Morgan Stanley maintains equal-weight recommendation on Ameren, amid shifts in institutional sentiment
On Thursday, Morgan Stanley maintained an Equal-Weight recommendation on Ameren Corporation (NYSE:AEE) with an average one-year target price of $90.62, indicating a potential upside of 12.66% from its most recent closing price of $80.44. The price predictions for the St. Louis-based energy provider range from a low of $80.80 to a high of $101.85.
Ameren's expected annual revenue for the year is projected to be 7,275MM, a decrease of 7.78%. The company's non-GAAP EPS for the year is forecasted at 4.40.
On September 21, with the current share price at $80.44/share, Ameren's dividend yield was calculated to be 3.13%, significantly higher than the historical average yield of 2.68% by 2.37 standard deviations over the past five years. The dividend payout ratio stands at 0.59, indicating that approximately 59% of its income is distributed as dividends to shareholders.
The company had previously announced a regular quarterly dividend of $0.63 per share ($2.52 annualized) on August 11, maintaining the same payout as its previous dividend, and showing a positive three-year growth rate of 0.27%. Shareholders registered as of September 13 will receive this payment on September 29.
Institutional sentiment towards Ameren has seen some shifts recently. The number of funds or institutions holding positions in Ameren decreased by 40 owners or 2.92% in the last quarter, totaling 1332. The average portfolio weight dedicated to AEE decreased by 22.05% to 0.27%. Institutional ownership of shares decreased by 1.05% to 246,476K shares in the last three months. The put/call ratio for AEE stands at 1.73, suggesting a bearish perspective.
Several prominent shareholders have also adjusted their positions recently. Price T Rowe Associates decreased its holdings by 12.00% to 14,551K shares, representing 5.54% of the company. T. Rowe Price Investment Management reduced its stake by 0.81% to 14,203K shares, or 5.41% of the company. Meanwhile, PRWCX - T. Rowe Price Capital Appreciation Fund holds steady with no change in its 3.48% stake of 9,135K shares.
The Vanguard Total Stock Market Index Fund Investor Shares (VTSMX) increased its stake by 3.07% to hold 8,246K shares or a 3.14% stake in the company. Ameriprise Financial (NYSE:AMP) decreased its holdings by 2.63% to own 6,295K shares or a 2.40% stake in the company.
Ameren Corporation is a major energy provider serving around 2.4 million electric customers and over 900,000 natural gas customers across a vast area of 64,000 square miles via its Ameren Missouri and Ameren Illinois rate-regulated utility subsidiaries.
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