Jefferies has recently initiated AES Corp (AES) stock to Buy rating, as announced on September 11, 2024, according to Finviz. Earlier, on May 21, 2024, Seaport Research Partners had reduced the stock from a Buy to Neutral. Mizuho also initiated Buy rating with a price target of $21. Additionally, UBS reduced Neutral rating on October 6, 2023, with a target price of $13. Barclays analysts, in their report published on August 23, 2023, also initiated Overweight rating and set a price target of $25 for AES Corp’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
AES Corp (AES) Stock Trading Recap
On Friday, AES Corp (AES) stock saw a modest uptick, ending the day at $17.47 which represents a slight increase of $0.22 or 1.28% from the prior close of $17.25. The stock opened at $17.38 and touched a low of $17.19 during the day, reaching a high of $17.47. The volume of shares traded was 4.42 million falling short of the average volume of 8.17 million.
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AES Stock Performance and Moving Averages
In recent trading, AES Corp (AES) stock price has shown some volatility, fluctuating 0.87% over the last five trades and -7.57% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 6.52%, and it has plunged by -0.29% in the previous three months. Currently, AES is trading at -6.21%, -2.80%, and -2.02% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, AES, a Utilities sector stock, is trading -21.34% below its 52-week high but remains 28.93% above its 52-week low. The Average True Range (ATR) (14 days) of 0.54 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
AES Corp’s Profitability and Valuation Ratios
AES Corp’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 18.63% and a profit margin of 6.06%, with a gross margin of 6.52%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, AES Corp’s market capitalization stands at $12.42 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 16.67, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 8.4. Additionally, the Price-to-Sales Ratio is 1, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 4.02, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.22% of AES Corp (AES)’s shares, while financial institutions hold 97.41%.
Notable insider trades include Kohan Sherry, SVP & Chief Accounting Officer at AES Corp (AES), who sold 15000 shares on Jun 06 ’24, at $20.35 each, totaling $0.31 million. On May 20 ’24, Da Santos Bernerd, EVP and President, Renewables, sold 66250 shares for $21.15 each, amounting to $1.40 million. Additionally, on May 20 ’24, Mendoza Tish sold 66250 shares at $21.21 each, generating $1.41 million.