Analysts Recommend “Hold” for Algonquin Power & Utilities Stock

Algonquin Power & Utilities Corp. (NYSE:AQN) has received a consensus recommendation of “Hold” from analysts currently covering the company, according to MarketBeat.com. Out of twelve analysts, one has issued a sell rating, six have maintained a hold rating, and five have assigned a buy rating. The average target price over the next year stands at $6.625 per share.

Recent reports from various research analysts provide insight into the shifting perspectives on Algonquin Power & Utilities. On March 9, TD Cowen lowered its target price from $6.50 to $6.00 while maintaining a “hold” rating. Conversely, Raymond James Financial upgraded its rating from “market perform” to “outperform,” increasing its price target from $6.50 to $7.25 on the same day.

In a separate report, Weiss Ratings downgraded the company from a “hold (c-)” to a “sell (d+)” rating on March 6. Additionally, Zacks Research reduced its rating from “strong buy” to “hold” in another assessment released on March 9.

Quarterly Earnings Performance

In its latest earnings announcement on March 6, Algonquin Power & Utilities reported earnings per share (EPS) of $0.06, slightly surpassing the consensus estimate of $0.05. The company generated revenues of $630.70 million, exceeding analyst expectations of $625.77 million. The firm achieved a net margin of 7.32% and a return on equity of 5.47%, marking a 7.8% increase in revenue compared to the same quarter last year.

For fiscal years 2026 and 2027, the company has provided guidance of $0.350-$0.370 EPS and $0.380-$0.420 EPS, respectively. Analysts project an EPS of $0.38 for the current fiscal year.

Dividend Announcement

Algonquin Power & Utilities has also declared a quarterly dividend of $0.065 per share, scheduled for payment on April 15. Shareholders of record as of March 31 will receive this dividend, which translates to an annualized dividend of $0.26 and a yield of 4.1%. The ex-dividend date is also March 31. The company’s payout ratio currently stands at 113.04%.

Institutional Investors’ Involvement

Recent activity from institutional investors indicates growing interest in Algonquin Power & Utilities. In the fourth quarter, EdgePoint Investment Group Inc. increased its holdings by 32.6%, now owning 81,727,385 shares valued at approximately $502.56 million after acquiring an additional 20,074,709 shares.

Other notable investors include Principal Financial Group Inc., which purchased a new stake valued at around $74.26 million, and Norges Bank, which acquired shares worth approximately $67.07 million. Additionally, Ariel Investments LLC increased its stake by 88.6% during the second quarter, while Goldman Sachs Group Inc. raised its position by 65.0% in the first quarter.

Currently, institutional investors and hedge funds own 62.28% of Algonquin Power & Utilities stock.

About Algonquin Power & Utilities

Based in Oakville, Ontario, Algonquin Power & Utilities Corp. is a diversified utility company established in 1988. The firm operates in two main segments: Regulated Utilities, which includes electric, natural gas, and water distribution, and Renewable Energy, comprising hydroelectric, solar, wind, and thermal generation facilities. The company’s renewable energy assets are strategically located across Canada and the United States, supporting its commitment to expanding clean energy capacity in regions with favorable regulatory environments.