The AES Corporation’s Stock Price Plummets to $10.13, Marking a Steep 9.88% Drop

The AES Corporation (AES)

10.13 USD -1.11 (-9.88%) Volume: 44.8M

The AES Corporation’s stock price takes a hit, falling to $10.13 with a significant trading session drop of -9.88% on a high trading volume of 44.8M, reflecting a continued downward trend with a YTD decrease of -21.29%.

Latest developments on The AES Corporation

Today, AES Corp. stock price movements were influenced by the company’s long-term power purchase agreements (PPAs) with Meta Platforms to support data centers. The partnership includes the supply of 650 MW of solar power to Meta’s facilities in Kansas and Texas. Despite this positive development, AES Corp. stock underperformed when compared to competitors, with Jefferies downgrading the stock to Underperform from Hold due to valuation concerns. This news comes after recent acquisitions of AES Corp. shares by Wexford Capital LP, SIR Capital Management L.P., OMERS ADMINISTRATION Corp, and investments made by Point72 Hong Kong Ltd and Maven Securities LTD. The market response to these events led to fluctuations in AES Corp. stock prices today.

The AES Corporation on Smartkarma

Analysts at Baptista Research have published bullish research reports on Aes Corp on Smartkarma, highlighting the company’s renewable energy growth and investment progress. The recent earnings report of Aes Corp for 2024 showcased a mixed performance, with achievements and challenges. Despite facing setbacks from extreme weather events in Colombia and Brazil, the company achieved an adjusted EBITDA of $2.64 billion and recorded a parent free cash flow of $1.1 billion. The analysts remain optimistic about Aes Corp‘s strategic outlook for 2025 and beyond, emphasizing the company’s resilience in the face of challenges.

In their research reports on Smartkarma, Baptista Research also emphasized Aes Corp‘s renewable energy expansion and project pipeline as major drivers for their ‘Buy’ rating. The company’s third-quarter earnings results for 2024 revealed positive advancements in renewable energy expansion and U.S. utility growth, despite facing headwinds from severe weather conditions in South America. Baptista Research conducted an independent valuation of Aes Corp using a Discounted Cash Flow (DCF) methodology to evaluate the factors that could influence the company’s price in the near future. The analysts at Baptista Research remain bullish on Aes Corp, highlighting the company’s potential for growth and investment opportunities.

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

When looking at the long-term outlook for Aes Corp utilizing the Smartkarma Smart Scores, it is evident that the company has a strong focus on both dividend and growth potential. With a score of 5 in both categories, Aes Corp is positioned well to provide consistent returns to its shareholders while also showing promising signs of expansion and development. Additionally, the company’s momentum score of 4 suggests that it is on a positive trajectory, indicating potential future success.

However, Aes Corp does face challenges in terms of its value and resilience scores, which are rated at 2. This suggests that the company may need to address issues related to its financial performance and ability to withstand economic downturns. Despite these concerns, Aes Corp‘s diverse range of operations, including its involvement in alternative energy sources, positions it well for potential growth and innovation in the long term.

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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