Is The AES Corporation (AES) A Good Investment?

The AES Corporation (NYSE:AES) finished Thursday with a subtraction of -$0.6 to close at $17.72, a downside of -3.28 percent. An average of 5,529,440 shares of common stock have been traded in the last five days. There was a fall of -$0.33 in the past week, and it reached a new high 10 times over the past 12 months. The last 20 days have seen an average of 5,741,285 shares traded, while the 50-day average volume stands at 5,465,382.

AES stock has decreased by -19.09% in the last month. The company shares reached their 1-month lowest point of $17.65 on 08/24/23. With the stock rallying to its 52-week high on 01/03/23, shares of the company touched a low of $17.75 and a high of $29.89 in 52 weeks. It has reached a new high 1 time so far this year and lost -38.39% or -$11.04 in price. In spite of this, the price is down -40.72% from the 52-week high.

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Insider Transactions

AES stock investors should be aware that The AES Corporation (AES) stock had its last reported insider trading activity 240 days ago on Aug 16.

Valuation Metrics

The AES Corporation (AES) stock’s beta is 0.97. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.92, the price-to-book (PB) ratio at 7.17.

Financial Health

The quick ratio of The AES Corporation for the three months ended June 29 was 0.80, and the current ratio was 0.90, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 14.27 and a total debt to equity ratio of 16.05 for the quarter ending June 29. The AES Corporation’s EBITDA margin for the year ending June 29 is 26.90%, while its operating margin for the same period stands at 8.00%. Its gross profit as reported stood at $6.0 million compared to revenue of $12.62 billion.

Earnings Surprise

For the three-month period that ended June 29, The AES Corporation had $18.62 billion in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of -$39.0 million in the quarter, while revenues were shrunk -358.97%. The analyst consensus anticipated The AES Corporation’s latest quarter earnings to come in at $0.22 per share, but it turned out to be $0.21, a -4.50% surprise. For the quarter, EBITDA amounted to $281.0 million. Shareholders own equity worth $669.63 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at The AES Corporation (AES) price momentum. RSI 9-day as of the close on 24 August was 26.36%, suggesting the stock is oversold, with historical volatility in this time frame at 36.55%.

As of today, AES’s price is $17.98 -1.83% or -$0.33 from its 5-day moving average. AES is currently trading -17.12% lower than its 20-day SMA and -26.41% lower than its 100-day SMA. However, the stock’s current price level is -14.93% below the SMA50 and -33.03% below the SMA200.

The stochastic %K and %D were 9.55% and 8.06%, respectively, and the average true range (ATR) was 0.53. With the 14-day stochastic at 2.73% and the average true range at 0.54, the RSI (14) stands at 28.81%. The stock has reached -0.16 on the 9-day MACD Oscillator while the 14-day reading was at -0.67.

Analyst Ratings

Barclays launched coverage on The AES Corporation (NYSE: AES) in its analyst report released on August 23, 2023. The firm assigned the stock an Overweight rating. The consensus rating for The AES Corporation (AES) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell AES, while 3 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 2 analysts, while 8 others rate it as a “buy”.

What is AES’s price target for the next 12 months?

Analysts predict a range of price targets between $23.00 and $30.00, with a median target of $29.00. Taking a look at these predictions, the average price target given by analysts for The AES Corporation (AES) stock is $27.22.

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