Investors Cautiously Shuffling Back into The AES Corporation (NYSE:AES) Shares

In the recent trading session, The AES Corporation (NYSE:AES) shares gained 0.55% or 0.11 points to close at $20.29 with a thin trading volume of 1.033 million shares. It opened the trading session at $20.14, the shares rose to $20.33 and dropped to $20.17, the range by which the price of stock traded the whole session. The company now has a market cap of $13.5 billion and currently has 666.53 million outstanding shares. The AES Corporation (AES) stock has accumulated 5.49 percent of market value in 21 trading days.

AES stock’s trailing 3-year beta is 1.04, 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 1.41 percent year to date (YTD) compared to a rise of 31.55 percent in 52 week’s period. The firm’s shares are still trading -0.64 percent below its 1-year high of $20.42 and 38.97 percent up from 52-week low of $14.60. 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) is most likely going to rise -3.89 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $21 as 12-month high price target. This represents a whopping 3.5 percent increase from the current trading price of shares. The 52-week median price target given by the analysts is $19, which means a return possibility of -6.36 percent in comparison with the closing price of the stock of $20.29 in recent trading session. The lowest price set for the stock is $18 which is just above -11.29 percent from AES share’s price at the end of session.

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 12 percent to $2.94B in the financial fourth quarter, while EPS will soar by about -2.78 percent to $0.35 per share. In the last quarter, it’s earnings of $0.26 per share came worse than the $0.35851, 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, 8.84 percent in the coming year and the trend continues by 10.2 percent every year in the next 5 years.

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 33.2 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 33.11 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 26.09 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 47.64 percent since the transaction. UBBEN JEFFREY W currently holds a stake of 1.56 million in AES stock which is worth $31.74 million after the insider buying.

The stock is lingering around the initial support level of $20.1. After this, the following support is at the zone of $20.03. 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 69.31 on the daily chart, and this may be a cause for concern. In case the price goes below $20.03 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $20.29 level may cause a pull-back move approaching $20.41 mark.

The AES Corporation (AES) shares are trading at a P/E ratio of 25.9 times earnings posted in the trailing 12 months. The industry AES deals with has an average P/E of 26.79. Its P/B ratio is standing at 4.03X compared to the 2.39 industry average. It is additionally sporting a 1.05 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.76. 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%.