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

Pinnacle West Capital Co. (NYSE:PNW) announced a quarterly dividend on Wednesday, October 23rd, RTT News reports. Investors 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 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 increased its dividend payment by an average of 3.0% per year 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% indicating that its dividend is currently covered by earnings, but may not be in the future if the company’s earnings fall. 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 Stock Performance

Shares of PNW opened at $85.83 on Friday. Pinnacle West Capital has a 12-month low of $65.20 and a 12-month high of $91.57. The stock has a market cap of $9.75 billion, a P/E ratio of 15.87, a PEG ratio of 2.18 and a beta of 0.52. The company has a current ratio of 0.66, a quick ratio of 0.48 and a debt-to-equity ratio of 1.28. The company has a 50-day moving average of $88.26 and a two-hundred day moving average of $82.18.

Pinnacle West Capital (NYSE:PNW) last issued its quarterly earnings data 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. The firm had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.21 billion. Pinnacle West Capital had a return on equity of 9.75% and a net margin of 12.65%. The company’s quarterly revenue was up 15.7% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.94 EPS. As a group, research analysts predict that Pinnacle West Capital will post 4.88 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on PNW shares. Jefferies Financial Group began coverage on Pinnacle West Capital in a research report on Thursday, September 19th. They set a “buy” rating and a $104.00 price target for the company. Morgan Stanley lifted their price objective on Pinnacle West Capital from $78.00 to $83.00 and gave the stock an “equal weight” rating in a research report on Wednesday, September 25th. 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 report on Wednesday, October 16th. Finally, StockNews.com upgraded shares of Pinnacle West Capital from a “sell” rating to a “hold” rating in a report on Monday, August 5th. Seven investment analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $80.79.

Insider Transactions at Pinnacle West Capital

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

Pinnacle West Capital Company 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.