Hennessy Advisors Inc. Reduces Position in Avangrid, Inc. during the Second Quarter of 2023
On September 26, 2023, it was reported that Hennessy Advisors Inc., an investment management company, had decreased its holdings in Avangrid, Inc. (NYSE:AGR) by 5.9% during the second quarter of the year. This information was disclosed in their recent filing with the Securities and Exchange Commission (SEC). At the end of the reporting period, Hennessy Advisors Inc.’s position in Avangrid amounted to 90,400 shares valued at $3,406,000.
Avangrid’s Quarterly Earnings Report:
According to Avangrid’s last quarterly earnings data released on July 27th, challenges were encountered as they fell short of consensus estimates. The utilities provider reported earnings per share (EPS) of $0.21 for the quarter, missing the market expectation of $0.50 by ($0.29). Additionally, their revenue for the quarter stood at $1.59 billion compared to a consensus estimate of $1.83 billion.
Notably, Avangrid’s net margin was reported at 7.23%, and return on equity reached 2.94%. It is important to highlight that their quarterly revenue showed a decline of 11.5% compared to the previous year’s figures. In the same period of the prior year, Avangrid earned $0.46 EPS.
Looking ahead, analysts anticipate that Avangrid will post earnings per share of approximately $2.09 for the current year based on average estimates within the market.
Implications for Investors:
Hennessy Advisors Inc.’s decision to reduce its stake in Avangrid suggests a potential lack of confidence or concerns regarding future prospects for this utilities provider company within their investment portfolio. This action signifies the importance of monitoring market conditions and investment strategies.
Investors may want to monitor Avangrid closely to assess how the company addresses declining revenue figures and implements strategies to improve their financial performance. Understanding the factors contributing to this decline will help investors make informed decisions regarding their investment portfolios.
In conclusion, Hennessy Advisors Inc.’s recent filing indicates a decrease in their position in Avangrid during the second quarter of 2023. Avangrid’s latest quarterly earnings report revealed challenges including lower-than-expected EPS and revenue figures. Investors must continue monitoring Avangrid’s performance and observe how the company responds to these challenges moving forward.
Updated on: 03/12/2023
Debt to equity ratio: Buy
Price to earnings ratio: Strong Buy
Price to book ratio: Buy
DCF: Strong Buy
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Institutional Investors and Hedge Funds Increase Holdings in Avangrid, a Utilities Provider Company
As of September 26, 2023, a number of hedge funds and institutional investors have made significant changes to their holdings of Avangrid, the utilities provider company. Global Retirement Partners LLC saw a considerable increase in its stake in Avangrid, raising it by an astonishing 480.5% during the first quarter. The company now owns 656 shares of Avangrid’s stock with an estimated value of $26,000, after purchasing an additional 543 shares within that period.
Similarly, Quent Capital LLC also experienced a substantial rise in its stake, increasing it by 167.1% during the first quarter. They now possess 943 shares of Avangrid’s stock valued at around $38,000 after acquiring an additional 590 shares during the same timeframe.
MetLife Investment Management LLC joined in on the action as well, acquiring a new stake in Avangrid worth approximately $53,000 during the first quarter. Not to be left behind, State of Wyoming also acquired a new stake in Avangrid during the fourth quarter which was valued at about $61,000.
Northwestern Mutual Wealth Management Co. rounded up this group by raising its stake by 27.5% during the fourth quarter as well. They recently purchased an additional 600 shares and now own a total of 2,779 shares with an estimated worth of $119,000.
It is important to note that these institutional investors and hedge funds collectively own a significant portion (12.93%) of Avangrid’s overall stock.
Avangrid Inc., listed on NYSE under the ticker symbol AGR, opened at $32.98 on Tuesday reflecting trading activity on September 26th. The company maintains a quick ratio of 0.49 and a current ratio of 0.59 alongside a debt-to-equity ratio of 0.41.
The stock has been experiencing changes over time as indicated by its 50-day moving average price of $35.34 and its two-hundred day moving average price of $37.71. With a market capitalization of $12.76 billion, Avangrid is classified as a utilities provider in the industry. Its current price-to-earnings ratio stands at 21.99, suggesting that investors are paying approximately 21.99 times more for each dollar of company earnings.
The company’s P/E ratio to growth (P/E/G) ratio stands at 3.94, demonstrating that Avangrid is expected to grow at a slower pace compared to its earnings multiple. The beta of the stock is calculated to be 0.43.
Avangrid also made an announcement regarding its quarterly dividend payment to shareholders of record on Friday, September 1st, which will be paid on Monday, October 2nd. Shareholders can expect a dividend payment of $0.44 per share held in Avangrid stock.
This translates into an annualized dividend of $1.76 per share with a yield amounting to 5.34% based on the company’s current stock price.
Recent research reports have shed some light on Avangrid’s performance in the market as well as analyst opinions surrounding the stock. TheStreet downgraded Avangrid from a “b-” rating to a “c” rating in their research note released on August 28th.
Meanwhile, StockNews.com upgraded their rating from “sell” to “hold” on September 19th after reassessing the company’s outlook.
Bank of America also weighed in on Avangrid during June when they elevated their target price from $34.00 to $35.00 in one of their reports.
In contrast, Mizuho reduced their target price from an estimated $39 to $37 per share in their report published on August 30th.
Lastly, KeyCorp upgraded Avangrid to a “sector weight” rating from their previous “underweight” rating in a report issued on June 21st.
While opinions vary among analysts, Bloomberg.com reports that the average rating for Avangrid is currently “Hold.” Additionally, the average price target for the stock stands at $37.75.