Convergence Investment Partners LLC Buys New Stake in Pinnacle West Capital Co. (NYSE:PNW)

Convergence Investment Partners LLC bought a new stake in Pinnacle West Capital Co. (NYSE:PNW - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm bought 9,326 shares of the utilities provider's stock, valued at approximately $712,000.

A number of other institutional investors and hedge funds also recently modified their holdings of the business. Capital Research Global Investors grew its position in shares of Pinnacle West Capital by 97.5% in the first quarter. Capital Research Global Investors now owns 12,851,930 shares of the utilities provider's stock valued at $960,425,000 after purchasing an additional 6,344,121 shares in the last quarter. Lazard Asset Management LLC lifted its stake in shares of Pinnacle West Capital by 72.7% in the 1st quarter. Lazard Asset Management LLC now owns 6,719,397 shares of the utilities provider's stock valued at $502,139,000 after acquiring an additional 2,828,450 shares during the last quarter. Zimmer Partners LP purchased a new position in Pinnacle West Capital during the 1st quarter valued at about $198,409,000. Norges Bank purchased a new position in Pinnacle West Capital during the 4th quarter valued at about $112,914,000. Finally, Victory Capital Management Inc. increased its holdings in Pinnacle West Capital by 1,267.8% during the 4th quarter. Victory Capital Management Inc. now owns 311,861 shares of the utilities provider's stock valued at $22,404,000 after purchasing an additional 289,061 shares during the period. 91.51% of the stock is owned by hedge funds and other institutional investors.

Pinnacle West Capital Stock Up 0.8 %

Shares of PNW stock traded up $0.74 during trading hours on Tuesday, reaching $88.26. 572,452 shares of the company's stock were exchanged, compared to its average volume of 1,114,007. The company has a market cap of $10.02 billion, a price-to-earnings ratio of 19.23, a P/E/G ratio of 2.23 and a beta of 0.50. The company has a current ratio of 0.66, a quick ratio of 0.48 and a debt-to-equity ratio of 1.28. Pinnacle West Capital Co. has a fifty-two week low of $65.20 and a fifty-two week high of $89.39. The stock's 50 day moving average is $83.17 and its 200-day moving average is $77.21.

Pinnacle West Capital (NYSE:PNW - Get Free Report) last posted its earnings results on Thursday, August 1st. The utilities provider reported $1.76 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.31 by $0.45. Pinnacle West Capital had a net margin of 12.65% and a return on equity of 9.75%. The business had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.21 billion. During the same period in the prior year, the company posted $0.94 EPS. The company's revenue for the quarter was up 15.7% on a year-over-year basis. Analysts predict that Pinnacle West Capital Co. will post 4.75 earnings per share for the current fiscal year.

Pinnacle West Capital Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 3rd. Shareholders of record on Thursday, August 1st will be paid a $0.88 dividend. The ex-dividend date is Thursday, August 1st. This represents a $3.52 dividend on an annualized basis and a yield of 3.99%. Pinnacle West Capital's dividend payout ratio is presently 76.69%.

Analysts Set New Price Targets

A number of analysts have recently commented on the company. Barclays dropped their price target on Pinnacle West Capital from $81.00 to $78.00 and set an "overweight" rating on the stock in a research report on Tuesday, July 2nd. StockNews.com raised Pinnacle West Capital from a "sell" rating to a "hold" rating in a report on Monday, August 5th. Wells Fargo & Company upped their price objective on Pinnacle West Capital from $80.00 to $87.00 and gave the stock an "equal weight" rating in a research note on Friday, August 2nd. LADENBURG THALM/SH SH upgraded Pinnacle West Capital from a "neutral" rating to a "buy" rating and raised their price objective for the company from $74.00 to $83.50 in a research report on Thursday, June 6th. Finally, Morgan Stanley increased their price target on shares of Pinnacle West Capital from $72.00 to $78.00 and gave the company an "equal weight" rating in a report on Friday, August 23rd. Eight research analysts have rated the stock with a hold rating and five have given a buy rating to the stock. Based on data from MarketBeat.com, Pinnacle West Capital has an average rating of "Hold" and a consensus price target of $77.95.

Insider Activity

In related news, EVP Robert Edgar Smith sold 4,950 shares of the business's stock in a transaction dated Friday, August 9th. The shares were sold at an average price of $85.80, for a total transaction of $424,710.00. Following the sale, the executive vice president now owns 6,397 shares of the company's stock, valued at $548,862.60. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders own 0.23% of the company's stock.

Pinnacle West Capital Profile

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.