Zacks Investment Research Downgrades Atlantica Yield (NASDAQ:AY) to Hold

Zacks Investment Research lowered shares of Atlantica Yield (NASDAQ:AY) from a buy rating to a hold rating in a research note published on Wednesday, Zacks.com reports.

According to Zacks, “Atlantica Yield Plc owns, manages and acquires a diversified portfolio of contracted assets in the power and environment sectors. It operates primarily in North America, South America and Europe. Atlantica Yield Plc, formerly known as Abengoa Yield plc, is based in Brentford, the United Kingdom. “

A number of other equities research analysts have also recently commented on AY. Citigroup increased their target price on shares of Atlantica Yield from $22.00 to $27.00 and gave the company a buy rating in a research report on Monday, July 29th. Raymond James reiterated an outperform rating and issued a $27.00 target price on shares of Atlantica Yield in a research report on Thursday, August 8th. BidaskClub upgraded shares of Atlantica Yield from a buy rating to a strong-buy rating in a research report on Thursday, October 3rd. Finally, ValuEngine cut shares of Atlantica Yield from a buy rating to a hold rating in a research report on Wednesday, October 2nd. Two equities research analysts have rated the stock with a hold rating, two have issued a buy rating and one has assigned a strong buy rating to the company. The company currently has a consensus rating of Buy and an average target price of $27.00.

NASDAQ:AY opened at $24.21 on Wednesday. The company has a debt-to-equity ratio of 2.80, a quick ratio of 1.14 and a current ratio of 1.16. The company has a fifty day moving average of $24.07 and a two-hundred day moving average of $22.37. The stock has a market capitalization of $2.43 billion, a PE ratio of 57.64 and a beta of 0.44. Atlantica Yield has a fifty-two week low of $17.50 and a fifty-two week high of $24.75.

Atlantica Yield (NASDAQ:AY) last posted its quarterly earnings data on Wednesday, August 7th. The utilities provider reported $0.27 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.49 by ($0.22). The company had revenue of $283.34 million for the quarter. Atlantica Yield had a negative return on equity of 0.40% and a negative net margin of 0.68%. Research analysts forecast that Atlantica Yield will post 0.78 earnings per share for the current year.

The firm also recently announced a quarterly dividend, which was paid on Friday, September 13th. Stockholders of record on Friday, August 30th were given a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a dividend yield of 6.61%. This is a boost from Atlantica Yield’s previous quarterly dividend of $0.39. The ex-dividend date of this dividend was Thursday, August 29th. Atlantica Yield’s dividend payout ratio is 380.95%.

Several hedge funds and other institutional investors have recently modified their holdings of AY. FMR LLC acquired a new stake in shares of Atlantica Yield in the first quarter valued at about $26,976,000. Acadian Asset Management LLC raised its position in shares of Atlantica Yield by 36.1% in the second quarter. Acadian Asset Management LLC now owns 2,656,922 shares of the utilities provider’s stock valued at $60,234,000 after buying an additional 704,789 shares during the last quarter. Kayne Anderson Capital Advisors LP raised its position in shares of Atlantica Yield by 1,294.6% in the second quarter. Kayne Anderson Capital Advisors LP now owns 664,443 shares of the utilities provider’s stock valued at $15,059,000 after buying an additional 616,800 shares during the last quarter. Victory Capital Management Inc. acquired a new stake in shares of Atlantica Yield in the second quarter valued at about $9,305,000. Finally, Covalis Capital LLP grew its holdings in shares of Atlantica Yield by 94.3% in the second quarter. Covalis Capital LLP now owns 630,771 shares of the utilities provider’s stock valued at $14,299,000 after purchasing an additional 306,116 shares during the period. Institutional investors and hedge funds own 42.96% of the company’s stock.

About Atlantica Yield

Atlantica Yield plc acquires, owns, and manages renewable energy, natural gas power, electric transmission lines, and water assets in the United States, Mexico, Peru, Chile, Uruguay, Spain, Algeria, and South Africa. As of December 31, 2018, it had 24 assets, including 1,496 megawatts (MW) of renewable energy generation assets comprising solar power and wind plants; 300 MW of natural gas power generation assets that produce electricity and steam from natural gas; 1,152 miles of electric transmission lines; and water desalination plants with an aggregate capacity of 10.5 million cubic feet per day.

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