Atlantica Sustainable Infrastructure Plc (AY) Shares Decline Despite Market Challenges

Atlantica Sustainable Infrastructure Plc (NASDAQ: AY) has seen a decline in its stock price by -2.43 in relation to its previous close of 18.50. However, the company has experienced a -1.04% decline in its stock price over the last five trading sessions. Seeking Alpha reported 2024-04-02 that Atlantica Sustainable Infrastructure’s stock continues to underperform the market. Despite the attractive and still stable dividend, the Stock is down due to subpar Q4 2023 results and a weaker outlook. I do not see any major risks for AY that could cause the dividend to get cut in 2024.

Is It Worth Investing in Atlantica Sustainable Infrastructure Plc (NASDAQ: AY) Right Now?

Atlantica Sustainable Infrastructure Plc (NASDAQ: AY) has a higher price-to-earnings ratio of 44.43x compared to its average ratio, The 36-month beta value for AY is at 0.95. Analysts have varying views on the stock, with 1 analysts rating it as a “buy,” 2 rating it as “overweight,” 3 as “hold,” and 0 as “sell.”

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The public float for AY is 67.01M, and currently, shorts hold a 3.98% of that float. The average trading volume for AY on April 04, 2024 was 767.26K shares.

AY’s Market Performance

AY’s stock has seen a -1.04% decrease for the week, with a 3.26% rise in the past month and a -15.18% fall in the past quarter. The volatility ratio for the week is 2.66%, and the volatility levels for the past 30 days are at 2.50% for Atlantica Sustainable Infrastructure Plc The simple moving average for the last 20 days is 0.85% for AY stock, with a simple moving average of -11.31% for the last 200 days.

Analysts’ Opinion of AY

UBS, on the other hand, stated in their research note that they expect to see AY reach a price target of $25, previously predicting the price at $19. The rating they have provided for AY stocks is “Buy” according to the report published on March 22nd, 2024.

Raymond James gave a rating of “Mkt Perform” to AY, setting the target price at $25 in the report published on October 26th of the previous year.

AY Trading at -2.00% from the 50-Day Moving Average

After a stumble in the market that brought AY to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -39.45% of loss for the given period.

Volatility was left at 2.50%, however, over the last 30 days, the volatility rate increased by 2.66%, as shares surge +3.56% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -7.44% lower at present.

During the last 5 trading sessions, AY fell by -1.04%, which changed the moving average for the period of 200-days by -24.89% in comparison to the 20-day moving average, which settled at $17.93. In addition, Atlantica Sustainable Infrastructure Plc saw -16.05% in overturn over a single year, with a tendency to cut further losses.

Stock Fundamentals for AY

Current profitability levels for the company are sitting at:

  • 0.24 for the present operating margin
  • 0.61 for the gross margin

The net margin for Atlantica Sustainable Infrastructure Plc stands at 0.04. The total capital return value is set at 0.03. Equity return is now at value 2.87, with 0.49 for asset returns.

Based on Atlantica Sustainable Infrastructure Plc (AY), the company’s capital structure generated 0.79 points at debt to capital in total, while cash flow to debt ratio is standing at 0.07. The debt to equity ratio resting at 3.8. The interest coverage ratio of the stock is 0.78.

Currently, EBITDA for the company is 667.79 million with net debt to EBITDA at 7.07. When we switch over and look at the enterprise to sales, we see a ratio of 6.49. The receivables turnover for the company is 4.02for trailing twelve months and the total asset turnover is 0.13. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.62.

Conclusion

In conclusion, Atlantica Sustainable Infrastructure Plc (AY) has had a bad performance lately. Opinion on the stock among analysts is mixed, with some giving it a “buy” rating and others a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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