Pampa Energia (NYSE:PAM) Announces Earnings Results

Key Points

• Pampa Energia exceeded quarterly expectations, reporting EPS of $2.50 versus the $2.47 consensus and revenue of $746 million compared with estimates of $743.17 million. The company posted a 20.31% net margin and 12.23% return on equity.
• PAM shares fell $1.83 to $84.89 in midday trading, while analysts maintained a generally cautious outlook. The stock carries a consensus “Hold” rating and an average price target of $103.83.
• Institutional ownership increased as several hedge funds raised their positions, but insider activity was mixed: insiders bought $7.7 million of shares and sold $24.7 million during the quarter. Corporate insiders own 55.52% of the company.

Pampa Energia (NYSE:PAM - Get Free Report) issued its earnings results on Tuesday. The utilities provider reported $2.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.47 by $0.03, FiscalAI reports. Pampa Energia had a return on equity of 12.23% and a net margin of 20.31%.The firm had revenue of $746.00 million for the quarter, compared to analyst estimates of $743.17 million.

Pampa Energia Price Performance

PAM stock traded down $1.83 during midday trading on Tuesday, reaching $84.89. The company had a trading volume of 210,688 shares, compared to its average volume of 223,046. The company has a debt-to-equity ratio of 0.49, a current ratio of 2.04 and a quick ratio of 1.78. Pampa Energia has a 1 year low of $54.95 and a 1 year high of $94.50. The company has a market capitalization of $4.56 billion, a P/E ratio of 10.58, a P/E/G ratio of 2.32 and a beta of 0.97. The firm has a 50-day moving average price of $84.22 and a 200-day moving average price of $83.32.

Insider Activity

In related news, VP Gustavo Mariani acquired 25,000 shares of the company's stock in a transaction dated Thursday, May 7th. The stock was bought at an average cost of $81.40 per share, with a total value of $2,035,000.00. Following the acquisition, the vice president owned 1,566,184 shares of the company's stock, valued at approximately $127,487,377.60. The trade was a 1.62% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Damian Miguel Mindlin sold 555,000 shares of the company's stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $3.55, for a total transaction of $1,970,250.00. Following the completion of the transaction, the insider owned 12,541,870 shares of the company's stock, valued at $44,523,638.50. This trade represents a 4.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have purchased 1,710,694 shares of company stock worth $7,701,005 and have sold 7,157,000 shares worth $24,696,070. Corporate insiders own 55.52% of the company's stock.

Hedge Funds Weigh In On Pampa Energia

Hedge funds and other institutional investors have recently modified their holdings of the company. Millennium Management LLC raised its holdings in shares of Pampa Energia by 85.4% during the 1st quarter. Millennium Management LLC now owns 162,521 shares of the utilities provider's stock valued at $12,547,000 after buying an additional 74,841 shares in the last quarter. Jane Street Group LLC grew its position in Pampa Energia by 44.1% during the first quarter. Jane Street Group LLC now owns 19,607 shares of the utilities provider's stock valued at $1,514,000 after acquiring an additional 6,005 shares during the last quarter. Marshall Wace LLP raised its stake in shares of Pampa Energia by 21.7% during the second quarter. Marshall Wace LLP now owns 57,153 shares of the utilities provider's stock worth $3,965,000 after acquiring an additional 10,195 shares in the last quarter. Federated Hermes Inc. purchased a new position in shares of Pampa Energia during the second quarter worth approximately $578,000. Finally, Qube Research & Technologies Ltd bought a new stake in shares of Pampa Energia in the 2nd quarter worth approximately $379,000. 12.77% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

PAM has been the subject of several recent research reports. JPMorgan Chase & Co. lifted their price objective on Pampa Energia from $97.50 to $101.50 and gave the stock a "neutral" rating in a report on Monday, June 1st. Zacks Research downgraded shares of Pampa Energia from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 27th. Weiss Ratings restated a "hold (c)" rating on shares of Pampa Energia in a research note on Friday, June 12th. Finally, Wall Street Zen downgraded shares of Pampa Energia from a "strong-buy" rating to a "buy" rating in a report on Saturday, June 20th. Two equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $103.83.

Pampa Energia Company Profile

Pampa Energía SA is Argentina's largest independent energy company, with integrated operations spanning electricity generation, transmission, distribution and oil and gas activities. The company holds a diversified portfolio of thermal and hydroelectric power plants, along with growing investments in renewable energy projects, serving both domestic and regional markets.

In its electricity business, Pampa Energía develops and operates plants that supply energy to Argentina's power grid.

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