Pinnacle West Capital (NYSE:PNW) Sets New 1-Year High After Strong Earnings

Pinnacle West Capital Co. (NYSE:PNW) shares hit a new 52-week high during mid-day trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $92.07 and last traded at $92.01, with a volume of 710783 shares. The stock had previously closed at $86.71.

The utilities provider reported $3.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.35 by $0.02. The business had revenue of $1.77 billion during the quarter, compared to analysts’ expectations of $1.68 billion. Pinnacle West Capital had a return on equity of 9.75% and a net margin of 12.65%.

Pinnacle West Capital Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, December 2nd. Investors of record on Monday, November 4th will be issued a $0.895 dividend. This is a boost from Pinnacle West Capital’s previous quarterly dividend of $0.88. The ex-dividend date is Monday, November 4th. This represents a $3.58 dividend on an annualized basis and a yield of 3.90%. Pinnacle West Capital’s dividend payout ratio is presently 67.80%.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on the company. Jefferies Financial Group assumed coverage on Pinnacle West Capital in a research note on Thursday, September 19th. They set a “buy” rating and a $104.00 price objective for the company. Wells Fargo & Company upped their price target on Pinnacle West Capital from $90.00 to $92.00 and gave the company an “equal weight” rating in a research report on Thursday. StockNews.com upgraded Pinnacle West Capital from a “sell” rating to a “hold” rating in a research report on Monday, August 5th. Finally, Morgan Stanley increased their price objective on Pinnacle West Capital from $78.00 to $83.00 and gave the stock an “equal weight” rating in a research report on Wednesday, September 25th. Seven research analysts have rated the stock with a hold rating and six have assigned a buy rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $80.96.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in PNW. Prospera Private Wealth LLC acquired a new stake in shares of Pinnacle West Capital in the third quarter valued at $43,000. PNC Financial Services Group Inc. raised its stake in shares of Pinnacle West Capital by 3.8% in the third quarter. PNC Financial Services Group Inc. now owns 65,736 shares of the utilities provider’s stock valued at $5,824,000 after acquiring an additional 2,433 shares in the last quarter. Verity & Verity LLC raised its stake in shares of Pinnacle West Capital by 0.4% in the third quarter. Verity & Verity LLC now owns 90,286 shares of the utilities provider’s stock valued at $7,998,000 after acquiring an additional 354 shares in the last quarter. Quest Partners LLC acquired a new stake in shares of Pinnacle West Capital in the third quarter valued at $2,532,000. Finally, Natixis Advisors LLC raised its stake in shares of Pinnacle West Capital by 1.5% in the third quarter. Natixis Advisors LLC now owns 23,221 shares of the utilities provider’s stock valued at $2,057,000 after acquiring an additional 342 shares in the last quarter. 91.51% of the stock is currently owned by institutional investors and hedge funds.

Pinnacle West Capital Stock Performance

The firm has a market capitalization of $10.43 billion, a price-to-earnings ratio of 17.39, a PEG ratio of 2.13 and a beta of 0.52. The company has a debt-to-equity ratio of 1.28, a current ratio of 0.66 and a quick ratio of 0.48. The firm has a 50 day moving average price of $88.43 and a 200-day moving average price of $82.73.

Pinnacle West Capital Company Profile

Pinnacle West Capital Corporation, through its subsidiary, provides retail and wholesale electric services primarily in the state of Arizona. The company engages in the generation, transmission, and distribution of electricity using coal, nuclear, gas, oil, and solar generating facilities. Its transmission facilities include overhead lines and underground lines; and distribution facilities consist of overhead lines and underground primary cables.