Healthy Upside Potential: Algonquin Power & Utilities Corp. (AQN)

Algonquin Power & Utilities Corp. (NYSE: AQN) stock fell -0.63% on Friday to $12.67 against a previous-day closing price of $12.75. With 1.9 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.62 million shares. During the session, the Utilities – Renewable company that operates in wider Utilities sector, reached to the highest price of $12.73 whereas the lowest price it dropped to was $12.57. The 52-week range on AQN shows that it touched its highest point at $16.01 and its lowest point at $12.69 during that stretch. It currently has a 1-year price target of $16.33. With its current market cap of 11.60 billion, AQN has annualized dividend of $0.92 while the current yield stands at 7.28%. Beta for the stock currently stands at 0.30.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of AQN was down-trending over the past week, with a drop of -5.52%, but this was down by -10.96% over a month. Three-month performance dropped to -6.29% while six-month performance fell -16.37%. The stock lost -17.14% in the past year, while it has lost -12.32% so far this year. A look at the trailing 12-month EPS for AQN yields 0.39 with Next year EPS estimates of 0.81. For the next quarter, that number is 0.17. This implies an EPS growth rate of -70.60% for this year and 8.76% for next year. EPS is expected to grow by 7.85% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -1.50%.

Float and Shares Shorts:

At present, 677.82 million AQN shares are outstanding with a float of 677.45 million shares on hand for trading. On Jul 14, 2022, short shares totaled 15.27 million, which was 2.26% higher than short shares on Jun 14, 2022. In addition to Mr. Arun Banskota as the firm’s Pres, CEO & Director, Mr. Arthur Kacprzak serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 43.32% of AQN’s outstanding shares, institutional investors have minority control over the company. Other institutions hold — of AQN, in contrast to — held by mutual funds. Shares owned by individuals account for –. With a 1.31% stake in AQN, the Vanguard Total International Stoc is the largest stakeholder. A total of 8,849,333 shares are owned by the mutual fund manager. The Government Pension Fund – Global, which owns about 1.29% of AQN stock, is the second-largest Mutual Fund holder. It holds 8,695,690 shares valued at 119.22 million. BMO Dividend Fund holds 1.25% of the stake in AQN, owning 8,472,900 shares worth 116.16 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AQN since 13 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 6 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With AQN analysts setting a high price target of $18.00 and a low target of $13.55, the average target price over the next 12 months is $16.04. Based on these targets, AQN could surge 42.07% to reach the target high and rise by 6.95% to reach the target low. Reaching the average price target will result in a growth of 26.6% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. AQN will report FY 2022 earnings on 03/02/2023. Analysts have provided yearly estimates in a range of $0.76 being high and $0.71 being low. For AQN, this leads to a yearly average estimate of $0.74. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Algonquin Power & Utilities Corp. surprised analysts by $0.01 when it reported $0.16 EPS against a consensus estimate of $0.15. The surprise factor in the prior quarter was -$0.00. Based on analyst estimates, the high estimate for the next quarter is $0.18 and the low estimate is $0.16. The average estimate for the next quarter is thus $0.17.

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