Pinnacle West Capital (NYSE:PNW) Lowered to "Sell" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Pinnacle West Capital to “Sell” from “Hold.” However, broader analyst sentiment remains “Hold,” with three Buy ratings, twelve Hold ratings and an average price target of $104.07.
• Pinnacle West shares opened at $101.12, with a market capitalization of $12.26 billion and a 52-week trading range of $85.32 to $111.16.
• The company reported quarterly EPS of $1.43, slightly below the $1.46 consensus estimate, while revenue of $1.46 billion exceeded expectations and rose 7.1% year over year.

Pinnacle West Capital (NYSE:PNW - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Saturday.

A number of other equities research analysts also recently commented on PNW. Jefferies Financial Group restated a "buy" rating and issued a $129.00 target price on shares of Pinnacle West Capital in a research report on Wednesday, July 8th. Argus raised their price objective on Pinnacle West Capital from $95.00 to $106.00 and gave the stock a "buy" rating in a research report on Tuesday, April 14th. BMO Capital Markets reduced their price objective on shares of Pinnacle West Capital from $106.00 to $104.00 and set a "market perform" rating on the stock in a report on Wednesday, July 22nd. Morgan Stanley set a $97.00 price objective on shares of Pinnacle West Capital in a report on Wednesday, July 22nd. Finally, TD Cowen upped their target price on shares of Pinnacle West Capital from $100.00 to $101.00 and gave the company a "hold" rating in a research report on Friday, May 15th. Three research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $104.07.

Pinnacle West Capital Stock Performance

Pinnacle West Capital stock opened at $101.12 on Friday. The firm has a 50 day simple moving average of $104.50 and a 200-day simple moving average of $101.31. The stock has a market cap of $12.26 billion, a price-to-earnings ratio of 19.37, a price-to-earnings-growth ratio of 3.69 and a beta of 0.44. The company has a debt-to-equity ratio of 1.38, a current ratio of 0.59 and a quick ratio of 0.39. Pinnacle West Capital has a 1-year low of $85.32 and a 1-year high of $111.16.

Pinnacle West Capital (NYSE:PNW - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The utilities provider reported $1.43 EPS for the quarter, missing the consensus estimate of $1.46 by ($0.03). Pinnacle West Capital had a net margin of 11.52% and a return on equity of 8.99%. The firm had revenue of $1.46 billion for the quarter, compared to analysts' expectations of $1.40 billion. During the same period in the previous year, the firm posted $1.58 EPS. The firm's quarterly revenue was up 7.1% compared to the same quarter last year. Pinnacle West Capital has set its FY 2026 guidance at 4.550-4.750 EPS. On average, analysts expect that Pinnacle West Capital will post 4.7 EPS for the current year.

Insider Activity at Pinnacle West Capital

In other news, EVP Jacob Tetlow sold 6,567 shares of Pinnacle West Capital stock in a transaction on Wednesday, May 13th. The stock was 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 directly owned 6,634 shares of the company's stock, valued at approximately $656,766. The trade was a 49.75% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. 0.19% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Pinnacle West Capital

Several hedge funds have recently bought and sold shares of the company. Meeder Advisory Services Inc. boosted its holdings in Pinnacle West Capital by 7.6% during the 2nd quarter. Meeder Advisory Services Inc. now owns 4,939 shares of the utilities provider's stock valued at $528,000 after acquiring an additional 350 shares during the period. Quent Capital LLC increased its stake in Pinnacle West Capital by 52.5% during the second quarter. Quent Capital LLC now owns 880 shares of the utilities provider's stock worth $94,000 after purchasing an additional 303 shares during the period. Perigon Wealth Management LLC purchased a new stake in Pinnacle West Capital during the second quarter worth about $218,000. Mitsubishi UFJ Asset Management Co. Ltd. lifted its position in shares of Pinnacle West Capital by 8.7% during the second quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 149,733 shares of the utilities provider's stock worth $16,021,000 after purchasing an additional 12,037 shares in the last quarter. Finally, Bell Investment Advisors Inc lifted its position in shares of Pinnacle West Capital by 144.9% during the second quarter. Bell Investment Advisors Inc now owns 338 shares of the utilities provider's stock worth $36,000 after purchasing an additional 200 shares in the last quarter. Institutional investors and hedge funds 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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