Ameren Corporation (NYSE:AEE) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued to investors on Tuesday, November 7th.
According to Zacks, “Ameren Corp.’s third-quarter earnings missed the Zacks Consensus Estimate and also declined year over year. The company’s top-line result also reflected dismal figures on an annual basis. Ameren Corp. follows a systematic investment strategy, primarily for growth projects and infrastructure upgrade, which enables it to provide reliable services to customers, besides meeting the increasing demand. Its solid cash generating capacity allows it to invest substantially. Moreover the company outperformed the broader industry over the last year. However, its 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.”
A number of other analysts also recently commented on AEE. Morgan Stanley reiterated an “overweight” rating on shares of Ameren in a research report on Monday, July 10th. BidaskClub upgraded Ameren from a “sell” rating to a “hold” rating in a research report on Wednesday, July 19th. KeyCorp restated a “hold” rating on shares of Ameren in a research report on Friday, October 20th. Finally, Bank of America Corporation started coverage on Ameren in a research report on Tuesday, October 24th. They issued a “neutral” rating and a $62.00 price objective on the stock. One research analyst has rated the stock with a sell rating, six have given a hold rating, one has assigned a buy rating and one has issued a strong buy rating to the company. Ameren currently has an average rating of “Hold” and a consensus price target of $56.00.
Ameren (NYSE:AEE) last posted its quarterly earnings results on Friday, November 3rd. The utilities provider reported $1.24 earnings per share for the quarter, missing the Zacks’ consensus estimate of $1.31 by ($0.07). The business had revenue of $1.72 billion during the quarter, compared to analysts’ expectations of $1.87 billion. Ameren had a net margin of 10.03% and a return on equity of 8.61%. The firm’s quarterly revenue was down 7.3% compared to the same quarter last year. During the same quarter last year, the firm earned $1.52 earnings per share. analysts expect that Ameren will post 2.81 earnings per share for the current fiscal year.
In other Ameren news, SVP Gregory L. Nelson sold 12,000 shares of the company’s stock in a transaction dated Wednesday, November 22nd. The stock was sold at an average price of $62.68, for a total transaction of $752,160.00. Following the completion of the sale, the senior vice president now directly owns 36,785 shares in the company, valued at $2,305,683.80. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 0.38% of the company’s stock.
A number of institutional investors and hedge funds have recently modified their holdings of the stock. APG Asset Management N.V. lifted its holdings in Ameren by 463.6% during the 3rd quarter. APG Asset Management N.V. now owns 3,462,798 shares of the utilities provider’s stock worth $200,288,000 after buying an additional 2,848,400 shares during the last quarter. Janus Henderson Group PLC lifted its holdings in Ameren by 6,693.2% during the 2nd quarter. Janus Henderson Group PLC now owns 1,950,938 shares of the utilities provider’s stock worth $106,658,000 after buying an additional 1,922,219 shares during the last quarter. Ameriprise Financial Inc. lifted its holdings in Ameren by 24.8% during the 2nd quarter. Ameriprise Financial Inc. now owns 2,972,940 shares of the utilities provider’s stock worth $162,535,000 after buying an additional 590,243 shares during the last quarter. Canada Pension Plan Investment Board lifted its holdings in Ameren by 452.5% during the 3rd quarter. Canada Pension Plan Investment Board now owns 678,763 shares of the utilities provider’s stock worth $39,260,000 after buying an additional 555,900 shares during the last quarter. Finally, Wells Fargo & Company MN lifted its holdings in Ameren by 12.9% during the 3rd quarter. Wells Fargo & Company MN now owns 4,478,768 shares of the utilities provider’s stock worth $259,053,000 after buying an additional 511,854 shares during the last quarter. 70.52% of the stock is owned by hedge funds and other institutional investors.
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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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