UBS slashes price target on AES Corp. [AES] – find out why.

AES Corp. [NYSE: AES] stock went on an upward path that rose over 0.79% on Wednesday, amounting to a one-week price increase of more than 3.44%. The company report on February 14, 2024 at 7:00 AM that AES Announces Result of Final Remarketing of Series A Cumulative Perpetual Convertible Preferred Stock Relating to 2021 Equity Units Offering and Settlement Rate for Purchase Contract Component of 2021 Equity Units Offering.

The AES Corporation (NYSE: AES) (“AES” or the “Company”) announced today the unsuccessful final remarketing of its 0% Series A Cumulative Perpetual Convertible Preferred Stock, no par value, with a liquidation preference of $1,000 per share (the “Convertible Preferred Stock”), originally issued on March 11, 2021 as part of the Company’s equity units (the “2021 Equity Units”) and the settlement rate of the purchase contracts that form part of its corporate units (the “Corporate Units”).

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Each holder of a Corporate Unit will receive 3.8859 shares (the “Settlement Rate”) of AES common stock with cash to be paid in lieu of any fractional share. The Settlement Rate was determined based upon the daily volume weighted average of AES’ common stock over a consecutive 20-day trading period ending on February 13, 2024.

Over the last 12 months, AES stock dropped by -36.90%. The one-year AES Corp. stock forecast points to a potential upside of 25.18. The average equity rating for AES stock is currently 1.71, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $11.75 billion, with 710.16 million shares outstanding and 706.36 million shares in the current float. Compared to the average trading volume of 5.87M shares, AES stock reached a trading volume of 4480814 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on AES Corp. [AES]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for AES shares is $22.12 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 1.71. 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.

UBS have made an estimate for AES Corp. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on October 06, 2023. While these analysts kept the previous recommendation, Barclays raised their target price to Overweight. The new note on the price target was released on August 23, 2023, representing the official price target for AES Corp. stock. Previously, the target price had yet another drop from $24 to $23, while BofA Securities kept a Neutral rating on AES stock.

The Average True Range (ATR) for AES Corp. is set at 0.56, with the Price to Sales ratio for AES stock in the period of the last 12 months amounting to 0.92. The Price to Book ratio for the last quarter was 5.71, with the Price to Cash per share for the same quarter was set at 3.76.

AES Stock Performance Analysis:

AES Corp. [AES] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 3.44. With this latest performance, AES shares dropped by -1.37% in over the last four-week period, additionally sinking by -7.59% over the last 6 months – not to mention a drop of -36.90% 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 45.11, with the RSI for the last a single of trading hit 46.93, and the three-weeks RSI is set at 45.14 for AES Corp. [AES]. The present Moving Average for the last 50 days of trading for this stock 17.81, while it was recorded at 16.53 for the last single week of trading, and 18.22 for the last 200 days.

Insight into AES Corp. Fundamentals:

AES Corp.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.74 and a Current Ratio set at 0.83.

AES Stock EPS

With the latest financial reports released by the company, AES Corp. posted 0.49/share EPS, while the average EPS was predicted by analysts to be reported at 0.46/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 6.50%. 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 AES Corp. go to 7.50%.

AES Corp. [AES] Institutonal Ownership Details

The top three institutional holders of AES stocks are: VANGUARD GROUP INC with ownership of 1.3 billion shares, which is approximately 8.2815%. BLACKROCK INC., holding 1.03 billion shares of the stock with an approximate value of $176.59 billion in AES stocks shares; and BERKSHIRE HATHAWAY INC, currently with $156.75 billion in AES stock with ownership which is approximately 5.8325%.