The AES Corporation’s Stock Price Drops to $11.24, Experiencing a 4.01% Decline

The AES Corporation (AES)

11.24 USD -0.47 (-4.01%) Volume: 25.9M

The AES Corporation’s stock price is currently trading at 11.24 USD, experiencing a drop of -4.01% this trading session with a trading volume of 25.9M, reflecting a year-to-date decrease of -12.67%. Highlighting AES’s volatile market performance.

Latest developments on The AES Corporation

Today, AES Corp’s stock price experienced a significant downturn after Jefferies downgraded the company to Underperform due to valuation concerns. This move by Jefferies led to a decrease in AES Corp’s stock rating and a lowered price target of $9. Additionally, OMERS Administration Corp increased its holdings in AES Corp, while Point72 Hong Kong Ltd made a new investment in the company. Maven Securities LTD also bought a new stake in AES Corp, while Mork Capital Management LLC purchased shares of the company. As a result, AES Corp’s shares were down 4.18% on May 19, underperforming compared to its competitors.

The AES Corporation on Smartkarma

Analysts at Baptista Research have provided bullish coverage on Aes Corp, highlighting the company’s renewable energy growth and investment progress. In their report titled “AES Corporation: Renewable Energy Growth & Investment Progress Driving Our Optimism!”, Baptista Research discussed the company’s recent earnings, noting achievements and challenges faced in 2024. Despite falling on the lower end of their guidance due to extreme weather events impacting operations in Colombia and Brazil, AES recorded a parent free cash flow of $1.1 billion and a record adjusted EPS of $2.14, exceeding expectations.

Furthermore, Baptista Research reiterated their positive stance on Aes Corp in another report titled “The AES Corporation: Its Renewable Energy Expansion and Project Pipeline Driving Our ‘Buy’ Rating! – Major Drivers”. The analysts acknowledged the company’s positive advancements in renewable energy expansion and U.S. utility growth, despite facing challenges from severe weather conditions in South America. Baptista Research aims to evaluate various factors influencing the company’s price and conduct an independent valuation using a Discounted Cash Flow (DCF) methodology.

A look at The AES Corporation Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on the Smartkarma Smart Scores, Aes Corp has a strong outlook for its dividend and growth potential, scoring a 5 in both categories. This indicates that the company is likely to provide stable dividend returns and has promising prospects for expansion and profitability in the long term. However, Aes Corp scored lower in terms of value and resilience, with scores of 2 in both categories. This suggests that the company may not be currently undervalued and could face challenges in maintaining its performance during times of economic uncertainty.

The momentum score of 4 for Aes Corp indicates that the company has positive market momentum and is likely to continue its upward trend in the near future. Overall, Aes Corp is a company that acquires, develops, and operates generation plants and distribution businesses in multiple countries. It sells electricity under long term contracts, serves customers through regulated utility businesses, mines coal, produces drinking water from seawater, and explores alternative energy sources.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
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