Pinnacle West Capital (NYSE:PNW) Sets New 12-Month High - What's Next?

Key Points

• Pinnacle West Capital shares hit a new 52-week high, trading as high as $105.50, reflecting strong recent momentum in the stock.
• Recent analyst sentiment is mixed but mostly cautious: the stock carries an average “Hold” rating and an average price target of $102.50, with 3 Buy and 12 Hold ratings.
• The utility reported solid quarterly results, beating EPS and revenue estimates, and also pays a 3.5% dividend yield with $3.64 in annualized payouts.

Pinnacle West Capital Corporation (NYSE:PNW - Get Free Report)'s stock price reached a new 52-week high during trading on Wednesday . The stock traded as high as $105.50 and last traded at $104.9860, with a volume of 29961 shares trading hands. The stock had previously closed at $104.05.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on PNW. Stifel Nicolaus set a $107.00 target price on Pinnacle West Capital in a research note on Thursday, February 26th. Morgan Stanley set a $92.00 price target on Pinnacle West Capital in a report on Thursday, May 21st. Barclays boosted their price objective on Pinnacle West Capital from $101.00 to $102.00 and gave the stock an "equal weight" rating in a research report on Tuesday, May 5th. Truist Financial reduced their price objective on Pinnacle West Capital from $108.00 to $105.00 and set a "hold" rating for the company in a research note on Friday, May 29th. Finally, TD Cowen raised their target price on 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 analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $102.50.

Pinnacle West Capital Price Performance

The company has a current ratio of 0.60, a quick ratio of 0.39 and a debt-to-equity ratio of 1.38. The business has a 50-day moving average price of $101.72 and a 200 day moving average price of $97.42. The stock has a market cap of $12.67 billion, a PE ratio of 19.47, a PEG ratio of 3.75 and a beta of 0.44.

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

Pinnacle West Capital Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Monday, June 1st. Stockholders of record on Monday, May 4th were given a $0.91 dividend. The ex-dividend date of this dividend 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 67.78%.

Insider Activity at Pinnacle West Capital

In related news, EVP Jacob Tetlow sold 6,567 shares of the company's stock in a transaction that occurred on Wednesday, May 13th. The shares were sold at an average price of $99.00, for a total transaction of $650,133.00. Following the sale, the executive vice president directly owned 6,634 shares in the company, valued at approximately $656,766. This represents a 49.75% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Insiders own 0.19% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. Capital Research Global Investors raised its stake in shares of Pinnacle West Capital by 5.0% during 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 during the period. Barrow Hanley Mewhinney & Strauss LLC lifted its holdings in Pinnacle West Capital by 8.5% during the 3rd quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 7,223,725 shares of the utilities provider's stock worth $647,679,000 after purchasing an additional 568,581 shares in the last quarter. ATLAS Infrastructure Partners UK Ltd. boosted its stake in 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 worth $395,712,000 after purchasing an additional 1,369,350 shares during the period. Invesco Ltd. boosted its stake in Pinnacle West Capital by 1.8% in the 4th quarter. Invesco Ltd. now owns 4,249,267 shares of the utilities provider's stock worth $376,910,000 after purchasing an additional 74,023 shares during the period. Finally, Soroban Capital Partners LP grew its holdings in 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 valued at $388,373,000 after buying an additional 977,411 shares in the last quarter. 91.51% of the stock is currently owned by hedge funds and other institutional investors.

About Pinnacle West Capital

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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