PPL Corporation (PPL) Stock Shaking the Bears Away

On December 03, 2019, PPL Corporation (NYSE:PPL) shares lost 0% or 0 points to close at $34.19 with a thin trading volume of 3.326 million shares. It opened the trading session at $34.18, the shares rose to $34.3 and dropped to $34.03, the range by which the price of stock traded the whole day. The company now has a market cap of $24.9 billion and currently has 728.77 million outstanding shares. PPL Corporation (PPL) stock has accumulated 1.79 percent of market value in 21 trading days.

PPL stock’s trailing 3-year beta is 0.52, meaning there will be a lower rate of return, although posing a lower risk. The part of a firm’s profit given to each outstanding share of regular stock was $2.46 share in the trailing 52 weeks. The stock’s value surged 20.68 percent year to date (YTD) compared to a rise of 11.77 percent in 52 week’s period. The firm’s shares are still trading -0.61 percent below its 1-year high of $34.40 and 25.19 percent up from 52-week low of $27.31. The average consensus ranking on the company is 2.5, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.

PPL Corporation (PPL) is most likely going to rise -2.02 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $37-month high price target. This represents a whopping 8.22 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $33, which means a return possibility of -3.48 percent in comparison with the closing price of the stock of $34.19 on December 03. The lowest price set for the stock is $30 — just above -12.26 percent from PPL share price now.

Past records have indicated that shares in PPL Corporation rose on 20 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of PPL’s Q4 earnings on February 06. Analysts are predicting revenue to climb 6 percent to $2.05B in the financial fourth quarter, while EPS will soar by about 3.85 percent to $0.54 per share. In the last quarter, it earnings of $0.7 per share came better than the $0.56115, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $1.94B, topping the $1.88B analysts had expected. Earnings are seen to rise by 22.3 percent this year, 3.62 percent in the coming year and the trend continues by 0.5 percent every year in the next 5 years.

Let’s take a glimpse at some insider activity at PPL Corporation (NYSE:PPL) and observe the pattern. The earliest insider trade happened on 11/18/2019. Sorgi Vincent parted with a total of 13.7 thousand shares of the firm at average share price of $34.04. The total amount for the sale was set at $466.21 thousand. On completing this exchange, the President and COO account balance was 17.42 thousand shares. The stock grew 0.44 percent from that insider sale. On 11/01/2019, SPENCE WILLIAM H, Chairman and CEO, did a sale of 388 thousand shares at a price of $33.5 per share. This got rid of 13 million shares from the insider’s fortune and the stock experienced a 2.06 percent rally in price since the news became public. This exchange saw 182.69 thousand shares get out from the Chairman and CEO account.

On 10/22/2019, Chairman and CEO SPENCE WILLIAM H recorded a sale transaction valued at $7.1 million. The sale at $33 a share has eliminated 215.02 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed 3.61 percent increase since the transaction reporting date. The company insider is left with 182.69 thousand shares remaining in the account. Raphael Joanne H, who works as EVP, GC & Corp Sec at the company, performed a sale of 21.29 thousand shares in a transaction worth $682.71 thousand. The disposal recorded on 10/14/2019 was priced at $32.07 per share. The stock price soared 6.61 percent since the transaction. Raphael Joanne H currently holds a stake of 27.21 thousand in PPL stock which is worth $930.46 thousand after the insider selling.

The stock is lingering around the initial support level of $34.05. After this, the following support is at the zone of $33.9. Up until the time the PPL stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 65.16 on the daily chart, and this may be a cause for concern. In case the price goes below $33.9 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $34.32 level may cause a pull-back move approaching $34.44 mark.

PPL Corporation (PPL) shares are trading at a P/E ratio of 13.9 times earnings posted in the trailing 12 months. The industry PPL deals with has an average P/E of 28.4. Its P/B ratio is standing at 2.1X compared to the 1.7 industry average. It is additionally sporting a 3.2 on the Price-to-Sales ratio, compared to the industry’s P/S average of 2.2. PPL Corporation has a 90.4% gross profit margin, with its operating margin around 36.2%. Alongside this, the company’s net profit margin currently stands at 23.2%.