QV Investors Inc. Reduces Position in Fortis $FTS

Key Points

• QV Investors reduced its Fortis position by 3.6% in the second quarter, selling 30,760 shares and retaining 822,277 shares valued at approximately $47.1 million. Institutional investors and hedge funds collectively own 57.77% of Fortis.
• Fortis reported quarterly EPS of $0.56, slightly above analyst expectations, while revenue of $1.67 billion fell short of estimates. The company declared a quarterly dividend of $0.64, equivalent to a 4.7% annualized yield.
• Fortis shares opened at $54.69, below their 52-week high of $59.40. Analysts collectively rate the stock “Hold”, with an average price target of $66.33, despite mixed individual ratings.

QV Investors Inc. trimmed its holdings in Fortis (NYSE:FTS - Free Report) by 3.6% in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 822,277 shares of the utilities provider's stock after selling 30,760 shares during the period. Fortis accounts for about 3.6% of QV Investors Inc.'s portfolio, making the stock its 7th biggest holding. QV Investors Inc. owned approximately 0.16% of Fortis worth $47,091,000 at the end of the most recent quarter.

Other institutional investors have also made changes to their positions in the company. Trust Co. of Vermont bought a new stake in Fortis in the 2nd quarter valued at $26,000. Scarborough Advisors LLC bought a new position in Fortis during the first quarter worth $29,000. Aberdeen Wealth Management LLC acquired a new position in shares of Fortis in the second quarter valued at $31,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC acquired a new position in shares of Fortis in the fourth quarter valued at $34,000. Finally, Towarzystwo Funduszy Inwestycyjnych PZU SA raised 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 valued at $36,000 after purchasing an additional 428 shares during the period. 57.77% of the stock is owned by institutional investors and hedge funds.

Fortis Price Performance

NYSE:FTS opened at $54.69 on Monday. Fortis has a 52 week low of $48.64 and a 52 week high of $59.40. The firm has a market cap of $27.94 billion, a price-to-earnings ratio of 22.14 and a beta of 0.43. The firm's 50-day simple moving average is $56.97 and its 200 day simple moving average is $56.63. The company has a debt-to-equity ratio of 1.27, a quick ratio of 0.47 and a current ratio of 0.56.

Fortis (NYSE:FTS - Get Free Report) last announced its earnings results on Friday, July 31st. The utilities provider reported $0.56 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.55 by $0.01. Fortis had a net margin of 14.17% and a return on equity of 7.16%. The firm had revenue of $1.67 billion for the quarter, compared to analyst estimates of $1.83 billion. During the same quarter in the prior year, the business posted $0.76 EPS. As a group, sell-side analysts predict that Fortis will post 2.56 earnings per share for the current year.

Fortis Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Wednesday, August 19th will be paid a $0.64 dividend. This represents a $2.56 annualized dividend and a dividend yield of 4.7%. The ex-dividend date is Wednesday, August 19th. Fortis's payout ratio is 73.68%.

Analyst Ratings Changes

FTS has been the subject of a number of research reports. Wall Street Zen cut shares of Fortis from a "hold" rating to a "sell" rating in a research note on Saturday, May 23rd. Wolfe Research set a $50.00 price target on shares of Fortis in a report on Tuesday, August 4th. TD Securities restated a "buy" rating on shares of Fortis in a research report on Tuesday, August 4th. Weiss Ratings restated a "buy (b)" rating on shares of Fortis in a report on Friday, July 17th. Finally, Royal Bank Of Canada upped their target price on Fortis from $80.00 to $89.00 and gave the company a "sector perform" rating in a research report on Monday, August 3rd. Three investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $66.33.

Fortis 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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