Pinnacle West Capital (PNW) Downgraded to “Sell” at Zacks Investment Research

Zacks Investment Research cut shares of Pinnacle West Capital (NYSE:PNW) from a hold rating to a sell rating in a report published on Monday.

According to Zacks, “In last six months, shares of Pinnacle West have lost its value compared with growth of its industry. Pinnacle West 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. However, Pinnacle West is well positioned to gain from the 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.   “

PNW has been the subject of several other reports. SunTrust Banks reaffirmed a hold rating and issued a $88.00 price objective on shares of Pinnacle West Capital in a report on Thursday, December 21st. Bank of America downgraded shares of Pinnacle West Capital from a neutral rating to an underperform rating and set a $84.00 price objective for the company. in a report on Wednesday, January 3rd. ValuEngine downgraded shares of Pinnacle West Capital from a buy rating to a hold rating in a report on Tuesday, December 19th. Credit Suisse Group began coverage on shares of Pinnacle West Capital in a report on Wednesday, September 20th. They issued a neutral rating and a $90.00 price objective for the company. Finally, Morgan Stanley raised their price objective on shares of Pinnacle West Capital from $90.00 to $91.00 and gave the stock an underweight rating in a report on Wednesday, December 13th. Three analysts have rated the stock with a sell rating, nine have given a hold rating and one has issued a buy rating to the company’s stock. Pinnacle West Capital currently has an average rating of Hold and a consensus price target of $86.40.

Shares of Pinnacle West Capital (NYSE:PNW) traded down $0.65 during mid-day trading on Monday, hitting $79.92. 432,700 shares of the stock traded hands, compared to its average volume of 663,825. The company has a debt-to-equity ratio of 0.85, a quick ratio of 0.68 and a current ratio of 0.90. Pinnacle West Capital has a 12 month low of $75.79 and a 12 month high of $92.48. The stock has a market cap of $8,920.00, a price-to-earnings ratio of 17.26, a P/E/G ratio of 5.89 and a beta of 0.38.

Pinnacle West Capital (NYSE:PNW) last issued its quarterly earnings results on Friday, November 3rd. The utilities provider reported $2.46 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $2.33 by $0.13. The company had revenue of $1.18 billion during the quarter, compared to analyst estimates of $1.21 billion. Pinnacle West Capital had a net margin of 14.67% and a return on equity of 10.31%. Pinnacle West Capital’s quarterly revenue was up 1.4% compared to the same quarter last year. During the same quarter last year, the business posted $2.35 EPS. equities research analysts anticipate that Pinnacle West Capital will post 4.28 earnings per share for the current fiscal year.

The company also recently declared a quarterly dividend, which will be paid on Thursday, March 1st. Shareholders of record on Thursday, February 1st will be issued a $0.695 dividend. This represents a $2.78 annualized dividend and a yield of 3.48%. The ex-dividend date of this dividend is Wednesday, January 31st. Pinnacle West Capital’s payout ratio is 60.04%.

In other Pinnacle West Capital news, EVP David P. Falck sold 4,500 shares of the firm’s stock in a transaction on Thursday, December 14th. The shares were sold at an average price of $89.07, for a total value of $400,815.00. Following the completion of the transaction, the executive vice president now directly owns 40,838 shares of the company’s stock, valued at approximately $3,637,440.66. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CEO Donald E. Brandt sold 18,153 shares of the firm’s stock in a transaction on Thursday, November 9th. The shares were sold at an average price of $89.54, for a total transaction of $1,625,419.62. Following the completion of the transaction, the chief executive officer now directly owns 118,574 shares of the company’s stock, valued at $10,617,115.96. The disclosure for this sale can be found here. Over the last three months, insiders sold 24,665 shares of company stock valued at $2,206,047. Insiders own 0.70% of the company’s stock.

A number of large investors have recently made changes to their positions in PNW. Schwab Charles Investment Management Inc. lifted its holdings in shares of Pinnacle West Capital by 4.1% during the 2nd quarter. Schwab Charles Investment Management Inc. now owns 507,078 shares of the utilities provider’s stock worth $43,183,000 after acquiring an additional 20,097 shares during the last quarter. Pacer Advisors Inc. lifted its holdings in shares of Pinnacle West Capital by 8.3% during the 2nd quarter. Pacer Advisors Inc. now owns 2,270 shares of the utilities provider’s stock worth $193,000 after acquiring an additional 174 shares during the last quarter. Keybank National Association OH lifted its holdings in shares of Pinnacle West Capital by 84.3% during the 2nd quarter. Keybank National Association OH now owns 5,197 shares of the utilities provider’s stock worth $443,000 after acquiring an additional 2,377 shares during the last quarter. Principal Financial Group Inc. lifted its holdings in shares of Pinnacle West Capital by 5.6% during the 2nd quarter. Principal Financial Group Inc. now owns 206,647 shares of the utilities provider’s stock worth $17,598,000 after acquiring an additional 10,888 shares during the last quarter. Finally, Commonwealth of Pennsylvania Public School Empls Retrmt SYS lifted its holdings in shares of Pinnacle West Capital by 0.4% during the 2nd quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 8,288 shares of the utilities provider’s stock worth $706,000 after acquiring an additional 29 shares during the last quarter. 82.72% of the stock is owned by hedge funds and other institutional investors.

TRADEMARK VIOLATION NOTICE: “Pinnacle West Capital (PNW) Downgraded to “Sell” at Zacks Investment Research” was originally published by Sports Perspectives and is the sole property of of Sports Perspectives. If you are reading this piece on another site, it was illegally stolen and reposted in violation of international copyright and trademark law. The legal version of this piece can be viewed at https://sportsperspectives.com/2018/01/12/pinnacle-west-capital-pnw-downgraded-to-sell-at-zacks-investment-research.html.

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.

Get a free copy of the Zacks research report on Pinnacle West Capital (PNW)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Pinnacle West Capital (NYSE:PNW)

Receive News & Ratings for Pinnacle West Capital Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Pinnacle West Capital and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply