AES Corp (NYSE:AES) Chief Accounting Officer Sherry Kohan sold 15,000 shares of company stock on June 6, 2024, at a weighted average price of $20.35 per share, totaling over $305,250. The transactions occurred in multiple parts, with prices ranging from $20.31 to $20.42.
The sale was disclosed in a filing with the Securities and Exchange Commission. Following the sale, Kohan still owns 43,334 shares of AES Corp directly. Additionally, it was noted that since the last report filed in February 2024, Kohan acquired 267 additional shares of AES Common Stock through The AES Corporation (NYSE:AES) Retirement Savings Plan, bringing the indirect holdings to 32,969 shares.
Investors often monitor insider transactions as they provide insights into how executives view the company's stock value and future prospects. However, these transactions can be influenced by various factors and do not necessarily indicate a change in company performance or strategy.
The details of the sale, including the range of prices at which the shares were sold, will be made available upon request by the Securities and Exchange Commission staff, the issuer, or a security holder of the issuer, as stated in the filing's footnotes.
AES Corp's stock activity is closely watched by investors seeking to understand the movements and decisions of company insiders. The sale by a high-ranking executive like the Chief Accounting Officer may be of particular interest to the market.
In other recent news, AES Corporation has been the focus of several analyst adjustments. Argus maintained a Buy rating for AES shares but reduced the price target to $28, citing the company's strong presence in new energy technologies and its role as a leading seller of renewable energy. The firm also underscored AES's significant solar contract with Amazon (NASDAQ:AMZN) and its growth strategy that targets an annual growth rate of 7%-9% in adjusted EPS through 2027.
On the other hand, Seaport Global Securities downgraded AES from "Buy" to "Neutral" due to valuation concerns and the company's less than expected returns from its solar/storage investments. The firm also noted that AES's utilities, when valued at a peer-average price-to-earnings ratio, place AES ex utilities at approximately 14.3 times 2026 EV/EBITDA.
Meanwhile, Mizuho maintained a Buy rating and raised the price target for AES to $24, following the company's announcement of a significant asset sale in Brazil. The firm highlighted the favorable valuation of this transaction and AES's focus on growth opportunities in the U.S. renewable energy sector.
In the company's recent earnings call, AES reaffirmed its 2024 outlook and announced a 15-year contract with Amazon for the second phase of the Bellefield project. The company reported adjusted EBITDA with tax attributes of $863 million, adjusted EBITDA of $635 million, and adjusted EPS of $0.50. With a 66 gigawatt pipeline of renewable projects, AES plans to add 3.6 gigawatts of new capacity this year and invest $2.6 billion in new growth.
InvestingPro Insights
As investors digest the news of AES Corp's (NYSE:AES) Chief Accounting Officer Sherry Kohan selling a portion of her stake in the company, a closer look at AES's financial metrics and analyst sentiment may offer additional context. With a market capitalization of $14.13 billion and a P/E ratio of 25.71, AES appears to be trading at a premium based on its earnings. However, the company's PEG ratio, which stands at a low 0.14, suggests that its price may be reasonable relative to its expected earnings growth.
One of the InvestingPro Tips notes that AES has been raising its dividend for 12 consecutive years, which may interest income-focused investors. The dividend yield is currently at 3.39%, with a modest growth of 3.98% in the last twelve months as of Q1 2023. Additionally, the company has a track record of profitability over the last twelve months, and analysts predict it will remain profitable this year. This could signal a reassuring sign for investors concerned about the recent insider sale.
On the performance front, AES has delivered a strong return over the last three months, with a price total return of 27.22%. This robust short-term performance, coupled with the fact that 2 analysts have revised their earnings upwards for the upcoming period, might suggest a positive outlook for the company's near-term future.
For those seeking more comprehensive analysis, InvestingPro offers a range of additional tips. There are currently 11 more InvestingPro Tips available for AES, providing deeper insights into the company's financial health and future prospects. To access these tips and further enhance your investment strategy, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/AES.
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