Creative Planning has increased its investment in Fortis Inc. by 6.9%, raising its stake to a total of 77,707 shares valued at approximately $3.71 million. This acquisition, which included an additional 4,999 shares during the second quarter of 2023, reflects growing institutional interest in the utility sector. The information was reported by HoldingsChannel and confirmed in Creative Planning’s latest filing with the Securities and Exchange Commission.
In addition to Creative Planning, other investment firms have also expanded their positions in Fortis. Notably, BNP Paribas Asset Management Holding S.A. enhanced its holdings by 17.5%, now owning 43,743 shares worth around $2.09 million after purchasing 6,510 additional shares. Similarly, Cerity Partners LLC increased its stake by 13.9% in the first quarter, bringing its total to 9,904 shares valued at $451,000. Charles Schwab Investment Management Inc. has also shown confidence in Fortis, with a less significant increase of 0.4%, resulting in ownership of 1,407,311 shares valued at $64.1 million.
Fifth Third Bancorp entered the market with a new position valued at approximately $65,000 in the second quarter, while Goldman Sachs Group Inc. significantly raised its holdings by 218.6%, now controlling 3,648,592 shares worth about $166.3 million. Currently, institutional investors own 57.77% of Fortis’s stock.
Fortis Stock Performance and Dividend Announcement
As of the latest trading session, Fortis shares opened at $51.55. The stock has shown a modest upward trend, with a 50-day moving average of $50.73 and a 200-day moving average of $49.29. Over the past year, Fortis has experienced a low of $40.32 and a high of $52.83. The company boasts a market capitalization of $26.06 billion, a price-to-earnings ratio of 21.21, and a beta of 0.49.
In a recent announcement, Fortis declared a quarterly dividend of $0.64 per share, set to be paid on December 1, 2023. This marks an increase from the previous quarterly dividend of $0.44. Shareholders on record as of November 17, 2023, will receive this dividend, which represents an annualized payout of $2.56 and a yield of 5.0%. The company’s current payout ratio stands at 75.83%.
Analyst Ratings and Future Outlook
Several analysts have recently provided insights on Fortis shares. BMO Capital Markets reiterated a “market perform” rating on November 5, 2023, while CIBC maintained an “outperform” rating on October 21, 2023. National Bankshares and Scotiabank both restated their “sector perform” ratings on November 5 and October 6, respectively. Weiss Ratings has given the stock a “buy (b)” rating, reflecting a generally positive sentiment among analysts.
Currently, one analyst has rated Fortis with a Strong Buy, five have issued Buy ratings, and six have assigned a Hold rating, resulting in an average rating of “Moderate Buy” and an average target price of $72.00, according to MarketBeat.
Fortis Inc. operates as a leading electric and gas utility company across Canada, the United States, and several Caribbean nations. The firm serves approximately 447,000 retail customers in southeastern Arizona and 103,000 retail customers in Mohave and Santa Cruz counties, generating an aggregate capacity of 3,408 megawatts, including 68 megawatts from solar and 250 megawatts from wind.
In summary, Creative Planning’s recent increase in its stake in Fortis signals growing institutional confidence in the utility sector, coinciding with positive stock performance and a favorable outlook from analysts.
