Ameren (NYSE:AEE) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Friday, January 5th.
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. However, the company is investing heavily to upgrade its aging infrastructure.”
Several other brokerages have also recently weighed in on AEE. Morgan Stanley cut shares of Ameren from an “equal weight” rating to an “underweight” rating and set a $61.00 price target on the stock. in a research report on Wednesday, December 13th. ValuEngine cut shares of Ameren from a “buy” rating to a “hold” rating in a research report on Monday, December 4th. KeyCorp reaffirmed a “hold” rating on shares of Ameren in a report on Friday, October 20th. Finally, Bank of America initiated coverage on shares of Ameren in a report on Tuesday, October 24th. They issued a “neutral” rating and a $62.00 price target on the stock. Three investment analysts have rated the stock with a sell rating, five have given a hold rating and one has issued a strong buy rating to the company. Ameren has a consensus rating of “Hold” and a consensus target price of $56.80.
Ameren (NYSE:AEE) last issued its earnings results on Friday, November 3rd. The utilities provider reported $1.24 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $1.31 by ($0.07). Ameren had a net margin of 10.03% and a return on equity of 8.61%. The firm had revenue of $1.72 billion during the quarter, compared to analyst estimates of $1.87 billion. During the same quarter in the prior year, the business earned $1.52 earnings per share. The business’s quarterly revenue was down 7.3% on a year-over-year basis. equities research analysts predict that Ameren will post 2.8 earnings per share for the current fiscal year.
In other news, SVP Gregory L. Nelson sold 12,000 shares of the business’s stock in a transaction on Wednesday, November 22nd. The shares were sold at an average price of $62.68, for a total transaction of $752,160.00. Following the completion of the transaction, the senior vice president now directly owns 36,785 shares in the company, valued at approximately $2,305,683.80. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.38% of the stock is currently owned by insiders.
Several institutional investors and hedge funds have recently added to or reduced their stakes in AEE. Hexavest Inc. grew its position in Ameren by 2.0% in the fourth quarter. Hexavest Inc. now owns 423,357 shares of the utilities provider’s stock worth $24,974,000 after acquiring an additional 8,495 shares in the last quarter. Nisa Investment Advisors LLC grew its position in Ameren by 4.1% in the fourth quarter. Nisa Investment Advisors LLC now owns 83,655 shares of the utilities provider’s stock worth $4,935,000 after acquiring an additional 3,305 shares in the last quarter. Acropolis Investment Management LLC grew its position in Ameren by 101.9% in the fourth quarter. Acropolis Investment Management LLC now owns 3,392 shares of the utilities provider’s stock worth $200,000 after acquiring an additional 1,712 shares in the last quarter. First Citizens Bank & Trust Co. grew its position in Ameren by 8.3% in the fourth quarter. First Citizens Bank & Trust Co. now owns 36,148 shares of the utilities provider’s stock worth $2,132,000 after acquiring an additional 2,759 shares in the last quarter. Finally, QUANTRES ASSET MANAGEMENT Ltd purchased a new position in Ameren in the fourth quarter worth $1,068,000. Hedge funds and other institutional investors own 70.49% of the company’s stock.
Ameren Company Profile
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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