The AES Corporation (AES) Trading Ideas: Be Fearful When Others Are Greedy

Taking into account all relevant factors, The AES Corporation (NYSE:AES) scores 88% Buy on the technical side. The share price is also flashing a Buy from the Barchart TrendSpotter trading system. Investors starting out on a short-term path of investing should know that short terms indicators for AES averaged 100% Buy with an average daily trading volume over the past 20 days at 6551495 shares. Those using medium-term investment strategies, the shares have overall a 1% Buy signal while the 50-day average daily volume remained almost 5311278 shares. It’s also important to note that the stock, whose average daily volume over the 100 days as of this piece was shares, is signaling50% Buy for long term investors.

The stock is lingering around the initial support level of $18.77. After this, the following support is at the zone of $18.7. Up until the time the AES stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 73.5 on the daily chart, and this may be a cause for concern. In case the price goes below $18.7 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $18.94 level may cause a pull-back move approaching $19.04 mark.

The AES Corporation (AES) is most likely going to rise -0.27 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $20-month high price target. This represents a whopping 6.16 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $18.5, which means a return possibility of -1.8 percent in comparison with the closing price of the stock of $18.84 on December 03. The lowest price set for the stock is $18 — just above -4.46 percent from AES share price now.

Let’s take a glimpse at some insider activity at The AES Corporation (NYSE:AES) and observe the pattern. The earliest insider trade happened on 08/30/2019. Nebreda Julian parted with a total of 18.86 thousand shares of the firm at average share price of $15.24. The total amount for the sale was set at $287.49 thousand. On completing this exchange, the SVP, Andes SBU President account balance was 60.6 thousand shares. The stock grew 24.15 percent from that insider sale. On 08/12/2019, UBBEN JEFFREY W, , did a purchase of 200 thousand shares at a price of $15.25 per share. This increased 3.05 million shares to the insider’s fortune and the stock experienced a 24.07 percent rally in price since the news became public. This exchange saw 4.35 million shares get into the account. On 05/13/2019, UBBEN JEFFREY W recorded a purchase transaction valued at $41.57 million. The purchase at $16.1 a share has added 2.58 million shares into the insider’s portfolio position. Meanwhile, shares price witnessed 17.52 percent increase since the transaction reporting date. The company insider is left with 4.15 million shares remaining in the account. UBBEN JEFFREY W, who works as at the company, performed a purchase of 35 thousand shares in a transaction worth $481.25 thousand. The acquisition recorded on 12/26/2018 was priced at $13.75 per share. The stock price soared 37.6 percent since the transaction. UBBEN JEFFREY W currently holds a stake of 1.56 million in AES stock which is worth $29.48 million after the insider buying.

On December 03, 2019, The AES Corporation (NYSE:AES) shares lost -0.42% or -0.08 points to close at $18.84 with a heavy trading volume of 5.817 million shares. It opened the trading session at $18.88, the shares rose to $18.97 and dropped to $18.8, the range by which the price of stock traded the whole day. The company now has a market cap of $12.5 billion and currently has 663.19 million outstanding shares. The AES Corporation (AES) stock has accumulated 7.6 percent of market value in 21 trading days.

Stock analysts at BofA/Merrill upped their rating on shares of The AES Corporation (NYSE:AES) from Underperform to a new rating of Neutral in their opinion released on June 20. Argus analysts bumped their recommendation on AES stock from prior rating of Hold to Buy in a separate flash note to investors on May 22. Analysts at BofA/Merrill downgraded the company stock to a Underperform call from its previous Neutral stance, in a flash note that dated back to July 02.

AES stock’s trailing 3-year beta is 1.08, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was $0.78 share in the trailing 52 weeks. The stock’s value surged 30.29 percent year to date (YTD) compared to a rise of 21.63 percent in 52 week’s period. The firm’s shares are still trading -1 percent below its 1-year high of $19.03 and 39.04 percent up from 52-week low of $13.55. The average consensus ranking on the company is 2.4, 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.

The AES Corporation (AES) shares are trading at a P/E ratio of 26.2 times earnings posted in the trailing 12 months. The industry AES deals with has an average P/E of 23.9. Its P/B ratio is standing at 4X compared to the 2.1 industry average. It is additionally sporting a 1.2 on the Price-to-Sales ratio, compared to the industry’s P/S average of 2.2. The AES Corporation has a 23.5% gross profit margin, with its operating margin around 21.3%. Alongside this, the company’s net profit margin currently stands at 4.9%.

Past records have indicated that shares in The AES Corporation declined on 21 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 AES’s Q4 earnings on February 26. Analysts are predicting revenue to climb 11.6 percent to $2.93B in the financial fourth quarter, while EPS will soar by about -2.78 percent to $0.35 per share. In the last quarter, it earnings of $0.26 per share came worse than the $0.36851, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $2.62B, missing the $4.06B analysts had expected. Earnings are seen to rise by 316.9 percent this year, 7.57 percent in the coming year and the trend continues by 9 percent every year in the next 5 years.