Technicals Say The AES Corporation (AES) Is Worth Holding

As of Thursday close, The AES Corporation’s (NYSE:AES) stock was down -$0.36, moving down -1.96 percent to $18.05. The average number of shares traded per day over the past five days has been 6,961,980 shares. 1 time new highs have been achieved over the past 5 days, with a -$1.56 fall in that time frame. In the last twenty days, the average volume was 5,689,425, while in the previous 50 days, it was 5,917,436.

Since last month, AES stock retreated -18.33%. Shares of the company fell to $17.92 on 08/15/23, the lowest level in the past month. A 52-week high of $29.89 was reached on 01/03/23 after having rallying from a 52-week low of $17.92. Since the beginning of this year, AES’s stock price has dropped by -37.24% or -$10.71, and marked a new high 1 time. However, the stock has declined by -39.61% since its 52-week high.

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AES stock investors should be aware that The AES Corporation (AES) stock had its last reported insider trading activity 2 days ago on Aug 16. MONIE ALAIN, the Director of the company, purchased of 27,400 shares for $18.27 on Aug 16. It resulted in a $500,598 investment by the insider. Laulis Julia M. added 1,500 shares at an average price of $19.51 on Aug 10. The insider now owns 1,500 shares following the transaction. On Aug 08, Director Shaughnessy Maura bought 24,000 shares at $19.45 apiece. The transaction was valued at $466,800.

Valuation Metrics

The stock’s beta is 0.98. Besides these, the trailing price-to-sales (P/S) ratio of 0.94, the price-to-book (PB) ratio of 7.31.

The latest dividend of $0.1659 per share was paid out, remained unchanged from last year’s $0.1659. On Friday December 2 2022, a $0.0079 dividend increase was announced.

Financial Health

In the three months ended June 29, The AES Corporation’s quick ratio stood at 0.80, while its current ratio was 0.90, showing that the company is not able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending June 29 was 14.27, and the total debt-to-equity ratio was 16.05. On the profitability front, the trailing twelve-month gross margin is 19.70% percent. In the year ended June 29, EBITDA margin amounted to 26.90%, whereas operating margins totaled 8.00%. Based on annual data, AES earned $6.0 million in gross profit and brought in $12.62 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 2.20%. Return on equity (ROE) for the past 12 months was -20.10%.

In The AES Corporation’s quarter-end financial report for June 29, it reported total debt of $18.62 billion against cash and short-term investments of $713.0 million. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. AES’s revenue fell -1.68% to $3.24 billion during the quarter, while net income inched up to $3.03 billion. While analysts expected The AES Corporation to report $0.24 quarterly earnings, the actual figure was $0.21 per share, beating the consensus estimate by -12.50%. During the quarter, the company generated $281.0 million in EBITDA. The liabilities of The AES Corporation were 36.75 billion at the end of its most recent quarter ended June 29, and its total debt was $26.54 billion. The value of shareholders’ equity is $669.63 million.

Technical Picture

This quick technical analysis looks at The AES Corporation’s (AES) price momentum. With a historical volatility rate of 31.49%, the RSI 9-day stood at 21.83% on 17 August.

With respect to its five-day moving average, the current The AES Corporation price is down by -7.96% percent or -$1.56. At present, AES shares trade -17.32% below its 20-day simple moving average and -18.73% percent below its 100-day simple moving average. However, the stock is currently trading approximately -10.33% below its SMA50 and -31.78% below its SMA200.

Stochastic coefficient K was 5.73% and Stochastic coefficient D was 6.06%, while ATR was 0.62. Given the Stochastic reading of 3.14% for the 14-day period, the RSI (14) reading has been calculated as 26.88%. As of today, the MACD Oscillator reading stands at -0.90, while the 14-day reading stands at -1.52.

Analyst Ratings

The AES Corporation downgraded its rating on The AES Corporation (NYSE: AES) to a Neutral in a note to investors on June 22, 2023. The analysts firm previously had a Buy rating on the stock.The AES Corporation (AES) has been rated Overweight by analysts. According to 0 brokerage firms, AES is a sell, and 3 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 1 analyst rate The AES Corporation stock as buy, with 8 recommending it as overweight.

With a median target price of $29.00, the current consensus forecast for the stock is $23.00 – $30.00. Based on these forecasts, analysts predict The AES Corporation (AES) will achieve an average price target of $27.63.

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