The AES Corporation [NYSE: AES] gained 0.50% or 0.14 points to close at $28.39 with a heavy trading volume of 3876957 shares. The company report on April 15, 2021 that AES Recommends Rejection of TRC Capital’s Conditional Mini-Tender Offer to Acquire 0.598% of Outstanding Shares.
The AES Corporation (NYSE: AES) announced that it has been notified of an unsolicited “mini-tender” offer by TRC Capital Investment Corporation to purchase up to 4,000,000 shares of AES’ common stock, or approximately 0.598% of outstanding shares, at a price of $26.50 per share. This price is approximately 6.6% below the closing price of AES’ common stock on April 14, 2021 ($28.37, the day prior to this release), and a 4.4% discount to the closing price of AES’ common stock on the date of the tender offer ($27.72 on April 9, 2021).
AES does not endorse TRC Capital’s offer and recommends that AES’ stockholders reject the offer and not tender their shares in response to TRC Capital’s unsolicited mini-tender offer. This mini-tender offer is at a discount below the market price for AES’ shares (as shown above) and is subject to numerous conditions, including TRC Capital’s ability to obtain financing. AES is not associated in any way with TRC Capital, its mini-tender offer or the offer documentation. AES believes that TRC Capital’s offer is an opportunistic attempt by TRC Capital to purchase shares at a discount to the market price.
It opened the trading session at $28.03, the shares rose to $28.43 and dropped to $27.84, the range by which the price of stock traded the whole day. The daily chart for AES points out that the company has recorded 42.66% gains over the past six months. However, it is still -158.09% lower than its most recent low trading price.
If we look at the average trading volume of 7.00M shares, AES reached to a volume of 3876957 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about The AES Corporation [AES]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for AES shares is $30.36 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on AES stock is a recommendation set at 2.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Seaport Global Securities have made an estimate for The AES Corporation shares, keeping their opinion on the stock as Buy, with their previous recommendation back on May 20, 2020. While these analysts kept the previous recommendation, RBC Capital Mkts dropped their target price from $22 to $18. The new note on the price target was released on April 02, 2020, representing the official price target for The AES Corporation stock. Previously, the target price had yet another raise to $15, while BofA/Merrill analysts kept a Buy rating on AES stock. On March 23, 2020, analysts decreased their price target for AES shares from 19 to 16.50.
The Average True Range (ATR) for The AES Corporation is set at 0.63, with the Price to Sales ratio for AES stock in the period of the last 12 months amounting to 1.96. The Price to Book ratio for the last quarter was 7.17, with the Price to Cash per share for the same quarter was set at 2.14. Price to Free Cash Flow for AES in the course of the last twelve months was 50.95 with Quick ratio for the last quarter at 0.90.
Trading performance analysis for AES stock
The AES Corporation [AES] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 0.07. With this latest performance, AES shares gained by 9.36% in over the last four-week period, additionally plugging by 42.66% over the last 6 months – not to mention a rise of 127.85% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for AES stock in for the last two-week period is set at 59.97, with the RSI for the last a single of trading hit 63.04, and the three-weeks RSI is set at 58.05 for The AES Corporation [AES]. The present Moving Average for the last 50 days of trading for this stock 27.35, while it was recorded at 28.43 for the last single week of trading, and 21.85 for the last 200 days.
The AES Corporation [AES]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and The AES Corporation [AES] shares currently have an operating margin of +26.18 and a Gross Margin at +27.89. The AES Corporation’s Net Margin is presently recorded at +0.45.
Return on Total Capital for AES is now 9.66, given the latest momentum, and Return on Invested Capital for the company is 0.19. Return on Equity for this stock inclined to 1.16, with Return on Assets sitting at 0.13. When it comes to the capital structure of this company, The AES Corporation [AES] has a Total Debt to Total Equity ratio set at 575.90. Additionally, AES Total Debt to Total Capital is recorded at 85.20, with Total Debt to Total Assets ending up at 58.35. Long-Term Debt to Equity for the company is recorded at 711.62, with the Long-Term Debt to Total Capital now at 79.10.
Reflecting on the efficiency of the workforce at the company, The AES Corporation [AES] managed to generate an average of $5,244 per employee. Receivables Turnover for the company is 6.34 with a Total Asset Turnover recorded at a value of 0.28.The AES Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.90 and a Current Ratio set at 1.00.
The AES Corporation [AES]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, The AES Corporation posted 0.29/share EPS, while the average EPS was predicted by analysts to be reported at 0.29/share. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for AES. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for The AES Corporation go to 8.15%.
An analysis of insider ownership at The AES Corporation [AES]
There are presently around $17,609 million, or 96.40% of AES stock, in the hands of institutional investors. The top three institutional holders of AES stocks are: VANGUARD GROUP INC with ownership of 83,183,382, which is approximately -1.688% of the company’s market cap and around 0.30% of the total institutional ownership; CAPITAL WORLD INVESTORS, holding 80,069,614 shares of the stock with an approximate value of $2.27 billion in AES stocks shares; and FMR LLC, currently with $1.27 billion in AES stock with ownership of nearly 39.669% of the company’s market capitalization.
Positions in The AES Corporation stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 254 institutional holders increased their position in The AES Corporation [NYSE:AES] by around 60,558,978 shares. Additionally, 281 investors decreased positions by around 44,544,136 shares, while 72 investors held positions by with 515,165,596 shares. The mentioned changes placed institutional holdings at 620,268,710 shares, according to the latest SEC report filing. AES stock had 83 new institutional investments in for a total of 15,632,481 shares, while 52 institutional investors sold positions of 9,015,158 shares during the same period.