The Ontario Teachers Pension Plan Board has acquired a significant stake in Fortis Inc., purchasing 55,042 shares of the utilities provider for approximately $2,630,000. This move was disclosed in Fortis’s recent Form 13F filing with the Securities and Exchange Commission (SEC).
Other institutional investors have also adjusted their holdings in Fortis. Cullen Frost Bankers Inc. initiated a new position valued at about $28,000 in the first quarter. Similarly, Trust Co. of Toledo NA OH made a new investment worth around $28,000 in the second quarter. Meanwhile, Allworth Financial LP increased its position by 157.3%, now owning 1,253 shares valued at $60,000 after acquiring an additional 766 shares in the last quarter. Other notable investments include Fifth Third Bancorp, which bought shares worth approximately $65,000, and Banque Transatlantique SA, which acquired shares valued at $135,000 during the first quarter. Currently, institutional investors and hedge funds own 57.77% of Fortis stock.
Analysts Assess Fortis Stock Performance
Several brokerages have recently provided insights into Fortis’s stock performance. On August 5, 2023, Desjardins upgraded Fortis shares from a “hold” rating to a “buy” rating. Following this, Weiss Ratings maintained a “buy (b)” rating on October 8, 2023. In contrast, Zacks Research downgraded the stock from a “strong-buy” to a “hold” rating on August 18, 2023. As of October 21, 2023, CIBC reiterated an “outperform” rating. Overall, one investment analyst has rated Fortis with a Strong Buy, five have issued a Buy rating, and six have given a Hold rating. The consensus rating is currently “Moderate Buy” with an average target price of $72.00.
On November 1, 2023, Fortis reported its quarterly earnings, revealing earnings per share (EPS) of $0.59, which fell short of the consensus estimate of $0.61 by $0.02. The company’s revenue for the quarter amounted to $2.08 billion, compared to analysts’ expectations of $2.22 billion. Fortis has a market capitalization of $26.42 billion and a PE ratio of 21.51. The company’s stock opened at $52.27 on the trading day following the announcement.
Fortis Increases Dividend for Shareholders
In a positive development for shareholders, Fortis has declared a quarterly dividend of $0.64 per share, set to be paid on December 1, 2023. This increase from the previous quarterly dividend of $0.44 reflects the company’s strong financial position. The ex-dividend date is scheduled for November 17, 2023. This adjustment indicates an annualized dividend of $2.56 and a yield of 4.9%, with a current dividend payout ratio of 75.83%.
Fortis operates as an electric and gas utility company across Canada, the United States, and the Caribbean. The company serves approximately 447,000 retail customers in southeastern Arizona and an additional 103,000 in Mohave and Santa Cruz counties, with a total generating capacity of 3,408 megawatts, including 68 megawatts of solar capacity and 250 megawatts of wind capacity.
As Fortis continues to navigate the evolving energy landscape, these recent developments highlight its commitment to growth and shareholder value.
