Zacks Investment Research downgraded shares of Ameren Corporation (NYSE:AEE) from a hold rating to a sell rating in a research note published on Tuesday.
According to Zacks, “Ameren Corp.'s aging infrastructure may pose risks to system reliability and force it to incur unplanned capital expenditures and operating costs. Stringent environmental regulations and operational risks might be potential growth deterrents. Also its stock is overvalued compared to its historical levels in terms of EV/EBITDA ratio. On the brighter note, the company follows a systematic investment strategy, primarily for growth projects and infrastructure upgrade, which enables it to provide reliable services to customers, besides meeting increasing demand.”
Other equities research analysts have also recently issued research reports about the company. BidaskClub upgraded Ameren Corporation from a hold rating to a buy rating in a research note on Friday, August 11th. Morgan Stanley boosted their price objective on Ameren Corporation from $56.00 to $57.00 and gave the company an overweight rating in a research note on Thursday, August 10th. Finally, Goldman Sachs Group, Inc. (The) cut Ameren Corporation from a neutral rating to a sell rating and set a $51.00 price objective for the company. in a research note on Monday, June 26th. Two equities research analysts have rated the stock with a sell rating, four have given a hold rating and one has assigned a strong buy rating to the stock. Ameren Corporation currently has a consensus rating of Hold and a consensus target price of $54.50.
Ameren Corporation (NYSE:AEE) opened at 60.41 on Tuesday. The company has a 50 day moving average of $59.39 and a 200 day moving average of $56.79. The stock has a market capitalization of $14.66 billion, a price-to-earnings ratio of 21.14 and a beta of 0.36. Ameren Corporation has a 12 month low of $46.97 and a 12 month high of $60.91.
Ameren Corporation (NYSE:AEE) last issued its quarterly earnings data on Friday, August 4th. The utilities provider reported $0.79 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.69 by $0.10. Ameren Corporation had a return on equity of 9.57% and a net margin of 11.11%. The company had revenue of $1.54 billion during the quarter, compared to analysts’ expectations of $1.42 billion. During the same quarter in the previous year, the business earned $0.61 earnings per share. The firm’s revenue for the quarter was up 7.8% on a year-over-year basis. On average, equities analysts predict that Ameren Corporation will post $2.80 EPS for the current year.
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The company also recently disclosed a quarterly dividend, which will be paid on Friday, December 29th. Shareholders of record on Wednesday, December 13th will be paid a $0.4575 dividend. This represents a $1.83 dividend on an annualized basis and a yield of 3.03%. This is a boost from Ameren Corporation’s previous quarterly dividend of $0.44. Ameren Corporation’s payout ratio is currently 61.54%.
Hedge funds and other institutional investors have recently modified their holdings of the business. Bessemer Group Inc. purchased a new stake in Ameren Corporation in the second quarter valued at approximately $111,000. Acropolis Investment Management LLC increased its holdings in shares of Ameren Corporation by 0.5% in the second quarter. Acropolis Investment Management LLC now owns 2,406 shares of the utilities provider’s stock valued at $132,000 after purchasing an additional 11 shares during the period. Benjamin F. Edwards & Company Inc. increased its holdings in shares of Ameren Corporation by 2.4% in the second quarter. Benjamin F. Edwards & Company Inc. now owns 2,408 shares of the utilities provider’s stock valued at $132,000 after purchasing an additional 56 shares during the period. V Wealth Management LLC acquired a new position in shares of Ameren Corporation in the second quarter valued at approximately $138,000. Finally, Tower Research Capital LLC TRC increased its holdings in shares of Ameren Corporation by 367.3% in the first quarter. Tower Research Capital LLC TRC now owns 2,612 shares of the utilities provider’s stock valued at $143,000 after purchasing an additional 2,053 shares during the period. Institutional investors own 69.80% of the company’s stock.
About Ameren Corporation
Ameren Corporation is a utility holding company. The Company’s subsidiaries include Ameren Missouri, Ameren Illinois and Ameren Transmission Company (ATXI). It operates through four segments. The Ameren Missouri segment includes all of the operations of Ameren Missouri. The Ameren Illinois Electric Distribution segment consists of the electric distribution business of Ameren Illinois.
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