Avangrid Inc. (NYSE: AGR) Seen Running Too Hot, Let’s Look At This More Closely

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Wellington Management Co. LLP recently announced the acquisition of new stake in Avangrid Inc. (NYSE:AGR). The institutional investor has increased its shareholding in the Utilities company by 15.72% to 9.3 million shares with purchase of 1.26 million shares. This fresh investment now brings its stake to 3.01% valued currently at $413.45 million. In addition, The Vanguard Group, Inc. raised its holdings by 37733.0 to 6.12 million shares. And Pzena Investment Management LLC has lifted its position by 7.97% or 0.21 million shares – to 2.78 million shares.

With over 1.04 million Avangrid Inc. (AGR) shares trading Tuesday and a closing price of $42.69 on the day, the dollar volume was approximately $44.29 million. The shares have shown a positive weekly performance of 0.97% and its price on 07/07/20 gained nearly 0.57%. Currently, there are 309.49M common shares owned by the public and among those 56.16M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 11 analysts who have offered their price forecasts for AGR have a consensus price objective of $45.38. The analysts have set the share’s price value over the next 12 months at a high of $48.00 and a low of $41.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Avangrid Inc. stock is 3.30 for the next 12 months. The average price target is 5.74% above its last price level and an upside to the estimated low will see the stock lose -4.12% over that period. But an upside of 11.06% will see the stock hit the forecast high price target while mean target price for the stock is $46.00.

Insiders at the company have transacted a total of 38 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 25 of these insider trades were purchases, accounting for 30,965 shares. Insider sales of the common stock occurred on 13 occasions, with total insider shares sold totaling 110,031 shares.

The top 3 mutual fund holders in Avangrid Inc. are Vanguard Total Stock Market Index, Vanguard Mid Cap Index Fund, and Vanguard Selected Value Fund. Vanguard Total Stock Market Index owns 1.74 million shares of the company’s stock, all valued at over $77.53 million. The company sold 27630.0 shares recently to bring their total holdings to about 0.56% of the shares outstanding. Vanguard Mid Cap Index Fund bought 9457.0 shares to see its total holdings expand to 1.61 million shares valued at over $71.6 million and representing 0.52% of the shares outstanding. Vanguard Selected Value Fund bought 0.21 million shares to bring its total holdings to over 1.49 million shares at a value of $66.18 million. Vanguard Selected Value Fund now owns shares totaling to 0.48% of the shares outstanding.

Shares of Avangrid Inc. (NYSE: AGR) opened at $41.99, down -$0.46 from a prior closing price of $42.45. However, the script later closed the day at $42.69, up 0.57%. The company’s stock has a 5-day price change of 0.97% and 3.12% over the past three months. AGR shares are trading -16.56% year to date (YTD), with the 12-month market performance down to -16.41% lower. It has a 12-month low price of $35.62 and touched a high of $57.24 over the same period. Currently, 1.04 million shares have been traded, compared to an average intraday trading volume of 668.22K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 0.29%, 0.11%, and -10.62% respectively.

Institutional ownership of Avangrid Inc. (NYSE: AGR) shares accounts for 16.00% of the company’s 309.49M shares outstanding. Mutual fund holders own 7.71%, while other institutional holders and individual stakeholders account for 82.02% and 7.69% respectively.

It has a market capitalization of $13.21B and a beta (3y monthly) value of 0.28. The stock’s trailing 12-month PE ratio is 18.27, while the earnings-per-share (ttm) stands at $2.34. The company has a PEG of 3.51 and a Quick Ratio of 0.50 with the debt-to-equity ratio at 0.53. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.23% over the week and 3.35% over the month.

Analysts forecast that Avangrid Inc. (AGR) will achieve an EPS of $0.34 for the current quarter, $0.44 for the next quarter and $2.41 for 2021. The lowest estimate earnings-per-share for the quarter is $0.29 while analysts give the company a high EPS estimate of $0.39. Comparatively, EPS for the current quarter was $0.33 a year ago. Earnings per share for the fiscal year are expected to increase by 9.30%, and 9.77% over the next financial year. EPS should shrink at an annualized rate of 5.20% over the next five years, compared to 10.50% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 11 brokerage firm advisors rate Avangrid Inc. (AGR) as a “Hold” at a consensus score of 3.30. Specifically, 1 Wall Street analysts polled rate the stock as a buy, while 6 of the 11 advise that investors “hold,” and 3 rated it as a “Sell.”

Looking at the support for the AGR, a number of firms have released research notes about the stock. Morgan Stanley stated their Equal-Weight rating for the stock in a research note on July 02, 2020. Wells Fargo coverage for the Avangrid Inc. (AGR) stock in a research note released on July 01, 2020 offered a Overweight rating with a price target of $48. Seaport Global Securities was of a view on May 20, 2020 that the stock is Neutral, while BofA/Merrill gave the stock Neutral rating on April 30, 2020, issuing a price target of $43- $47. Janney on their part issued Neutral rating on March 13, 2020.

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