Ameren Corporation (NYSE:AEE): A Fundamentally Weighted Stock for Long-Term Investors

Ameren Corporation (NYSE:AEE) has a beta of 0.27, a 12-month trailing P/E ratio of 22.02, and a growth ratio of 2.86. The stock’s Relative Strength Index (RSI) is 52.92, with weekly volatility at 1.14% and ATR at 1.16. The AEE stock’s 52-week price range has touched low of $67.14 and a $86.90 high. Its shares traded higher over the last trading session, gaining 0.63% on 05/28/21. The shares fell to a low of $83.84 before closing at $84.20. Intraday shares traded counted 1.41 million, which was 1.76% higher than its 30-day average trading volume of 1.44M. AEE’s previous close was $83.67 while the outstanding shares total 254.40M.

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Investors have identified the Utilities – Regulated Electric company Ameren Corporation as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $21.38 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Ameren Corporation (AEE) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For AEE, the company has in raw cash 140.0 million on their books with 8.0 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 1.82 billion total, with 2.31 billion as their total liabilities.

AEE were able to record -923.0 million as free cash flow during the 08/06/2021 quarter of the year, this saw their quarterly net cash flow reduce by -129.0 million. In cash movements, the company had a total of -35.0 million as operating cash flow.

Potential earnings growth for Ameren Corporation (AEE)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/06/2021 quarter of the year, Ameren Corporation recorded a total of 1.57 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 8.05% coming in sequential stages and their sales for the 08/06/2021 quarter increasing by 15.2%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 1.25 billion trying to sell their products during the last quarter, with the result yielding a gross income of 316.0 million. This allows shareholders to hold on to 254.40M with the recently reported earning now reading 0.92 cents per share. This is a figure that compared to analyst’s prediction for their 08/06/2021 (0.91 cents a share).

Having a look at the company’s valuation, the company is expected to record 4.02 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on AEE sounds very interesting.

Is the stock of AEE attractive?

In related news, SVP & CNO of Subsidiary, Diya Fadi M sold 8,000 shares of the company’s stock in a transaction that recorded on May 27. The sale was performed at an average price of 83.91, for a total value of 671,280. As the sale deal closes, the Chmn & President of Subsidiary, MARK RICHARD J now sold 6,000 shares of the company’s stock, valued at 487,020. Also, SVP of Subsidiary, BIRK MARK C sold 2,000 shares of the company’s stock in a deal that was recorded on Mar 11. The shares were price at an average price of 76.10 per share, with a total market value of 152,200. Following this completion of acquisition, the Executive VP & CFO, MOEHN MICHAEL L now holds 10,000 shares of the company’s stock, valued at 761,000. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.60%.

10 out of 16 analysts covering the stock have rated it a Buy, while 5 have maintained a Hold recommendation on Ameren Corporation. 0 analysts has assigned a Sell rating on the AEE stock. The 12-month mean consensus price target for the company’s shares has been set at $87.77.