Fortis (NYSE:FTS) Reaches New 52-Week High - Still a Buy?

Key Points

• Fortis shares reached a new 52-week high of $51.95 and currently have a consensus rating of "Moderate Buy" with a price target of $72.00.
• The company reported better-than-expected quarterly earnings with an EPS of $0.55, surpassing estimates of $0.51, and a revenue of $2.03 billion compared to expected $1.91 billion.
• Fortis announced an increase in its quarterly dividend to $0.4448 per share, reflecting a yield of 3.4% and a dividend payout ratio of 72.84%.

Fortis (NYSE:FTS - Get Free Report) shares hit a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $51.95 and last traded at $51.93, with a volume of 77397 shares changing hands. The stock had previously closed at $51.65.

Wall Street Analyst Weigh In

FTS has been the topic of several research reports. Cibc World Mkts upgraded Fortis from a "hold" rating to a "strong-buy" rating in a research note on Monday, July 21st. TD Securities reissued a "buy" rating on shares of Fortis in a report on Tuesday, August 5th. Raymond James Financial reissued an "outperform" rating on shares of Fortis in a report on Tuesday, August 5th. Zacks Research cut Fortis from a "strong-buy" rating to a "hold" rating in a report on Monday, August 18th. Finally, National Bankshares reissued a "sector perform" rating on shares of Fortis in a report on Tuesday, August 5th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $72.00.

Fortis Stock Performance

The firm has a market capitalization of $26.48 billion, a P/E ratio of 21.56, a price-to-earnings-growth ratio of 4.04 and a beta of 0.50. The stock has a 50-day moving average of $50.08 and a 200 day moving average of $48.66. The company has a debt-to-equity ratio of 1.30, a quick ratio of 0.47 and a current ratio of 0.58.

Fortis (NYSE:FTS - Get Free Report) last released its quarterly earnings results on Friday, August 1st. The utilities provider reported $0.55 EPS for the quarter, topping analysts' consensus estimates of $0.51 by $0.04. The business had revenue of $2.03 billion for the quarter, compared to analyst estimates of $1.91 billion. Fortis had a return on equity of 7.24% and a net margin of 14.48%.During the same period in the prior year, the company earned $0.67 EPS. On average, research analysts anticipate that Fortis will post 2.35 earnings per share for the current year.

Fortis Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, September 1st. Investors of record on Tuesday, August 19th were given a dividend of $0.4448 per share. This is a boost from Fortis's previous quarterly dividend of $0.43. The ex-dividend date was Tuesday, August 19th. This represents a $1.78 dividend on an annualized basis and a yield of 3.4%. Fortis's dividend payout ratio is currently 72.84%.

Institutional Investors Weigh In On Fortis

A number of large investors have recently bought and sold shares of the business. Cullen Frost Bankers Inc. acquired a new position in Fortis during the 1st quarter worth $28,000. Trust Co. of Toledo NA OH acquired a new position in Fortis during the 2nd quarter worth $28,000. Smartleaf Asset Management LLC lifted its holdings in Fortis by 2,119.1% during the 2nd quarter. Smartleaf Asset Management LLC now owns 1,043 shares of the utilities provider's stock worth $49,000 after buying an additional 996 shares in the last quarter. Farther Finance Advisors LLC lifted its holdings in Fortis by 286.7% during the 1st quarter. Farther Finance Advisors LLC now owns 1,106 shares of the utilities provider's stock worth $51,000 after buying an additional 820 shares in the last quarter. Finally, Hexagon Capital Partners LLC lifted its holdings in Fortis by 111.7% during the 1st quarter. Hexagon Capital Partners LLC now owns 1,226 shares of the utilities provider's stock worth $56,000 after buying an additional 647 shares in the last quarter. 57.77% of the stock is currently owned by institutional investors.

About Fortis

Fortis Inc operates as an electric and gas utility company in Canada, the United States, and the Caribbean countries. It generates, transmits, and distributes electricity to approximately 447,000 retail customers in southeastern Arizona; and 103,000 retail customers in Arizona's Mohave and Santa Cruz counties with an aggregate capacity of 3,408 megawatts (MW), including 68 MW of solar capacity and 250 MV of wind capacity.

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