Fortis (NYSE:FTS) Stock Rating Lowered by Zacks Research

Key Points

• Fortis stock has been downgraded from a "strong-buy" to a "hold" rating by Zacks Research, amid a mixed response from other research firms including a recent upgrade to "buy" from Desjardins.
• The company's latest earnings report showed a net income of $0.55 EPS, exceeding expectations, with revenue of $2.03 billion for the quarter.
• Institutional investors have been active, increasing their holdings significantly, with 57.77% of the stock currently owned by hedge funds and other institutions.

Fortis (NYSE:FTS - Get Free Report) was downgraded by equities researchers at Zacks Research from a "strong-buy" rating to a "hold" rating in a note issued to investors on Monday,Zacks.com reports.

A number of other research firms have also weighed in on FTS. Desjardins upgraded shares of Fortis from a "hold" rating to a "buy" rating in a report on Tuesday, August 5th. BMO Capital Markets reaffirmed a "market perform" rating on shares of Fortis in a research report on Monday, August 4th. Royal Bank Of Canada lifted their price objective on Fortis from $69.00 to $72.00 and gave the stock a "sector perform" rating in a research report on Thursday, May 8th. TD Securities restated a "buy" rating on shares of Fortis in a report on Tuesday, August 5th. Finally, Cibc World Mkts raised Fortis from a "hold" rating to a "strong-buy" rating in a research note on Monday, July 21st. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, Fortis has a consensus rating of "Hold" and an average target price of $72.00.

Fortis Trading Up 1.2%

Shares of NYSE:FTS traded up $0.5960 during trading on Monday, reaching $50.8360. 81,656 shares of the company traded hands, compared to its average volume of 594,728. The company has a current ratio of 0.58, a quick ratio of 0.47 and a debt-to-equity ratio of 1.30. Fortis has a 52-week low of $40.32 and a 52-week high of $51.45. The firm has a market capitalization of $25.60 billion, a price-to-earnings ratio of 20.97, a P/E/G ratio of 3.94 and a beta of 0.46. The business's fifty day moving average is $48.39 and its 200-day moving average is $46.93.

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

Hedge Funds Weigh In On Fortis

Several large investors have recently made changes to their positions in the business. Trust Co. of Toledo NA OH bought a new position in Fortis during the 2nd quarter valued at approximately $28,000. Cullen Frost Bankers Inc. purchased a new stake in shares of Fortis in the first quarter worth $28,000. Smartleaf Asset Management LLC increased its holdings in shares of Fortis by 2,119.1% during the second quarter. Smartleaf Asset Management LLC now owns 1,043 shares of the utilities provider's stock valued at $49,000 after acquiring an additional 996 shares in the last quarter. Farther Finance Advisors LLC raised its position in shares of Fortis by 286.7% in the 1st quarter. Farther Finance Advisors LLC now owns 1,106 shares of the utilities provider's stock worth $51,000 after purchasing an additional 820 shares during the last quarter. Finally, State of Wyoming bought a new position in Fortis in the 2nd quarter worth about $56,000. 57.77% of the stock is currently owned by hedge funds and other institutional investors.

Fortis Company Profile

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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