AES Corp. (AES) Shares Rise Despite Market Challenges

AES Corp. (NYSE: AES) has seen a rise in its stock price by 0.80 in relation to its previous close of 16.27. However, the company has experienced a -2.67% decline in its stock price over the last five trading sessions. InvestorPlace reported 2024-04-14 that The world economy is transitioning to a renewable energy narrative. This makes the demand for sustainable solutions and further emphasizes the potential of hydrogen as an alternative fuel source.

Is It Worth Investing in AES Corp. (NYSE: AES) Right Now?

AES Corp. (NYSE: AES) has a price-to-earnings ratio that is above its average at 50.08x. The stock has a 36-month beta value of 1.10. Opinions on the stock are mixed, with 4 analysts rating it as a “buy,” 1 as “overweight,” 4 as “hold,” and 0 as “sell.”

The public float for AES is 707.72M, and at present, short sellers hold a 1.95% of that float. On April 22, 2024, the average trading volume of AES was 9.01M shares.

AES’s Market Performance

AES’s stock has seen a -2.67% decrease for the week, with a 5.53% rise in the past month and a -2.90% fall in the past quarter. The volatility ratio for the week is 3.70%, and the volatility levels for the past 30 days are at 3.18% for AES Corp. The simple moving average for the past 20 days is -4.57% for AES’s stock, with a -5.38% simple moving average for the past 200 days.

Analysts’ Opinion of AES

Many brokerage firms have already submitted their reports for AES stocks, with Mizuho repeating the rating for AES by listing it as a “Buy.” The predicted price for AES in the upcoming period, according to Mizuho is $21 based on the research report published on April 18, 2024 of the current year 2024.

UBS, on the other hand, stated in their research note that they expect to see AES reach a price target of $13, previously predicting the price at $22. The rating they have provided for AES stocks is “Neutral” according to the report published on October 06th, 2023.

Barclays gave a rating of “Overweight” to AES, setting the target price at $25 in the report published on August 23rd of the previous year.

AES Trading at -0.19% from the 50-Day Moving Average

After a stumble in the market that brought AES to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -33.17% of loss for the given period.

Volatility was left at 3.18%, however, over the last 30 days, the volatility rate increased by 3.70%, as shares surge +4.06% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +0.49% upper at present.

During the last 5 trading sessions, AES fell by -2.67%, which changed the moving average for the period of 200-days by -23.54% in comparison to the 20-day moving average, which settled at $17.22. In addition, AES Corp. saw -14.81% in overturn over a single year, with a tendency to cut further losses.

Insider Trading

Reports are indicating that there were more than several insider trading activities at AES starting from Falu Ricardo Manuel, who purchase 6 shares at the price of $16.01 back on Mar 12 ’24. After this action, Falu Ricardo Manuel now owns 84,785 shares of AES Corp., valued at $96 using the latest closing price.

Falu Ricardo Manuel, the EVP, COO, Pres. New Enrgy Tech of AES Corp., purchase 73 shares at $19.21 during a trade that took place back on Dec 28 ’23, which means that Falu Ricardo Manuel is holding 84,779 shares at $1,402 based on the most recent closing price.

Stock Fundamentals for AES

Current profitability levels for the company are sitting at:

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

The net margin for AES Corp. stands at 0.02. The total capital return value is set at 0.07. Equity return is now at value 6.28, with 0.58 for asset returns.

Based on AES Corp. (AES), the company’s capital structure generated 0.87 points at debt to capital in total, while cash flow to debt ratio is standing at 0.11. The debt to equity ratio resting at 6.74. The interest coverage ratio of the stock is 3.82.

Currently, EBITDA for the company is -189.0 million with net debt to EBITDA at 10.51. When we switch over and look at the enterprise to sales, we see a ratio of 2.92. The receivables turnover for the company is 8.92for trailing twelve months and the total asset turnover is 0.28. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.68.

Conclusion

To sum up, AES Corp. (AES) has seen a bad performance recently. Analysts have differing views on the stock, with some seeing it as a “buy” and others as 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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