Will The AES Corporation (NYSE:AES) rip to new highs anytime soon? Who knows, but much of it depends on what analysts believe and what action the company’s insiders pursue. The stock closed higher on 08 February. The shares accumulated 0.11 points or 0.64 percent at $17.22 with a light trade volume of 3.043 million shares. After opening the session at $17.08, the shares went as high as $17.2266 and as low as $17.0466, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $11.4 billion and now has 662 million shares outstanding. The AES Corporation (AES) stock has gained 14.65 percent of market value in 21 trading days.
AES stock has a trailing 3-year beta of 1.06, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $0.36 a share in the trailing twelve months. The stock’s value has surged 19.09 percent year to date (YTD) against a rise of 64.31 percent in 12 month’s time. The company’s shares still trade 0.53 percent away from its 1-year high of $17.13 and 74.56 percent up from 52-week low of $9.86. The average consensus rating on the company is 0, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.
The AES Corporation (AES) will probably climb -6.1 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $18 price as 12-month high target. This represents a whopping 4.53 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $16, which represents a return potential of -7.08 percent when compared to the closing price of the stock of $17.22 on Friday, February 08. The lowest price target for the stock is $14 — slightly more than -18.7 percent from AES’s current share price.
History has shown that shares in The AES Corporation have gone up on 18 different earnings reaction days and are predicted to add 0.02 percent when the company reports upcoming earnings. Investors will get their next glimpse of AES’s Q4 earnings on February 27. Analysts are forecasting revenue to climb 22.4 percent to $3.24B in the fiscal fourth quarter, while earnings are seen soaring by nearly -20.93 percent to $0.34 per share. It earned $0.35 per share, better than the $0.3, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $2.84B, worse than the $3.23B analysts expected. Earnings are estimated to increase by 12 percent this year, 8.62 percent next year and continue to increase by 10.3 percent annually for the next 5 years.
Let’s take a look at some insider activity at The AES Corporation (NYSE:AES) and see the pattern. The earliest insider trade took place on 12/26/2018. Ubben Jeffrey W gathered a total of 35 thousand shares of company at average share price of $13.75. The total for the purchase was set at $481.25 thousand. After this transaction, the account balance stood at 1.56 million shares. The stock grew 25.24 percent since that insider purchase. On 11/13/2017, Da Santos Bernerd, Sr. VP and COO, purchased 4.7 thousand shares at a price per share of $10.6. This added 49.82 thousand shares to the insider’s fortune and the stock saw a 62.45 percent rally in value since the news became public. This transaction left 120.64 thousand shares in the Sr. VP and COO account.
On 11/13/2017, EVP, General Counsel and Secy Miller Brian A performed a purchase transaction worth $99.66 thousand. This purchase at $10.49 each has added 9.5 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded 64.16 percent increase since the transaction was reported. The insider now is left with 269.85 thousand shares remaining in the account. O’Flynn Thomas M., who performs the EVP and CFO job, bought 9.5 thousand shares for $101.08 thousand. The acquisition occurred on 11/13/2017 was priced at $10.64 per share. The share price soared 61.84 percent since the reporting date. O’Flynn Thomas M. now left with a stake of 306.31 thousand AES stock worth $5.27 million after the insider buying.
The stock is currently hovering around the first support level of $17.1. Below this, the next support is placed in the zone of $16.99. Till the time, the AES stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 77.38 on daily chart, which may remain a cause for concern. If the price breaks below $16.99 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $17.28 mark may result into a pull-back move towards $17.35 level.
Shares of The AES Corporation (AES) are trading at a P/E ratio of 48.28 times earnings reported for the past 12 months. The industry AES operates in has an average P/E of 16.29. Its P/E ratio went as low as 14.14X and as high as 38.22 over the 5-year span.Further, it is sporting a 1.06 on the Price-to-Sales ratio. Compare this with the industry average P/S of 3.26. 23.9 percent is the gross profit margin for The AES Corporation and operating margin sits at 0 percent. Along with this, the net profit margin is 0 percent.