Pinnacle West Capital Corporation (NYSE:PNW) Given Average Recommendation of "Hold" by Brokerages

Key Points

• Pinnacle West Capital (NYSE:PNW) has an average analyst rating of “Hold”, with 12 hold ratings and 3 buy ratings among 15 brokerages. The average 12-month price target is $102.50.
• The utility reported better-than-expected Q1 earnings, posting $0.27 EPS versus a consensus loss estimate and revenue of $1.15 billion versus expectations of $1.08 billion. Revenue rose 11.4% year over year.
• The company paid a quarterly dividend of $0.91, or $3.64 annualized, for a yield of about 3.5%. An executive also sold shares in May, while institutional investors continue to own the vast majority of the stock.

Pinnacle West Capital Corporation (NYSE:PNW - Get Free Report) has received an average rating of "Hold" from the fifteen brokerages that are covering the stock, MarketBeat Ratings reports. Twelve equities research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. The average 12-month price objective among brokers that have updated their coverage on the stock in the last year is $102.50.

PNW has been the subject of several research reports. Stifel Nicolaus set a $107.00 price objective on shares of Pinnacle West Capital in a research report on Thursday, February 26th. Wells Fargo & Company set a $106.00 price target on shares of Pinnacle West Capital in a report on Tuesday, April 21st. Barclays boosted their price target on shares of Pinnacle West Capital from $101.00 to $102.00 and gave the company an "equal weight" rating in a report on Tuesday, May 5th. Citigroup boosted their price target on shares of Pinnacle West Capital from $100.00 to $109.00 and gave the company a "neutral" rating in a report on Thursday, February 26th. Finally, Morgan Stanley set a $92.00 price target on shares of Pinnacle West Capital in a report on Thursday, May 21st.

Pinnacle West Capital Price Performance

Pinnacle West Capital stock opened at $103.26 on Monday. The stock has a market cap of $12.51 billion, a price-to-earnings ratio of 19.23, a price-to-earnings-growth ratio of 3.79 and a beta of 0.44. The company has a debt-to-equity ratio of 1.38, a current ratio of 0.60 and a quick ratio of 0.39. Pinnacle West Capital has a 1 year low of $85.32 and a 1 year high of $104.92. The firm has a 50-day moving average of $101.73 and a two-hundred day moving average of $96.77.

Pinnacle West Capital (NYSE:PNW - Get Free Report) last released its quarterly earnings data on Monday, May 4th. The utilities provider reported $0.27 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.03) by $0.30. The company had revenue of $1.15 billion during the quarter, compared to analysts' expectations of $1.08 billion. Pinnacle West Capital had a net margin of 11.99% and a return on equity of 9.27%. The firm's quarterly revenue was up 11.4% on a year-over-year basis. During the same period in the previous year, the company earned ($0.04) EPS. Pinnacle West Capital has set its FY 2026 guidance at 4.550-4.750 EPS. On average, research analysts forecast that Pinnacle West Capital will post 4.7 earnings per share for the current year.

Pinnacle West Capital Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, June 1st. Stockholders of record on Monday, May 4th were issued a $0.91 dividend. The ex-dividend date was Monday, May 4th. This represents a $3.64 annualized dividend and a dividend yield of 3.5%. Pinnacle West Capital's payout ratio is currently 67.78%.

Insider Activity at Pinnacle West Capital

In other news, EVP Jacob Tetlow sold 6,567 shares of the business's stock in a transaction dated Wednesday, May 13th. The shares were sold at an average price of $99.00, for a total value of $650,133.00. Following the completion of the sale, the executive vice president owned 6,634 shares in the company, valued at approximately $656,766. The trade was a 49.75% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Corporate insiders own 0.19% of the company's stock.

Institutional Investors Weigh In On Pinnacle West Capital

Several large investors have recently modified their holdings of the business. Capital Research Global Investors raised its holdings in shares of Pinnacle West Capital by 5.0% in the 3rd quarter. Capital Research Global Investors now owns 15,853,302 shares of the utilities provider's stock valued at $1,421,407,000 after purchasing an additional 758,190 shares in the last quarter. Barrow Hanley Mewhinney & Strauss LLC raised its holdings in shares of Pinnacle West Capital by 8.5% in the 3rd quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 7,223,725 shares of the utilities provider's stock valued at $647,679,000 after purchasing an additional 568,581 shares in the last quarter. ATLAS Infrastructure Partners UK Ltd. raised its holdings in shares of Pinnacle West Capital by 44.3% in the 4th quarter. ATLAS Infrastructure Partners UK Ltd. now owns 4,461,243 shares of the utilities provider's stock valued at $395,712,000 after purchasing an additional 1,369,350 shares in the last quarter. Invesco Ltd. raised its stake in shares of Pinnacle West Capital by 1.8% during the 4th quarter. Invesco Ltd. now owns 4,249,267 shares of the utilities provider's stock worth $376,910,000 after acquiring an additional 74,023 shares in the last quarter. Finally, Soroban Capital Partners LP raised its stake in shares of Pinnacle West Capital by 34.0% during the 1st quarter. Soroban Capital Partners LP now owns 3,854,815 shares of the utilities provider's stock worth $388,373,000 after acquiring an additional 977,411 shares in the last quarter. Institutional investors own 91.51% of the company's stock.

Pinnacle West Capital Company Profile

Pinnacle West Capital Corporation is a publicly traded utility holding company headquartered in Phoenix, Arizona. Through its principal subsidiary, Arizona Public Service Company (APS), Pinnacle West generates, transmits and distributes electricity to more than one million residential, commercial and industrial customers across central and southern Arizona. The company's regulated operations focus on delivering safe, reliable power while meeting evolving environmental standards.

The company's diversified generation portfolio includes natural gas–fired plants, the nuclear-powered Palo Verde Generating Station—the largest nuclear facility in the United States by net output—plus growing investments in solar and battery storage projects.

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