Pinnacle West Capital Co. (NYSE:PNW) Raises Dividend to $0.90 Per Share

Pinnacle West Capital Co. (NYSE:PNW) declared a quarterly dividend on Wednesday, October 23rd, RTT News reports. Shareholders of record on Monday, November 4th will be paid a dividend of 0.895 per share by the utilities provider on Monday, December 2nd. This represents a $3.58 dividend on an annualized basis and a dividend yield of 4.17%. The ex-dividend date is Monday, November 4th. This is a boost from Pinnacle West Capital’s previous quarterly dividend of $0.88.

Pinnacle West Capital has raised its dividend by an average of 3.0% annually over the last three years and has raised its dividend annually for the last 12 consecutive years. Pinnacle West Capital has a dividend payout ratio of 75.4% meaning its dividend is currently covered by earnings, but may not be in the future if the company’s earnings fall. Research analysts expect Pinnacle West Capital to earn $4.67 per share next year, which means the company should continue to be able to cover its $3.58 annual dividend with an expected future payout ratio of 76.7%.

Pinnacle West Capital Price Performance

PNW opened at $85.83 on Friday. The company has a debt-to-equity ratio of 1.28, a current ratio of 0.66 and a quick ratio of 0.48. The company’s 50 day simple moving average is $88.26 and its 200-day simple moving average is $82.26. Pinnacle West Capital has a one year low of $65.20 and a one year high of $91.57. The stock has a market capitalization of $9.75 billion, a P/E ratio of 15.87, a price-to-earnings-growth ratio of 2.18 and a beta of 0.52.

Pinnacle West Capital (NYSE:PNW) last released its earnings results on Thursday, August 1st. The utilities provider reported $1.76 EPS for the quarter, beating the consensus estimate of $1.31 by $0.45. The company had revenue of $1.31 billion during the quarter, compared to analysts’ expectations of $1.21 billion. Pinnacle West Capital had a return on equity of 9.75% and a net margin of 12.65%. The business’s revenue for the quarter was up 15.7% on a year-over-year basis. During the same period last year, the firm earned $0.94 EPS. Sell-side analysts anticipate that Pinnacle West Capital will post 4.88 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on PNW shares. Wells Fargo & Company upped their target price on shares of Pinnacle West Capital from $87.00 to $90.00 and gave the company an “equal weight” rating in a research report on Wednesday, October 16th. StockNews.com raised shares of Pinnacle West Capital from a “sell” rating to a “hold” rating in a research note on Monday, August 5th. Morgan Stanley lifted their target price on shares of Pinnacle West Capital from $78.00 to $83.00 and gave the stock an “equal weight” rating in a report on Wednesday, September 25th. Finally, Jefferies Financial Group started coverage on Pinnacle West Capital in a research note on Thursday, September 19th. They issued a “buy” rating and a $104.00 price target on the stock. Seven analysts have rated the stock with a hold rating and six have given a buy rating to the company’s stock. According to data from MarketBeat, Pinnacle West Capital presently has an average rating of “Hold” and a consensus price target of $80.79.

Insider Activity at Pinnacle West Capital

In related news, Director Susan T. Flanagan bought 500 shares of the company’s stock in a transaction on Monday, August 5th. The shares were purchased at an average cost of $86.54 per share, for a total transaction of $43,270.00. Following the acquisition, the director now owns 750 shares of the company’s stock, valued at approximately $64,905. This represents a 200.00 % increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. In related news, EVP Robert Edgar Smith sold 4,950 shares of Pinnacle West Capital stock in a transaction that occurred on Friday, August 9th. The stock was sold at an average price of $85.80, for a total value of $424,710.00. Following the sale, the executive vice president now owns 6,397 shares of the company’s stock, valued at approximately $548,862.60. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Susan T. Flanagan purchased 500 shares of Pinnacle West Capital stock in a transaction on Monday, August 5th. The shares were purchased at an average cost of $86.54 per share, with a total value of $43,270.00. Following the transaction, the director now owns 750 shares in the company, valued at approximately $64,905. The trade was a 200.00 % increase in their ownership of the stock. The disclosure for this purchase can be found here. 0.23% of the stock is owned by insiders.

About Pinnacle West Capital

Pinnacle West Capital Corporation, through its subsidiary, provides retail and wholesale electric services primarily in the state of Arizona. The company engages in the generation, transmission, and distribution of electricity using coal, nuclear, gas, oil, and solar generating facilities. Its transmission facilities include overhead lines and underground lines; and distribution facilities consist of overhead lines and underground primary cables.