Clearway Energy (NYSE: CWEN) has received a downgrade from investment analysts at Zacks Research, shifting from a “strong-buy” rating to a “hold” rating. This change was announced in a report released on November 4, 2023. The decision reflects a broader trend among financial analysts who are reassessing the company’s market position.
Several other research firms have also published their evaluations of Clearway Energy. CIBC upgraded the stock from a “neutral” rating to a “sector outperform” rating, increasing their price target from $37.00 to $38.00. This adjustment was made on December 16, 2023. Additionally, Roth MKM raised its target price from $39.00 to $40.00 while maintaining a “buy” rating on November 24, 2023.
Other notable analyst actions include Evercore ISI, which initiated coverage on Clearway Energy with an “in-line” rating and a target price of $34.00 on October 6, 2023. The Royal Bank of Canada also began coverage, issuing an “outperform” rating with a price target of $36.00 on October 8, 2023. Weiss Ratings reaffirmed a “hold (c)” rating on January 21, 2024.
Currently, one analyst has assigned a “strong buy” rating, six have given a “buy” rating, and four have rated the stock as “hold.” According to MarketBeat data, Clearway Energy holds an average rating of “Moderate Buy” with an average price target of $37.71.
Quarterly Earnings and Financial Performance
On the financial front, Clearway Energy reported its quarterly earnings on November 4, 2023. The company achieved earnings per share (EPS) of $2.00, significantly exceeding analysts’ consensus estimate of $0.32 by $1.68. The firm noted a net margin of 20.07% and a return on equity of 4.96%. Revenue for the quarter reached $429 million, surpassing the expected $427.72 million, although it represented an 11.7% decrease compared to the same period last year. Analysts forecast that Clearway Energy will post an EPS of $0.83 for the current fiscal year.
Institutional Investors Adjust Holdings
Recent activity among institutional investors has also impacted Clearway Energy’s stock. Caitong International Asset Management Co. Ltd increased its stake in the company by 280.9% in the third quarter, acquiring an additional 705 shares to hold a total of 956 shares valued at approximately $27,000. National Bank of Canada FI boosted its position by 201.9% in the same quarter, owning 975 shares worth around $28,000 after adding 652 shares.
Mather Group LLC initiated a new position in Clearway Energy during the third quarter, valued at roughly $29,000. Geneos Wealth Management Inc. raised its holdings by 94.5% in the fourth quarter, now holding 1,235 shares worth $41,000 following an acquisition of 600 shares. Headlands Technologies LLC also acquired a new stake in the second quarter, estimated at about $43,000. Overall, institutional investors and hedge funds collectively own 84.53% of Clearway Energy’s stock.
Clearway Energy Group, founded in 2013 and rebranded from NRG Yield in 2018, operates within the clean and conventional power generation sector. The company’s diverse portfolio includes utility-scale wind and solar farms, biogas and natural gas-fired thermal facilities, as well as distributed generation projects such as rooftop solar and energy storage. Clearway’s operations are primarily supported by long-term power purchase agreements with creditworthy counterparts, which help ensure stable cash flows.
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