Fortis Stock Analysis: A Closer Look at Dividends and Trading Volume

Date: August 5, 2023

Fortis, a prominent company in the energy sector, recently caught the attention of investment analysts as StockNews.com began coverage on its shares. In this article, we will delve into the details of Fortis’ stock performance, dividend payouts, and trading volume to gain a comprehensive understanding of its current standing in the Market.

Dividend Payouts and Yield:
On August 5th, Fortis disclosed its upcoming quarterly dividend payment scheduled for September 1st. Shareholders who are recorded on August 21st will receive a dividend of $0.427 per share. This amounts to an annualized dividend payout of $1.71 per share, representing a yield of 4.25%. These figures demonstrate the company’s commitment to rewarding investors with consistent dividends.

Trading Volume and Price Performance:
Trading activity of NYSE:FTS on Friday showed promising signs for Fortis. The stock reached $40.19, rising by $0.39 from the previous session. This increase might indicate growing investor interest or positive market sentiment surrounding the company.

Comparing against its average trading volume of 573,841 shares, Fortis experienced somewhat lower trading activity with only 261,815 shares exchanged on that particular day. It would be intriguing to explore whether this was an anomaly or part of a gradual trend within the market environment.

Historical Price Range:
Fortis has experienced fluctuations in its stock price throughout the year-ranging from a low point of $34.76 to a high point of $47.89 over a fifty-two week period ending on August 5th, 2023. These figures indicate price volatility in response to various industry and economic factors that have influenced investor sentiment toward the stock.

Moving Averages and Key Ratios:
Monitoring moving averages can provide insights into the stock’s performance trend. For Fortis, it is noteworthy to observe its fifty-day moving average of $42.63 and two-hundred-day moving average of $42.40. These figures suggest a relatively stable trajectory as the company navigates market forces.

Furthermore, evaluating key ratios is integral when comprehending a company’s financial health. Fortis currently possesses a current ratio of 0.68 and a quick ratio of 0.58, indicating that the company may face some liquidity challenges in the short term. Additionally, its debt-to-equity ratio is at 1.25, suggesting a notable level of leverage.

Market Capitalization and Other Factors:
With regards to market capitalization, Fortis boasts an impressive $19.55 billion valuation as of August 5th, 2023. The company’s price-earnings ratio stands at 18.01, indicating that investors are willing to pay approximately 18 times the earnings per share for Fortis stock.

Moreover, considering the PEG ratio of 3.41 highlights potential growth prospects in relation to its earnings growth rate over time. Finally, the beta coefficient of 0.44 suggests that Fortis exhibits lower volatility compared to the overall market.

Conclusion:
As StockNews.com initiated coverage on shares of Fortis with a “hold” rating earlier in May, it remains vital for investors and analysts alike to keep a close eye on the company’s performance and relevant market trends going forward.

Fortis’ ability to sustain robust dividend payouts combined with moderate trading activity signals stability within an uncertain economic landscape. By understanding historical price ranges, observing moving averages, and analyzing key ratios such as debt levels and liquidity ratios, stakeholders can make informed decisions regarding their investments in this energy industry leader

Fortis Inc. Anticipated to Post Strong Q2 Earnings, Demonstrates Strong Market Confidence and Potential for Growth

Fortis Inc. (NYSE:FTS), a prominent utilities provider, is anticipated to post strong earnings for the second quarter of 2024, according to a report by investment analysts at Raymond James. The report, released on August 2nd, highlights that Raymond James analyst D. Quezada predicts Fortis will achieve earnings of $0.51 per share for the quarter.

Raymond James currently holds an “Outperform” rating and has assigned a target price of $62.00 for the stock. With the consensus estimate standing at $2.23 per share for Fortis’ current full-year earnings, this Q2 prediction aligns with positive market expectations.

In addition to its impressive forecasted earnings, Fortis recently announced its quarterly dividend, which will be paid on September 1st. Shareholders who are recorded as investors as of August 21st will receive a dividend of $0.427 per share. Therefore, on an annualized basis, this represents a dividend of $1.71 and an attractive yield of 4.25%. It is important to note that the ex-dividend date for this payment is August 18th.

Fortis’s payout ratio currently stands at approximately 76%, indicating solid financial health and the ability to reward shareholders through dividends.

On August 2nd, Fortis reported its previous quarter’s earnings results, revealing that it achieved $0.46 in earnings per share – meeting analysts’ consensus estimates precisely. The company generated revenue totalling $1.93 billion during this period; although slightly below analyst predictions of $1.99 billion.

Importantly, Fortis demonstrated a return on equity (ROE) value of 6.67% and boasted a net margin of 12.40%. This indicates efficient management strategies and healthy profitability despite potential market challenges.

Several institutional investors have recently made notable changes to their positions in FTS shares as well. Bank of Montreal Can purchased a new stake in Fortis in the second quarter, adding approximately $1,134,029,000 to their holdings.

Vanguard Group Inc. has also shown its faith in Fortis by increasing its holdings in the third quarter. The company now owns an impressive 17,872,872 shares of the utilities provider’s stock with an estimated value of $678,990,000—a notable increase after acquiring an additional 675,957 shares during the last quarter.

Further endorsements are highlighted by FIL Ltd’s significant boost in ownership. They increased their position by 11.7% during the first quarter and now own a remarkable 15,423,380 shares of Fortis stock worth $655,622,000—an additional acquisition of 1,613,888 shares demonstrates FIL Ltd’s confidence and belief in Fortis’ future prospects.

1832 Asset Management L.P., a renowned financial management company, also displayed its confidence by lifting its position in FTS shares by 0.6% during the fourth quarter of last year. With current holdings totaling at approximately 9,519,651 shares valued at $381,167,000—from acquiring 58,862 additional shares—it is evident that investment companies recognize the growth potential within Fortis.

Lastly, Scotia Capital Inc., a prominent institution within the finance industry made it clear that they believe in Fortis’ potential as well. With an increase of 100467 shares acquired during Q2 2024 ,Scotia Capital now holds impressive ownership yielding up to $319176000.

Overall institutional investors and hedge funds currently own around 45% of existing FTS stocks—demonstrating strong market confidence within Fortis and recognizing its ability to deliver attractive returns.

In conclusion,Fortis Inc.’s anticipated Q2 earnings reflect market expectations for continued success and profitability for this esteemed utilities provider- thus affirming positive market sentiment regardless of potential market challenges. Amid bullish investor interest, the company’s solid and consistent performance over the years has attracted notable investments from prominent institutional investors.This further underscores Fortis’ strong position within the utilities sector, with sufficient scope for growth and an ability to reward shareholders through dividends.

The post Fortis Stock Analysis: Evaluating Dividends, Trading Volume, and Market Performance appeared first on Best Stocks.