Fortis (NYSE:FTS) Hits New 1-Year High Following Dividend Announcement

Fortis (NYSE:FTS) shares hit a new 52-week high during mid-day trading on Monday after the company announced a dividend. The company traded as high as $59.40 and last traded at $59.4060, with a volume of 414,656 shares trading hands. The stock had previously closed at $58.67.

The newly announced dividend which will be paid on Tuesday, December 1st. Investors of record on Tuesday, November 17th will be issued a dividend of C$0.67 per share. This is an increase from Fortis’s previous quarterly dividend of C$0.64. This represents a $2.66 annualized dividend and a yield of 4.4%. The ex-dividend date of this dividend is Tuesday, November 17th. Fortis’s dividend payout ratio is currently 73.68%.

Wall Street Analysts Forecast Growth

FTS has been the subject of a number of recent analyst reports. Wolfe Research set a $50.00 price objective on shares of Fortis in a research report on Tuesday, August 4th. Barclays dropped their target price on Fortis from $60.00 to $56.00 and set an “overweight” rating on the stock in a research report on Tuesday, September 29th. Canadian Imperial Bank of Commerce reiterated a “neutral” rating on shares of Fortis in a research report on Wednesday, October 28th. Scotiabank reissued a “sector perform” rating on shares of Fortis in a research note on Tuesday, August 4th. Finally, Weiss Ratings reissued a “buy (b)” rating on shares of Fortis in a report on Thursday, October 15th. Three analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, Fortis currently has a consensus rating of “Hold” and an average price target of $65.00.

Fortis Stock Performance

The stock’s 50 day moving average price is $55.04 and its two-hundred day moving average price is $55.99. The company has a current ratio of 0.56, a quick ratio of 0.47 and a debt-to-equity ratio of 1.27. The firm has a market capitalization of $31.43 billion, a price-to-earnings ratio of 24.67 and a beta of 0.42.

Fortis (NYSE:FTS) last announced its quarterly earnings data on Tuesday, November 3rd. The utilities provider reported $0.66 EPS for the quarter, beating the consensus estimate of $0.63 by $0.03. The firm had revenue of $2.12 billion during the quarter, compared to analysts’ expectations of $2.27 billion. Fortis had a net margin of 14.17% and a return on equity of 7.16%. On average, analysts forecast that Fortis will post 2.55 EPS for the current year.

Key Headlines Impacting Fortis

Here are the key news stories impacting Fortis this week:

• Positive Sentiment: Fortis reported Q3 adjusted earnings of $0.66 per share, above the $0.63 consensus and up from $0.59 a year earlier. The earnings-call coverage also characterized management’s remarks as strongly positive and highlighted record growth investment. Fortis Q3 earnings report Earnings call highlights
• Positive Sentiment: The company raised its quarterly dividend 3.9%, from C$0.64 to C$0.67 per share. The payout is annualized at C$2.66, with the cited yield at 4.5%; the increase may appeal to income-focused investors. Fortis Q3 results and dividend announcement
• Neutral Sentiment: Fortis released a new five-year capital outlook. Planned investment may support future growth, though the announcement details provided here do not quantify its expected returns or funding needs. Fortis capital outlook
• Negative Sentiment: Revenue was $2.12 billion, below analysts’ $2.27 billion estimate. This shortfall tempers the positive earnings surprise. Fortis quarterly results

Institutional Investors Weigh In On Fortis

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Trust Co. of Vermont purchased a new stake in Fortis during the second quarter worth $26,000. Scarborough Advisors LLC acquired a new stake in shares of Fortis during the 1st quarter worth about $29,000. CoreCap Advisors LLC grew its holdings in shares of Fortis by 78.4% during the third quarter. CoreCap Advisors LLC now owns 544 shares of the utilities provider’s stock worth $29,000 after buying an additional 239 shares in the last quarter. Aberdeen Wealth Management LLC acquired a new stake in Fortis during the second quarter worth approximately $31,000. Finally, Allworth Financial LP purchased a new stake in Fortis in the 2nd quarter worth approximately $62,000. 57.77% of the stock is currently owned by institutional investors and hedge funds.

About Fortis

Fortis Inc is a Canadian utility holding company that owns and operates regulated electric and natural gas utilities. Its businesses are primarily focused on the transmission and distribution of electricity, natural gas distribution, and related energy infrastructure.

Through its portfolio of utility subsidiaries, Fortis serves customers across Canada and the United States, with additional operations in the Caribbean. Its businesses include electric utilities, natural gas utilities, and electric transmission assets, providing essential energy services to residential, commercial, and industrial customers.

Fortis has expanded from its Canadian utility origins through acquisitions and investments in regulated infrastructure.