Algonquin Power & Utilities (NYSE:AQN) Reaches New 1-Year Low - What's Next?

Key Points

• Algonquin Power & Utilities shares fell to a new 52-week low of $5.24, trading down 2.1% with a market capitalization of approximately $4.03 billion.
• Analyst sentiment remains cautiously positive: seven analysts rate the stock Buy and six rate it Hold, resulting in a consensus “Moderate Buy” rating and a $6.75 target price.
• The company reported quarterly EPS of $0.04, below the $0.05 consensus estimate, while maintaining a quarterly dividend of $0.065, equivalent to a 5.0% annualized yield; its 136.84% payout ratio highlights dividend coverage concerns.

Algonquin Power & Utilities Corp. (NYSE:AQN - Get Free Report) shares hit a new 52-week low on Monday . The stock traded as low as $5.24 and last traded at $5.2550, with a volume of 1888029 shares changing hands. The stock had previously closed at $5.35.

Analyst Upgrades and Downgrades

AQN has been the topic of several recent analyst reports. TD set a $6.00 target price on Algonquin Power & Utilities and gave the company a "hold" rating in a research note on Monday, August 31st. Huntington began coverage on Algonquin Power & Utilities in a research note on Monday, September 14th. They issued an "outperform" rating and a $7.00 price target for the company. Weiss Ratings downgraded Algonquin Power & Utilities from a "hold (c)" rating to a "hold (c-)" rating in a report on Tuesday, August 11th. Finally, National Bank Financial set a $7.00 price objective on Algonquin Power & Utilities and gave the company an "outperform" rating in a research report on Tuesday, September 1st. Seven equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat.com, Algonquin Power & Utilities currently has a consensus rating of "Moderate Buy" and a consensus target price of $6.75.

Algonquin Power & Utilities Trading Down 2.1%

The company has a current ratio of 0.88, a quick ratio of 0.69 and a debt-to-equity ratio of 1.28. The stock has a market capitalization of $4.03 billion, a PE ratio of 27.55 and a beta of 0.70. The stock has a 50 day moving average price of $5.73 and a 200-day moving average price of $5.97.

Algonquin Power & Utilities (NYSE:AQN - Get Free Report) last posted its quarterly earnings data on Friday, August 7th. The utilities provider reported $0.04 EPS for the quarter, missing analysts' consensus estimates of $0.05 by ($0.01). The firm had revenue of $582.99 million for the quarter, compared to analysts' expectations of $582.99 million. Algonquin Power & Utilities had a net margin of 5.77% and a return on equity of 5.16%. During the same quarter last year, the company posted $0.04 EPS. Algonquin Power & Utilities has set its FY 2027 guidance at 0.380-0.420 EPS and its FY 2026 guidance at 0.350-0.370 EPS. Sell-side analysts expect that Algonquin Power & Utilities Corp. will post 0.35 earnings per share for the current year.

Algonquin Power & Utilities Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Tuesday, September 29th will be paid a $0.065 dividend. This represents a $0.26 annualized dividend and a dividend yield of 5.0%. The ex-dividend date is Tuesday, September 29th. Algonquin Power & Utilities's dividend payout ratio is 136.84%.

Institutional Trading of Algonquin Power & Utilities

Several large investors have recently added to or reduced their stakes in the business. Principal Financial Group Inc. raised its holdings in Algonquin Power & Utilities by 13.0% in the 1st quarter. Principal Financial Group Inc. now owns 13,633,904 shares of the utilities provider's stock worth $83,497,000 after purchasing an additional 1,563,924 shares during the period. Norges Bank purchased a new stake in Algonquin Power & Utilities in the 4th quarter worth approximately $67,065,000. Dimensional Fund Advisors LP raised its stake in Algonquin Power & Utilities by 1.9% during the 1st quarter. Dimensional Fund Advisors LP now owns 7,716,896 shares of the utilities provider's stock worth $47,382,000 after acquiring an additional 144,500 shares during the period. Bank of Nova Scotia purchased a new position in Algonquin Power & Utilities during the second quarter valued at approximately $46,703,000. Finally, Arrowstreet Capital Limited Partnership boosted its position in shares of Algonquin Power & Utilities by 85.6% in the first quarter. Arrowstreet Capital Limited Partnership now owns 7,321,263 shares of the utilities provider's stock worth $44,861,000 after purchasing an additional 3,376,321 shares during the period. 62.28% of the stock is currently owned by institutional investors.

Algonquin Power & Utilities Company Profile

Algonquin Power & Utilities Corp. is a North American utility and renewable energy company headquartered in Oakville, Ontario. Through its Liberty operating businesses, the company has provided regulated electricity, natural gas, water and wastewater services to residential, commercial and industrial customers.

Algonquin has historically operated regulated utility systems in the United States and Canada, with activities including electricity distribution and transmission, natural gas distribution, and water and wastewater utilities.

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