Schroder Investment Management Group has decreased its holdings in Ameren Corporation (NYSE: AEE) by 0.3% in the second quarter of 2023, according to a recent filing with the Securities and Exchange Commission (SEC). The firm now holds 315,367 shares of the utility provider after selling 821 shares during this period. As of its latest report, Schroder’s stake in Ameren is valued at approximately $30.3 million, representing 0.12% of the company.
A number of other institutional investors have also been active in adjusting their positions in Ameren. Notably, Vanguard Group Inc. increased its stake by 3.7% during the same quarter, bringing its total to 35,582,578 shares, valued at around $3.42 billion. Price T Rowe Associates Inc. raised its position by 5.0% in the first quarter, now owning 28,404,577 shares, worth $2.85 billion.
Geode Capital Management LLC has also expanded its holdings, increasing its stake by 2.7% in the second quarter, now having 7,242,392 shares valued at approximately $692.8 million. Invesco Ltd. significantly boosted its holdings by 16.1% in the first quarter, acquiring an additional 646,000 shares for a total of 4,658,775 shares, valued at $467.7 million. Furthermore, AllianceBernstein L.P. increased its position by a remarkable 51.7% during the first quarter, now controlling 3,576,385 shares, worth around $359.1 million. Collectively, institutional investors and hedge funds now own 79.09% of Ameren’s stock.
Recent Insider Transactions
In related developments, Chief Financial Officer Michael L. Moehn sold 6,500 shares of Ameren’s stock on November 3, 2023, at an average price of $101.44 per share. This transaction amounted to $659,360, resulting in a 3.16% decrease in Moehn’s overall position, which now stands at 198,973 shares, valued at approximately $20.2 million. Corporate insiders own 0.42% of the company’s stock.
Ameren’s Financial Performance
Ameren recently disclosed its quarterly earnings on November 5, 2023, reporting an earnings per share (EPS) of $2.17, exceeding analysts’ expectations of $2.10 by $0.07. The company generated revenue of $2.7 billion for the quarter, surpassing the consensus estimate of $2.64 billion. Ameren’s net margin stood at 14.55%, with a return on equity of 10.38%. This revenue reflects a notable year-over-year increase of 24.2%, compared to $1.87 EPS reported in the same quarter last year. For fiscal year 2026, Ameren has projected an EPS guidance of $5.250-$5.450, while the guidance for fiscal year 2025 is between $4.900-$5.100. Analysts anticipate Ameren will post an EPS of $4.93 for the current year.
In addition to its earnings report, Ameren announced a quarterly dividend of $0.71, payable on December 31, 2023, to shareholders of record as of December 9, 2023. This dividend represents an annualized amount of $2.84, yielding 2.8% annually, with a dividend payout ratio of 54.62%.
Analyst Ratings and Market Outlook
Recent analyst reports have shown a positive sentiment towards Ameren’s stock. Royal Bank of Canada upgraded the shares to a “hold” rating, while Morgan Stanley raised its price target from $104.00 to $111.00 and assigned an “outperform” rating. Barclays set a target price of $113.00, while KeyCorp increased its price objective to $109.00, giving Ameren an “overweight” rating. Weiss Ratings reaffirmed a “buy” rating on the shares.
Currently, eight analysts have rated Ameren with a “buy” rating, and four have issued a “hold” rating. According to MarketBeat, the stock has an average rating of “Moderate Buy” with an average target price of $109.50.
Ameren Corporation operates as a public utility holding company in the United States, providing essential services through its subsidiaries across four segments: Ameren Missouri, Ameren Illinois Electric Distribution, Ameren Illinois Natural Gas, and Ameren Transmission. The company is engaged in rate-regulated electric generation, transmission, and distribution as well as natural gas distribution activities.
