Short Interest in The AES Corporation (NYSE:AES) Drops By 14.8%

Key Points

• Short interest in AES fell 14.8% in April to 20,889,342 shares (about 3.0% of the float), leaving a days-to-cover ratio of 2.7.
• AES declared a quarterly dividend of $0.176 (annualized $0.70) implying a 4.9% yield, with an ex-dividend date of May 1 and payment on May 15.
• The company recently beat quarterly estimates with EPS of $0.81 versus $0.68 and revenue of $3.10B versus $3.07B; the stock trades at a P/E of 11.34 and carries a consensus analyst rating of Hold (average target $24.09).

The AES Corporation (NYSE:AES - Get Free Report) was the recipient of a significant drop in short interest during the month of April. As of April 15th, there was short interest totaling 20,889,342 shares, a drop of 14.8% from the March 31st total of 24,520,971 shares. Based on an average trading volume of 7,871,467 shares, the days-to-cover ratio is presently 2.7 days. Currently, 3.0% of the company's shares are short sold.

AES Stock Down 1.1%

Shares of AES traded down $0.17 during midday trading on Friday, reaching $14.29. 19,426,955 shares of the company were exchanged, compared to its average volume of 12,392,506. The stock has a 50-day moving average price of $14.55 and a 200-day moving average price of $14.47. The company has a market cap of $10.19 billion, a price-to-earnings ratio of 11.34 and a beta of 1.03. AES has a 1-year low of $9.46 and a 1-year high of $17.65. The company has a current ratio of 0.77, a quick ratio of 0.69 and a debt-to-equity ratio of 2.94.

AES (NYSE:AES - Get Free Report) last issued its quarterly earnings data on Monday, March 2nd. The utilities provider reported $0.81 EPS for the quarter, topping analysts' consensus estimates of $0.68 by $0.13. The company had revenue of $3.10 billion for the quarter, compared to analysts' expectations of $3.07 billion. AES had a return on equity of 19.93% and a net margin of 7.40%.During the same quarter in the previous year, the firm posted $0.54 earnings per share. Research analysts expect that AES will post 2.29 earnings per share for the current year.

AES Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, May 15th. Stockholders of record on Friday, May 1st will be given a dividend of $0.176 per share. This represents a $0.70 dividend on an annualized basis and a dividend yield of 4.9%. The ex-dividend date of this dividend is Friday, May 1st. AES's payout ratio is presently 55.56%.

Institutional Trading of AES

Hedge funds and other institutional investors have recently modified their holdings of the business. Campbell & CO Investment Adviser LLC increased its position in shares of AES by 152.2% during the third quarter. Campbell & CO Investment Adviser LLC now owns 155,372 shares of the utilities provider's stock worth $2,045,000 after acquiring an additional 93,763 shares during the last quarter. BI Asset Management Fondsmaeglerselskab A S bought a new stake in AES in the third quarter valued at about $4,585,000. SG Americas Securities LLC increased its holdings in AES by 128.6% in the fourth quarter. SG Americas Securities LLC now owns 7,147,438 shares of the utilities provider's stock valued at $102,494,000 after buying an additional 4,021,385 shares during the last quarter. Advisors Preferred LLC bought a new stake in AES in the third quarter valued at about $867,000. Finally, Burns Matteson Capital Management LLC bought a new stake in AES in the fourth quarter valued at about $585,000. 93.13% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of brokerages recently weighed in on AES. Wall Street Zen upgraded AES from a "hold" rating to a "buy" rating in a report on Saturday, March 7th. Barclays reiterated an "equal weight" rating and issued a $15.00 target price on shares of AES in a report on Wednesday, February 4th. Susquehanna cut AES from a "positive" rating to a "neutral" rating and reduced their target price for the company from $16.00 to $15.00 in a report on Thursday, April 9th. Argus cut AES from a "buy" rating to a "hold" rating in a report on Thursday, March 26th. Finally, Morgan Stanley reiterated an "equal weight" rating and issued a $15.00 target price (down from $23.00) on shares of AES in a report on Friday, March 6th. Two analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $24.09.

About AES

AES Corporation is a global energy company focused on the generation and distribution of electricity across diversified markets. Headquartered in Arlington, Virginia, AES develops, builds and operates power plants and distribution systems that serve residential, industrial and commercial customers. The company's portfolio includes thermal, renewable and battery energy storage facilities designed to deliver reliable and sustainable electricity solutions.

Through its subsidiaries, AES operates a balanced mix of power generation assets, including natural gas, coal and renewables such as solar and wind.

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