Burney Co. has significantly increased its investment in Advanced Energy Industries, Inc. (NASDAQ:AEIS) by acquiring a new position during the second quarter of 2023. According to a recent filing with the Securities and Exchange Commission (SEC), Burney Co. purchased 4,810 shares of the electronics manufacturer, valued at approximately $637,000. This move reflects a growing interest among institutional investors in Advanced Energy Industries, which specializes in precision power conversion and control solutions.
In addition to Burney Co., several other institutional investors have recently adjusted their stakes in Advanced Energy Industries. Notably, the Teacher Retirement System of Texas invested $914,000 in the company during the first quarter. Cerity Partners LLC notably increased its position by 215.3%, acquiring an additional 7,644 shares, bringing its total holdings to 11,195 shares valued at approximately $1,067,000. Other significant investments include Moloney Securities Asset Management LLC, which purchased a stake worth $253,000, and Dynamic Technology Lab Private Ltd, which invested about $363,000 in the same quarter.
Institutional ownership in Advanced Energy Industries is substantial, with hedge funds and other institutional investors collectively holding 99.67% of the stock.
Analyst Ratings and Company Performance
The stock’s appeal among analysts is evident, as several research firms have recently updated their ratings for Advanced Energy Industries. On October 8, 2023, Stifel Nicolaus raised its price target from $210.00 to $230.00, maintaining a “buy” rating. Weiss Ratings reiterated a “hold (c)” rating, while Zacks Research upgraded the company from “hold” to “strong-buy” on September 10, 2023. Additionally, Benchmark lifted their target price from $150.00 to $225.00 with a “buy” recommendation.
Currently, one research analyst has assigned a “strong buy” rating, seven analysts have given “buy” ratings, and four have issued “hold” ratings. According to MarketBeat, the average rating stands at “moderate buy” with a consensus price target of $201.67.
Insider Trading and Stock Performance
In related news, Executive Vice President John Donaghey sold 1,000 shares of the company’s stock on August 13, 2023, at an average price of $160.73, totaling $160,730.00. Following this transaction, Donaghey’s ownership in the company decreased by 9.07%, resulting in a remaining stake of 10,029 shares valued at approximately $1,611,961.17. Insiders hold about 1.20% of the company’s stock.
Advanced Energy Industries has seen a notable surge in its share price, opening at $225.80 on Thursday, marking an increase of 15.8%. The company reports a debt-to-equity ratio of 0.45, a quick ratio of 2.97, and a current ratio of 4.09. Its market capitalization stands at $8.52 billion, with a price-to-earnings (PE) ratio of 102.17 and a beta of 1.55.
In its most recent quarterly earnings report on November 4, 2023, Advanced Energy Industries exceeded expectations by reporting earnings per share (EPS) of $1.74, surpassing the consensus estimate of $1.47 by $0.27. The company generated $463.30 million in revenue for the quarter, exceeding the anticipated $441.54 million. Compared to the same quarter last year, revenue increased by 23.8%.
Dividend Announcement
Advanced Energy Industries also announced a forthcoming quarterly dividend of $0.10 per share, scheduled for distribution on December 5, 2023. Stockholders of record on November 24, 2023, will be eligible for this dividend, which represents an annualized payment of $0.40 and a yield of 0.2%. The company’s dividend payout ratio currently stands at 18.10%.
Founded in the United States, Advanced Energy Industries, Inc. provides essential power conversion and control solutions, particularly for semiconductor and thin film plasma processes. As the demand for precision power solutions continues to rise, the company is well-positioned to meet the needs of its diverse clientele.
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