AltaGas (TSE:ALA) Reaches New 12-Month High – Here’s What Happened

AltaGas Ltd. (TSE:ALA) shares hit a new 52-week high during mid-day trading on Thursday. The company traded as high as C$58.14 and last traded at C$55.80, with a volume of 199,886 shares changing hands. The stock had previously closed at C$56.21.

Key Headlines Impacting AltaGas

Here are the key news stories impacting AltaGas this week:

• Positive Sentiment: Normalized net income increased: AltaGas reported higher third-quarter normalized net income, indicating improved underlying profitability and providing a positive earnings catalyst. AltaGas Q3 Normalized Net Income Rises
• Positive Sentiment: Management expects a strong full-year finish: AltaGas’ CEO said the company expects full-year results to land near the high end of its guidance range. That signals confidence in operating performance and could support investor expectations for the remainder of the year. AltaGas CEO expects full-year results near high-end of guidance
• Positive Sentiment: Analysts raised their valuation targets: National Bank Financial lifted its target from C$60 to C$61 while maintaining an “outperform” rating. Scotia raised its target from C$61 to C$63 and retained a “sector outperform” rating. The revisions reflect increased confidence in AltaGas’ earnings outlook and imply meaningful potential appreciation from recent trading levels. National Bank Financial AltaGas recommendations Scotia AltaGas recommendations
• Neutral Sentiment: Quarterly results provide additional context: AltaGas reported C$0.29 in quarterly EPS and C$3.43 billion in revenue, with a 4.59% net margin and 7.00% return on equity. Without a stated comparison with analyst estimates, the immediate earnings surprise is unclear. AltaGas quarterly earnings results

Wall Street Analyst Weigh In

Several research firms have weighed in on ALA. Royal Bank Of Canada boosted their target price on shares of AltaGas from C$55.00 to C$59.00 and gave the company an “outperform” rating in a report on Friday, July 31st. BMO Capital Markets upped their price objective on shares of AltaGas from C$54.00 to C$59.00 and gave the company an “outperform” rating in a research note on Friday, July 31st. National Bank Financial boosted their target price on AltaGas from C$60.00 to C$61.00 and gave the company an “outperform” rating in a report on Friday. Scotiabank upped their target price on AltaGas from C$57.00 to C$62.00 and gave the company a “sector outperform” rating in a research report on Tuesday, July 21st. Finally, Canadian Imperial Bank of Commerce lowered AltaGas from an “outperformer” rating to a “hold” rating and set a C$58.00 price target on the stock. in a research report on Thursday, October 22nd. Seven equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of C$58.10.

AltaGas Trading Down 1.2%

The company has a debt-to-equity ratio of 112.99, a quick ratio of 0.43 and a current ratio of 0.86. The stock has a market capitalization of C$17.32 billion, a PE ratio of 28.04, a price-to-earnings-growth ratio of -4.97 and a beta of 0.32. The business’s 50-day moving average is C$53.94 and its two-hundred day moving average is C$51.01.

AltaGas (TSE:ALA) last announced its quarterly earnings data on Thursday, October 29th. The company reported C$0.29 EPS for the quarter. AltaGas had a net margin of 4.59% and a return on equity of 7.00%. The company had revenue of C$3.43 billion during the quarter. As a group, equities research analysts anticipate that AltaGas Ltd. will post 2.30 earnings per share for the current year.

AltaGas Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, September 29th. Stockholders of record on Tuesday, September 29th were paid a dividend of $0.3340 per share. This represents a $1.34 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date was Wednesday, September 16th. AltaGas’s payout ratio is 65.56%.

About AltaGas

AltaGas is a leading North American infrastructure company that connects customers and markets to affordable and reliable sources of energy. The Company operates a diversified, lower-risk, high-growth Utilities and Midstream business that is focused on delivering resilient and durable value for its stakeholders.