. The stock has a 50-day simple moving average of $90.90 and a 200-day simple moving average of $91.51. The company has a quick ratio of 0.37, a current ratio of 0.52 and a debt-to-equity ratio of 1.25. Pinnacle West Capital Corporation has a twelve month low of $81.47 and a twelve month high of $96.50. The stock has a market cap of $10.75 billion, a PE ratio of 18.56, a price-to-earnings-growth ratio of 9.43 and a beta of 0.38.

Pinnacle West Capital (NYSE:PNW - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The utilities provider reported $1.58 EPS for the quarter, meeting the consensus estimate of $1.58. Pinnacle West Capital had a net margin of 10.96% and a return on equity of 8.45%. The business had revenue of $1.36 billion during the quarter, compared to analyst estimates of $1.35 billion. During the same quarter last year, the firm posted $1.76 earnings per share. The business's revenue for the quarter was up 3.8% compared to the same quarter last year. On average, analysts anticipate that Pinnacle West Capital Corporation will post 5.13 earnings per share for the current year.

Pinnacle West Capital Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 2nd. Shareholders of record on Friday, August 1st will be paid a $0.895 dividend. This represents a $3.58 annualized dividend and a yield of 4.0%. The ex-dividend date of this dividend is Friday, August 1st. Pinnacle West Capital's payout ratio is currently 73.81%.

Insider Transactions at Pinnacle West Capital

In other news, EVP Jacob Tetlow sold 6,496 shares of the company's stock in a transaction on Monday, August 11th. The shares were sold at an average price of $92.37, for a total transaction of $600,035.52. Following the transaction, the executive vice president directly owned 56 shares of the company's stock, valued at $5,172.72. This represents a 99.15% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Corporate insiders own 0.23% of the company's stock.

Pinnacle West Capital Profile

Pinnacle West Capital Corporation, through its subsidiary, provides retail and wholesale electric services primarily in the state of Arizona. The company engages in the generation, transmission, and distribution of electricity using coal, nuclear, gas, oil, and solar generating facilities. Its transmission facilities include overhead lines and underground lines; and distribution facilities consist of overhead lines and underground primary cables.