Investment analysts at Zacks Research have recently downgraded Clearway Energy (NYSE:CWEN) from a “strong-buy” rating to a “hold” rating, according to a report released on November 4, 2023. This shift reflects changing perceptions about the company’s future performance as several other financial institutions reevaluate their positions on the stock.
On the same day, CIBC upgraded Clearway Energy from a “neutral” rating to a “sector outperform” rating, while also raising their price target from $37.00 to $38.00. Roth Mkm also took action, increasing their target price on shares from $39.00 to $40.00 and maintaining a “buy” rating. Other firms, including Evercore ISI and Royal Bank of Canada, have recently initiated coverage, providing varied ratings and price targets.
In total, research analysts currently have one “Strong Buy” rating, six “Buy” ratings, and four “Hold” ratings for Clearway Energy. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $37.71.
Financial Performance Overview
Clearway Energy released its quarterly earnings on November 4, 2023. The company reported earnings per share (EPS) of $2.00, significantly exceeding analysts’ consensus estimates of $0.32 by $1.68. Despite this strong performance, the company experienced a revenue decline of 11.7% year-over-year, with total revenue for the quarter reported at $429.00 million, slightly above the anticipated $427.72 million.
The company’s net margin stood at 20.07%, while its return on equity was measured at 4.96%. Analysts predict that Clearway Energy will post an EPS of $0.83 for the current fiscal year, indicating cautious expectations moving forward.
Institutional Investor Activity
Recent changes among institutional investors reflect varying confidence levels in Clearway Energy. Caitong International Asset Management Co. Ltd. increased its stake in the company by an impressive 280.9% in the third quarter, now owning 956 shares valued at approximately $27,000. Similarly, National Bank of Canada FI raised its holdings by 201.9%, acquiring an additional 652 shares for a total of 975 shares worth about $28,000.
Other notable investments include a new position acquired by Mather Group LLC and a significant increase in holdings by Geneos Wealth Management Inc., which now owns 1,235 shares valued at $41,000. Overall, institutional and hedge fund ownership now represents 84.53% of Clearway Energy’s stock.
Clearway Energy, established in 2013 and rebranded in 2018, is headquartered in the United States and focuses on a diverse portfolio that includes both clean and conventional energy generation assets. The company’s operations are supported by long-term power purchase agreements, which provide a stable cash flow structure essential for its growth and sustainability in the competitive energy market.
As investors continue to monitor these developments, the response from the market will be crucial in shaping the future outlook for Clearway Energy.
