On Friday, UBS downgraded the stock rating of PPL Corp (NYSE:PPL), a firm in the Utilities sector, amidst fluctuating share prices. The company's shares saw a slight increase of 2.5% on Friday.
However, the company's stock has experienced notable decreases over recent months, deviating significantly from moving averages. Trading volume for the firm was substantial, with 6.37 million shares changing hands, and a negative Weighted Alpha indicating a poor yearly performance.
Insider trading was observed at PPL Corp, with substantial shares being sold by company executives. The company's market capitalization stands at $16.92 billion, slightly lower than the $17.32 billion figure provided by InvestingPro's real-time metrics. Valuation ratios include a price-to-earnings ratio of 23.59, a forward P/E of 13.41, a Price-to-Sales Ratio of 1.95, and a Price-to-Book ratio of 1.21. The InvestingPro data, however, indicates a P/E ratio of 22.73 and a Price / Book LTM2023.Q2 of 1.32.
Profitability ratios reveal an operating margin of 17.65 percent, a profit margin of 8.29 percent, and a gross margin of 22.28 percent for PPL Corp. According to InvestingPro data, the company's gross profit margin LTM2023.Q2 is 35.9% and operating income margin LTM2023.Q2 is 17.37%. Despite this, the firm's stock trades below its 52-week high and above its 52-week low within a range of $22.20-$31.74. The InvestingPro Tips highlight that the stock is trading near its 52-week low.
PPL Corp has a beta value of 0.86, a quick ratio of 0.90, and a historic volatility of 24.56%. Despite experiencing a five-year decline in annual earnings per share by 10%, the company posted an EPS growth of 12.15% this year and is forecasted to reach earnings of 0.39 per share in the next fiscal year. These figures are in line with InvestingPro Tips, which suggest that the company is expected to be profitable this year and has been profitable over the last twelve months.
These projections contribute to a return on equity of 5.16%. The company's gross margin stands at +21.83%, with a receivables turnover of 6.21. PPL Corp's diluted EPS for the trailing twelve months is recorded at 0.97, with a net margin of +9.02%. Market analysts predict that the company's EPS will grow by 17.21% over the next five years.
Interestingly, one of the InvestingPro Tips points out that PPL Corp operates with a significant debt burden, something that investors should keep in mind. Another noteworthy point from the tips is that the company has maintained dividend payments for 53 consecutive years, a testament to its financial stability. For more tips and insights like these, you can visit InvestingPro, which offers a wealth of additional tips and real-time metrics.
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