Investment analysts at Zacks Research have downgraded Clearway Energy (NYSE:CWEN) from a “strong-buy” rating to a “hold” rating, as detailed in a report released on November 4, 2023. This shift comes amid a broader examination of the company’s performance and market position.
Several research firms have issued their own assessments of Clearway Energy. On December 16, 2023, CIBC upgraded the company from a “neutral” rating to a “sector outperform” rating, raising the price target from $37.00 to $38.00. In contrast, on November 24, 2023, Roth MKM increased their target price from $39.00 to $40.00 while maintaining a “buy” rating on the stock.
Other notable actions include Evercore ISI, which initiated coverage on Clearway Energy with an “in-line” rating and a target price of $34.00, while Royal Bank of Canada issued an “outperform” rating accompanied by a price target of $36.00. Additionally, Weiss Ratings reaffirmed a “hold (c)” rating on January 21, 2024. Currently, one analyst has rated the stock as a Strong Buy, six have assigned a Buy rating, and four have given a Hold rating. According to data from MarketBeat, the average rating for Clearway Energy is “Moderate Buy,” with an average price target of $37.71.
Recent Financial Performance
Clearway Energy recently reported its quarterly earnings on November 4, 2023. The company announced earnings per share (EPS) of $2.00, significantly exceeding analysts’ consensus estimates of $0.32 by $1.68. The firm recorded a net margin of 20.07% and a return on equity of 4.96%. Revenue for the quarter reached $429.00 million, surpassing the consensus estimate of $427.72 million. However, revenue decreased by 11.7% compared to the same period last year, when the company earned $0.31 EPS. Analysts forecast that Clearway Energy will post an EPS of 0.83 for the current fiscal year.
Institutional Investors’ Activity
In the third quarter, several large institutional investors modified their holdings in Clearway Energy. Caitong International Asset Management Co. Ltd increased its stake by 280.9%, now owning 956 shares valued at approximately $27,000. Similarly, National Bank of Canada FI raised its position by 201.9%, acquiring 975 shares valued at $28,000 after purchasing an additional 652 shares.
Additionally, Mather Group LLC established a new position in Clearway Energy during the same quarter worth about $29,000. Geneos Wealth Management Inc. increased its holdings by 94.5% in the fourth quarter, owning 1,235 shares valued at $41,000 following an acquisition of 600 shares. Furthermore, Headlands Technologies LLC acquired a stake valued at approximately $43,000 in the second quarter. Overall, institutional investors and hedge funds own 84.53% of Clearway Energy’s stock.
About Clearway Energy
Clearway Energy Group (NYSE: CWEN), based in the United States, focuses on the ownership, operation, and development of both clean and conventional power generation assets. The company’s portfolio includes utility-scale wind and solar farms, biogas and natural gas-fired thermal facilities, along with distributed generation projects such as rooftop solar and energy storage solutions.
Clearway’s generation assets are largely supported by long-term power purchase agreements and service contracts with creditworthy counterparties, providing stable and predictable cash flows. Originally launched in 2013 as NRG Yield, the company rebranded to Clearway Energy in 2018, following a strategic sponsorship change. It has since grown into one of the largest independent renewable energy platforms in the United States.
Investors may want to keep an eye on Clearway Energy as it navigates its market challenges and responds to shifts in analyst ratings and institutional investment trends.
