AES (NYSE:AES) Hits New 52-Week Low - Should You Sell?

The AES Corporation (NYSE:AES) has recently experienced a drop in its stock price, hitting a new 52-week low of $12.52 during trading on Wednesday. The shares closed at $12.59, with a total trading volume of over 8.6 million shares. This decline in price represents a significant dip from its previous close of $12.87.

Analyst Ratings Changes

In recent days, there have been several updates from analysts regarding AES's stock. Jefferies Financial Group started off the coverage with a "buy" rating and set a price target of $20.00 as of September 11. Barclays followed by lowering their price target from $23.00 to $17.00, while maintaining an "overweight" rating as of December 13. On the same date, HSBC initiated coverage with a "buy" rating and a $17.00 price target. Meanwhile, Susquehanna adjusted their price target from $24.00 to $21.00, issuing a "positive" rating on November 5. Evercore ISI upgraded the stock to a "strong-buy" on September 18. Overall, one research analyst has issued a sell rating, two have assigned a hold rating, eight are recommending a buy, and one has given a strong buy rating, leading to a consensus rating of "Moderate Buy" with a target price of $19.30 according to MarketBeat.com.

AES Price Performance

The financial metrics of AES indicate a debt-to-equity ratio of 3.21, with a current ratio of 0.85 and a quick ratio of 0.80. The 50-day moving average price stands at $14.78, while the 200-day moving average is $16.97. AES has a market capitalization of approximately $8.89 billion, a price-to-earnings (P/E) ratio of 8.68, a P/E/G ratio of 0.71, and a beta of 1.01. Their most recent earnings report, released on October 31, showed earnings per share (EPS) of $0.71, which exceeded the expected EPS of $0.60 by $0.11. AES reported revenue of $3.29 billion, slightly below the consensus estimate of $3.46 billion, with a net margin of 8.34% and a return on equity of 27.30%. However, the company's revenue saw a decrease of 4.2% compared to the previous year.

AES Increases Dividend

In a positive development, AES has recently announced an increase in its quarterly dividend. Shareholders of record on January 31 will receive a dividend of $0.176 per share on February 14, up from the previous dividend of $0.17. This new dividend represents an annual yield of 5.63% with a payout ratio of 48.61%.

Institutional Trading of AES

AES has seen a number of changes in its institutional and hedge fund holdings recently. Rothschild Investment LLC acquired a new position valued at around $28,000 during the second quarter. Meanwhile, Millburn Ridgefield Corp also purchased a stake during the third quarter for the same amount. UMB Bank n.a. increased its holdings by 102.3% in the second quarter, holding 1,776 shares worth roughly $31,000 after buying additional shares. Other investors, such as nVerses Capital LLC and Cromwell Holdings LLC, have also made recent investments in AES, indicating strong institutional interest, with 93.13% of the stock owned by institutional investors and hedge funds.

About AES

The AES Corporation operates as a diversified power generation and utility company both domestically and internationally. The company is involved in generating and selling electricity to various customers, including utilities and industrial users, as well as managing utilities for electricity distribution and transmission.

Should You Invest $1,000 in AES Right Now?

Before making an investment in AES, it is advised to evaluate your options. Despite the current "Moderate Buy" rating, market analysts are suggesting that there may be better buying opportunities elsewhere. Investors are encouraged to examine multiple stocks that top analysts predict are worth investing in before making any decisions on AES.

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