Fortis (NYSE:FTS) Receives Average Rating of "Hold" from Analysts

Key Points

• Analysts rate Fortis “Hold” on average: Five of eight analysts recommend holding the stock, while three recommend buying it. The average 12-month price target is $66.33.
• Fortis reported quarterly EPS of $0.56, slightly above estimates, though revenue of $1.67 billion fell short of the $1.83 billion consensus and EPS declined from $0.76 a year earlier.
• The company declared a quarterly dividend of $0.64 per share, equivalent to $2.56 annually and a 4.7% yield. Institutional investors own approximately 57.77% of Fortis shares.

Shares of Fortis (NYSE:FTS - Get Free Report) have been given an average rating of "Hold" by the eight research firms that are covering the firm, Marketbeat.com reports. Five investment analysts have rated the stock with a hold recommendation and three have given a buy recommendation to the company. The average 1-year price objective among analysts that have updated their coverage on the stock in the last year is $66.3333.

A number of equities research analysts recently issued reports on FTS shares. Wall Street Zen downgraded shares of Fortis from a "hold" rating to a "sell" rating in a research note on Saturday, May 23rd. TD Securities restated a "buy" rating on shares of Fortis in a report on Tuesday, August 4th. BMO Capital Markets restated a "market perform" rating on shares of Fortis in a research report on Monday, August 3rd. Royal Bank Of Canada increased their price target on shares of Fortis from $80.00 to $89.00 and gave the company a "sector perform" rating in a report on Monday, August 3rd. Finally, Scotiabank reiterated a "sector perform" rating on shares of Fortis in a research report on Tuesday, August 4th.

Fortis Stock Performance

NYSE:FTS opened at $54.94 on Monday. The company has a market cap of $28.07 billion, a price-to-earnings ratio of 22.24 and a beta of 0.43. Fortis has a 1 year low of $48.64 and a 1 year high of $59.40. The stock's 50 day simple moving average is $57.12 and its two-hundred day simple moving average is $56.61. The company has a debt-to-equity ratio of 1.27, a current ratio of 0.56 and a quick ratio of 0.47.

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

Fortis Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Wednesday, August 19th will be issued 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 dividend payout ratio (DPR) is 73.68%.

Institutional Investors Weigh In On Fortis

Institutional investors and hedge funds have recently modified their holdings of the business. Addison Capital Co boosted its position in shares of Fortis by 0.9% during the first quarter. Addison Capital Co now owns 32,797 shares of the utilities provider's stock worth $1,830,000 after buying an additional 289 shares during the period. Public Sector Pension Investment Board lifted its stake in Fortis by 0.6% during the 2nd quarter. Public Sector Pension Investment Board now owns 48,548 shares of the utilities provider's stock worth $2,313,000 after acquiring an additional 300 shares in the last quarter. PNC Financial Services Group Inc. lifted its stake in Fortis by 10.9% during the 1st quarter. PNC Financial Services Group Inc. now owns 3,121 shares of the utilities provider's stock worth $174,000 after acquiring an additional 308 shares in the last quarter. Wellington Management Group LLP boosted its holdings in Fortis by 0.8% during the 4th quarter. Wellington Management Group LLP now owns 37,822 shares of the utilities provider's stock valued at $1,969,000 after acquiring an additional 316 shares during the period. Finally, Syon Capital LLC grew its position in Fortis by 3.8% in the 2nd quarter. Syon Capital LLC now owns 8,714 shares of the utilities provider's stock valued at $499,000 after acquiring an additional 316 shares in the last quarter. 57.77% of the stock is owned by institutional investors.

About Fortis

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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