Fintel reports that on August 22, 2023, Mizuho upgraded their outlook for Pinnacle West Capital (NYSE:PNW) from Neutral to Buy.

Analyst Price Forecast Suggests 4.78% Upside

As of August 2, 2023, the average one-year price target for Pinnacle West Capital is 81.40. The forecasts range from a low of 61.61 to a high of $99.75. The average price target represents an increase of 4.78% from its latest reported closing price of 77.68.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Pinnacle West Capital is 4,033MM, a decrease of 11.28%. The projected annual non-GAAP EPS is 4.25.

Pinnacle West Capital Declares $0.86 Dividend

On June 21, 2023 the company declared a regular quarterly dividend of $0.86 per share ($3.46 annualized). Shareholders of record as of August 1, 2023 will receive the payment on September 1, 2023. Previously, the company paid $0.86 per share.

At the current share price of $77.68 / share, the stock’s dividend yield is 4.45%.

Looking back five years and taking a sample every week, the average dividend yield has been 4.04%, the lowest has been 3.03%, and the highest has been 5.56%. The standard deviation of yields is 0.62 (n=235).

The current dividend yield is 0.67 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.97. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.11%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 1104 funds or institutions reporting positions in Pinnacle West Capital. This is an increase of 7 owner(s) or 0.64% in the last quarter. Average portfolio weight of all funds dedicated to PNW is 0.21%, an increase of 7.19%. Total shares owned by institutions increased in the last three months by 1.01% to 114,701K shares. The put/call ratio of PNW is 0.93, indicating a bullish outlook.

What are Other Shareholders Doing?

Lazard Asset Management holds 6,419K shares representing 5.67% ownership of the company. In it’s prior filing, the firm reported owning 6,920K shares, representing a decrease of 7.80%. The firm decreased its portfolio allocation in PNW by 10.43% over the last quarter.

Barrow Hanley Mewhinney & Strauss holds 4,485K shares representing 3.96% ownership of the company. In it’s prior filing, the firm reported owning 5,143K shares, representing a decrease of 14.68%. The firm decreased its portfolio allocation in PNW by 58.51% over the last quarter.

Invesco holds 4,087K shares representing 3.61% ownership of the company. In it’s prior filing, the firm reported owning 4,627K shares, representing a decrease of 13.20%. The firm decreased its portfolio allocation in PNW by 92.00% over the last quarter.

GLIFX – Lazard Global Listed Infrastructure Portfolio Institutional Shares holds 3,915K shares representing 3.45% ownership of the company. In it’s prior filing, the firm reported owning 3,997K shares, representing a decrease of 2.10%. The firm decreased its portfolio allocation in PNW by 3.17% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 3,490K shares representing 3.08% ownership of the company. In it’s prior filing, the firm reported owning 3,429K shares, representing an increase of 1.76%. The firm decreased its portfolio allocation in PNW by 2.05% over the last quarter.

Pinnacle West Capital Background Information
(This description is provided by the company.)

Pinnacle West Capital Corp., an energy holding company based in Phoenix, has consolidated assets of about $19 billion, about 6,300 megawatts of generating capacity and 6,200 employees in Arizona and New Mexico. Through its principal subsidiary, Arizona Public Service, the company provides retail electricity service to nearly 1.3 million Arizona homes and businesses.

This article originally appeared on Fintel

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