Wall Street Zen Upgrades Pampa Energia (NYSE:PAM) to Strong-Buy

Key Points

• Wall Street Zen upgraded Pampa Energia to “strong-buy” from “buy,” but the broader analyst consensus remains “Hold,” with an average price target of $103.83.
• Pampa Energia reported quarterly EPS of $2.50 on $746 million in revenue, with a 23.58% net margin and 15.33% return on equity.
• Insiders have been net sellers over the past three months, selling $18.7 million of shares versus $5.7 million purchased; insiders still own 55.52% of the company.

Pampa Energia (NYSE:PAM - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a report released on Saturday.

Several other analysts also recently issued reports on the company. JPMorgan Chase & Co. increased their price target on Pampa Energia from $97.50 to $101.50 and gave the company a "neutral" rating in a report on Monday, June 1st. Weiss Ratings restated a "hold (c)" rating on shares of Pampa Energia in a research note on Friday, June 12th. Finally, Zacks Research downgraded Pampa Energia from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 27th. Two research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $103.83.

Pampa Energia Price Performance

PAM opened at $79.03 on Friday. Pampa Energia has a 52-week low of $54.95 and a 52-week high of $94.50. The company has a 50 day moving average of $83.73 and a two-hundred day moving average of $83.33. The company has a market cap of $4.25 billion, a P/E ratio of 7.50, a P/E/G ratio of 0.27 and a beta of 0.97. The company has a quick ratio of 3.23, a current ratio of 3.64 and a debt-to-equity ratio of 0.64.

Pampa Energia (NYSE:PAM - Get Free Report) last issued its earnings results on Tuesday, June 30th. The utilities provider reported $2.50 EPS for the quarter. The business had revenue of $746.00 million for the quarter. Pampa Energia had a net margin of 23.58% and a return on equity of 15.33%. On average, analysts expect that Pampa Energia will post 10.68 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Marcos Marcelo Mindlin sold 1,800,000 shares of the company's stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $3.48, for a total value of $6,264,000.00. Following the completion of the transaction, the director directly owned 24,971,973 shares in the company, valued at approximately $86,902,466.04. This represents a 6.72% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Damian Miguel Mindlin sold 555,000 shares of the company's stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $3.55, for a total transaction of $1,970,250.00. Following the completion of the transaction, the insider owned 12,541,870 shares of the company's stock, valued at $44,523,638.50. This trade represents a 4.24% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have bought 1,685,694 shares of company stock worth $5,666,005 and have sold 5,357,000 shares worth $18,666,070. Insiders own 55.52% of the company's stock.

Hedge Funds Weigh In On Pampa Energia

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Wealth High Governance Asset Management Ltda. grew its stake in shares of Pampa Energia by 24.5% during the first quarter. Wealth High Governance Asset Management Ltda. now owns 24,714 shares of the utilities provider's stock valued at $2,187,000 after acquiring an additional 4,866 shares in the last quarter. Guardian Partners Inc. acquired a new position in shares of Pampa Energia in the first quarter worth about $620,000. ABS Direct Equity Fund LLC lifted its stake in shares of Pampa Energia by 183.3% in the first quarter. ABS Direct Equity Fund LLC now owns 73,961 shares of the utilities provider's stock worth $6,359,000 after acquiring an additional 47,856 shares in the last quarter. Absolute Gestao de Investimentos Ltda. boosted its holdings in Pampa Energia by 198.1% in the first quarter. Absolute Gestao de Investimentos Ltda. now owns 287,383 shares of the utilities provider's stock valued at $25,433,000 after purchasing an additional 190,963 shares during the last quarter. Finally, Modern Wealth Management LLC purchased a new position in Pampa Energia in the first quarter valued at about $371,000. 12.77% of the stock is owned by hedge funds and other institutional investors.

Pampa Energia Company Profile

Pampa Energía SA is Argentina's largest independent energy company, with integrated operations spanning electricity generation, transmission, distribution and oil and gas activities. The company holds a diversified portfolio of thermal and hydroelectric power plants, along with growing investments in renewable energy projects, serving both domestic and regional markets.

In its electricity business, Pampa Energía develops and operates plants that supply energy to Argentina's power grid.

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