AES Corp. (AES) Shares: Are They Risky Or Cheap?

AES Corp. (NYSE:AES) finished Thursday with a subtraction of -$1.05 to close at $14.88, a downside of -6.59 percent. An average of 7,575,480 shares of common stock have been traded in the last five days. There was a fall of -$1.55 in the past week, and it reached a new high 15 times over the past 12 months. The last 20 days have seen an average of 7,130,785 shares traded, while the 50-day average volume stands at 6,032,656.

AES stock has decreased by -18.29% in the last month. The company shares reached their 1-month lowest point of $14.85 on 09/28/23. With the stock rallying to its 52-week high on 01/03/23, shares of the company touched a low of $15.63 and a high of $29.89 in 52 weeks. It has reached a new high 1 time so far this year and lost -48.26% or -$13.88 in price. In spite of this, the price is down -50.22% from the 52-week high.

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Insider Transactions

AES stock investors should be aware that AES Corp. (AES) stock had its last reported insider trading activity 275 days ago on Aug 16.

Valuation Metrics

AES Corp. (AES) stock’s beta is 0.99. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.77, the price-to-book (PB) ratio at 6.02.

Financial Health

The quick ratio of AES Corp. for the three months ended June 29 was 0.84, and the current ratio was 0.94, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 6.24 and a total debt to equity ratio of 7.02 for the quarter ending June 29. AES Corp.’s EBITDA margin for the year ending June 29 is 26.90%, while its operating margin for the same period stands at 17.88%. Its gross profit as reported stood at $6.0 million compared to revenue of $12.62 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, AES Corp.’s return on assets was -0.95%.

Earnings Surprise

For the three-month period that ended June 29, AES Corp. 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 AES Corp.’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 AES Corp. (AES) price momentum. RSI 9-day as of the close on 28 September was 18.00%, suggesting the stock is oversold, with historical volatility in this time frame at 34.47%.

As of today, AES’s price is $15.77 -9.43% or -$1.55 from its 5-day moving average. AES is currently trading -18.33% lower than its 20-day SMA and -34.36% lower than its 100-day SMA. However, the stock’s current price level is -32.67% below the SMA50 and -47.83% below the SMA200.

The stochastic %K and %D were 7.58% and 11.61%, respectively, and the average true range (ATR) was 0.51. With the 14-day stochastic at 1.10% and the average true range at 0.49, the RSI (14) stands at 21.82%. The stock has reached -0.66 on the 9-day MACD Oscillator while the 14-day reading was at -1.00.

Analyst Ratings

Barclays launched coverage on AES Corp. (NYSE: AES) in its analyst report released on August 23, 2023. The firm assigned the stock an Overweight rating.

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