JP Morgan has recently initiated PPL Corp (PPL) stock to Overweight rating, as announced on October 25, 2024, according to Finviz. Earlier, on September 20, 2024, Jefferies had initiated the stock to Buy, setting a price target of $38. Argus also raised Buy rating with a price target of $30. Additionally, UBS reduced Neutral rating on October 4, 2023, with a target price of $25. Barclays analysts, in their report published on August 23, 2023, also initiated Equal Weight rating and set a price target of $26 for PPL Corp’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
PPL Corp (PPL) Stock Trading Recap
On Tuesday, PPL Corp (PPL) stock saw a modest uptick, ending the day at $34.14 which represents a slight increase of $0.14 or 0.41% from the prior close of $34. The stock opened at $33.86 and touched a low of $33.71 during the day, reaching a high of $34.16. The volume of shares traded was 7.43 million exceeding the average volume of 4.63 million.
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PPL Stock Performance and Moving Averages
In recent trading, PPL Corp (PPL) stock price has shown some volatility, fluctuating 2.71% over the last five trades and 4.31% 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 14.41%, and it has gained 8.21% in the previous three months. Currently, PPL is trading at 3.85%, 4.72%, and 15.99% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, PPL, a Utilities sector stock, is trading 0.28% below its 52-week high but remains 34.67% above its 52-week low. The Average True Range (ATR) (14 days) of 0.55 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.
PPL Corp’s Profitability and Valuation Ratios
PPL Corp’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 21.64% and a profit margin of 9.93%, with a gross margin of 14.41%. 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, PPL Corp’s market capitalization stands at $25.19 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 30.7, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 18.72. Additionally, the Price-to-Sales Ratio is 3.04, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 1.79, 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 0.29% of PPL Corp (PPL)’s shares, while financial institutions hold 78.26%.
Notable insider trades include Henninger Tadd J, SVP-Finance and Treasurer at PPL Corp (PPL), who sold 4782 shares on Aug 29 ’24, at $31.74 each, totaling $0.15 million.
