Hydro One (TSE:H) Shares Pass Below Fifty Day Moving Average - What's Next?

Key Points

• Hydro One's shares fell below their fifty-day moving average of C$49.19, trading as low as C$48.87, indicating potential concerns about the stock's performance.
• Analysts have shown confidence in Hydro One, with multiple upgrades to price targets, the highest now being C$53.00 from Royal Bank of Canada, reflecting a generally optimistic outlook.
• The company has also increased its quarterly dividend to $0.3331, representing an annual yield of 2.7%, signaling a commitment to returning value to shareholders.

Shares of Hydro One Limited (TSE:H - Get Free Report) crossed below its 50-day moving average during trading on Friday . The stock has a 50-day moving average of C$49.19 and traded as low as C$48.87. Hydro One shares last traded at C$49.66, with a volume of 729,166 shares traded.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on the company. CIBC decreased their price objective on Hydro One from C$52.00 to C$51.00 in a research note on Monday, July 21st. Royal Bank Of Canada upped their target price on Hydro One from C$46.00 to C$53.00 in a research report on Friday, May 9th. BMO Capital Markets upped their target price on Hydro One from C$46.00 to C$50.00 and gave the company a "market perform" rating in a research report on Friday, May 9th. Raymond James Financial reduced their target price on Hydro One from C$48.00 to C$45.00 and set a "market perform" rating on the stock in a research report on Thursday, April 17th. Finally, Jefferies Financial Group upped their target price on Hydro One from C$45.00 to C$49.00 and gave the company a "hold" rating in a research report on Tuesday, April 15th. Eight analysts have rated the stock with a hold rating and one has given a buy rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of C$50.10.

Hydro One Price Performance

The stock has a market capitalization of C$29.77 billion, a price-to-earnings ratio of 26.19, a PEG ratio of 3.17 and a beta of 0.34. The company has a debt-to-equity ratio of 140.53, a quick ratio of 0.30 and a current ratio of 0.58. The company has a 50 day moving average of C$49.17 and a 200 day moving average of C$48.46.

Hydro One Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, June 30th. Stockholders of record on Monday, June 30th were paid a dividend of $0.3331 per share. This is a positive change from Hydro One's previous quarterly dividend of $0.31. The ex-dividend date of this dividend was Wednesday, June 11th. This represents a $1.33 dividend on an annualized basis and a dividend yield of 2.7%. Hydro One's dividend payout ratio (DPR) is currently 66.44%.

Hydro One Company Profile

Hydro One operates regulated transmission and distribution assets in Ontario. The area's largest electricity provider serves nearly 1.5 million customers. Transmission accounts for roughly 60% of the company's rate base, with distribution accounting for the remainder. Hydro One operates a small telecom business, Acronym Solutions, with annual revenue contributing less than 1% to consolidated results.