Hsbc Holdings PLC Decreases Stock Holdings 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 cut its holdings in Pinnacle West Capital Corporation (NYSE:PNW - Free Report) by 28.6% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). 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 as of its most recent SEC filing.

A number of other hedge funds also recently added to or reduced their stakes in the business. HITE Hedge Asset Management LLC lifted its stake in Pinnacle West Capital by 70.4% in the first quarter. HITE Hedge Asset Management LLC now owns 181,573 shares of the utilities provider's stock worth $17,295,000 after acquiring an additional 75,000 shares during the period. Fuller & Thaler Asset Management Inc. lifted its stake in Pinnacle West Capital by 1.8% in the first quarter. Fuller & Thaler Asset Management Inc. now owns 35,548 shares of the utilities provider's stock worth $3,386,000 after acquiring an additional 643 shares during the period. RWA Wealth Partners LLC purchased a new stake in Pinnacle West Capital in the first quarter worth about $206,000. Wellington Management Group LLP purchased a new stake in shares of Pinnacle West Capital during the first quarter valued at about $312,000. Finally, Brooklyn Investment Group lifted its position in shares of Pinnacle West Capital by 440.0% during the first quarter. Brooklyn Investment Group now owns 486 shares of the utilities provider's stock valued at $46,000 after buying an additional 396 shares during the last quarter. 91.51% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Pinnacle West Capital

In other news, EVP Jacob Tetlow sold 6,496 shares of the firm's stock in a transaction that occurred 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 sale, the executive vice president owned 56 shares of the company's stock, valued at $5,172.72. This trade represents a 99.15% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.23% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the stock. UBS Group restated a "neutral" rating and set a $98.00 price objective (up previously from $96.00) on shares of Pinnacle West Capital in a report on Friday, July 11th. Wells Fargo & Company increased their price objective on shares of Pinnacle West Capital from $95.00 to $98.00 and gave the company an "equal weight" rating in a research report on Friday, May 2nd. Wall Street Zen lowered shares of Pinnacle West Capital from a "hold" rating to a "sell" rating in a research report on Monday, May 5th. LADENBURG THALM/SH SH upgraded shares of Pinnacle West Capital to a "hold" rating in a research note on Friday, May 9th. Finally, Barclays cut their price objective on shares of Pinnacle West Capital from $94.00 to $93.00 and set an "equal weight" rating on the stock in a research note on Wednesday, August 13th. Four equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat.com, Pinnacle West Capital has an average rating of "Hold" and a consensus target price of $97.22.

Pinnacle West Capital Stock Performance

Shares of NYSE PNW traded down $0.66 during midday trading on Thursday, reaching $89.77. 320,474 shares of the stock were exchanged, compared to its average volume of 1,156,555. The firm has a market cap of $10.72 billion, a price-to-earnings ratio of 18.50, a PEG ratio of 9.29 and a beta of 0.38. Pinnacle West Capital Corporation has a twelve month low of $81.47 and a twelve month high of $96.50. The firm has a 50-day simple moving average of $90.96 and a two-hundred day simple moving average of $91.50. 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 (NYSE:PNW - Get Free Report) last issued its quarterly earnings data on Wednesday, August 6th. The utilities provider reported $1.58 EPS for the quarter, hitting analysts' consensus estimates of $1.58. The business had revenue of $1.36 billion for the quarter, compared to analysts' expectations of $1.35 billion. Pinnacle West Capital had a net margin of 10.96% and a return on equity of 8.45%. The business's revenue was up 3.8% on a year-over-year basis. During the same quarter last year, the company earned $1.76 EPS. As a group, analysts anticipate that Pinnacle West Capital Corporation will post 5.13 EPS for the current fiscal year.

Pinnacle West Capital Dividend Announcement

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

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.