Zacks Investment Research Downgrades Pinnacle West Capital Co. (PNW) to Hold

Zacks Investment Research lowered shares of Pinnacle West Capital Co. (NYSE:PNW) from a buy rating to a hold rating in a research note published on Tuesday, July 11th.

According to Zacks, “Pinnacle West Capital is well positioned to reap the benefits of ongoing economic improvement in its service territories. Better economic prospects, increase in the customer count and higher customer spending are expected to drive earnings. The company is also expanding its renewable generation portfolio. Shares of Pinnacle West have outperformed Zacks categorized Utility-Electric Power industry in the last six months. However, the company is subject to comprehensive regulations by federal, state and local regulatory agencies. In addition, its operations are subject to fluctuations in commodity price, as well as operational risks and hazards. Cost of complying with new regulations could increase cost of operations while failure to meet the same might impact its business plans.”

Other analysts also recently issued reports about the company. BMO Capital Markets restated a hold rating and set a $86.00 target price on shares of Pinnacle West Capital in a research note on Wednesday, May 17th. Morgan Stanley decreased their price target on Pinnacle West Capital from $83.00 to $82.00 and set an underweight rating for the company in a research note on Monday, May 8th. Finally, BidaskClub downgraded Pinnacle West Capital from a buy rating to a hold rating in a research note on Saturday, June 24th. One research analyst has rated the stock with a sell rating and ten have given a hold rating to the company’s stock. Pinnacle West Capital has an average rating of Hold and an average target price of $81.89.

Shares of Pinnacle West Capital (NYSE PNW) opened at 88.53 on Tuesday. The company has a market capitalization of $9.88 billion, a P/E ratio of 19.55 and a beta of 0.37. Pinnacle West Capital has a 1-year low of $70.86 and a 1-year high of $89.56. The firm’s 50 day moving average price is $86.48 and its 200-day moving average price is $84.31.

Pinnacle West Capital (NYSE:PNW) last announced its quarterly earnings results on Thursday, August 3rd. The utilities provider reported $1.49 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.16 by $0.33. Pinnacle West Capital had a return on equity of 13.86% and a net margin of 18.24%. The firm had revenue of $944.59 million during the quarter, compared to the consensus estimate of $921.79 million. During the same period in the prior year, the firm earned $1.08 EPS. The firm’s quarterly revenue was up 3.2% compared to the same quarter last year. Analysts expect that Pinnacle West Capital will post $4.27 EPS for the current year.

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The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 1st. Shareholders of record on Tuesday, August 1st will be given a dividend of $0.655 per share. This represents a $2.62 annualized dividend and a yield of 2.96%. The ex-dividend date is Friday, July 28th. Pinnacle West Capital’s payout ratio is 57.96%.

In related news, SVP Daniel T. Froetscher sold 2,800 shares of Pinnacle West Capital stock in a transaction on Friday, May 26th. The shares were sold at an average price of $87.31, for a total value of $244,468.00. Following the completion of the sale, the senior vice president now owns 8,568 shares of the company’s stock, valued at approximately $748,072.08. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, SVP Barbara M. Gomez sold 1,900 shares of the business’s stock in a transaction on Tuesday, May 16th. The stock was sold at an average price of $84.00, for a total transaction of $159,600.00. The disclosure for this sale can be found here. Company insiders own 0.70% of the company’s stock.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in PNW. WealthTrust Arizona LLC raised its position in Pinnacle West Capital by 0.7% in the first quarter. WealthTrust Arizona LLC now owns 1,244 shares of the utilities provider’s stock worth $104,000 after buying an additional 9 shares in the last quarter. Northwest Investment Counselors LLC bought a new position in Pinnacle West Capital during the second quarter valued at about $106,000. Captrust Financial Advisors bought a new position in Pinnacle West Capital during the second quarter valued at about $109,000. Tompkins Financial Corp increased its position in Pinnacle West Capital by 15.4% in the first quarter. Tompkins Financial Corp now owns 1,500 shares of the utilities provider’s stock valued at $113,000 after buying an additional 200 shares during the last quarter. Finally, Amica Retiree Medical Trust increased its position in Pinnacle West Capital by 128.0% in the first quarter. Amica Retiree Medical Trust now owns 1,496 shares of the utilities provider’s stock valued at $125,000 after buying an additional 840 shares during the last quarter. 83.02% of the stock is owned by hedge funds and other institutional investors.

Pinnacle West Capital Company Profile

Pinnacle West Capital Corporation is a holding company that operates through its subsidiaries. The Company operates through regulated electricity segment, which consists of traditional regulated retail and wholesale electricity businesses and related activities, and includes electricity generation, transmission and distribution.

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