HSBC Holdings PLC has reduced its stake in Advanced Energy Industries, Inc. (NASDAQ: AEIS) by a significant 32.4% during the second quarter of 2023. According to HoldingsChannel, the financial institution held 15,097 shares after divesting 7,223 shares in this period, valuing its remaining holdings at approximately $2 million.
In addition to HSBC’s move, several institutional investors have also adjusted their positions in Advanced Energy. Notably, Bessemer Group Inc. increased its investment by 98.3%, acquiring an additional 116 shares, bringing its total to 234 shares worth $31,000. UMB Bank N.A. raised its stake by 42.9%, now holding 313 shares valued at $41,000 after purchasing 94 shares. Meanwhile, Caitong International Asset Management Co. Ltd. entered the market with a new investment worth $31,000 in the first quarter.
Russell Investments Group Ltd. also boosted its holdings by 26.0% and now owns 446 shares valued at $43,000, while Huntington National Bank increased its position by 26.8% during the second quarter, owning 473 shares worth $63,000. Collectively, institutional investors control 99.67% of Advanced Energy’s stock.
Stock Performance and Financial Overview
On Friday, Advanced Energy Industries shares opened at $219.38. The company maintains a solid financial standing, with a current ratio of 4.10 and a quick ratio of 3.01. Its debt-to-equity ratio stands at 0.43, showcasing a balanced financial structure. Over the past twelve months, the stock has fluctuated between a low of $75.01 and a high of $232.05. The company boasts a market capitalization of $8.28 billion, with a price-to-earnings (P/E) ratio of 57.58 and a PEG ratio of 1.31.
In another significant development, Advanced Energy recently announced a quarterly dividend of $0.10 per share, which was disbursed on December 5, 2023, to shareholders on record as of November 24, 2023. This brings the annualized dividend to $0.40, reflecting a dividend yield of 0.2% and a payout ratio of 10.50%.
Analyst Ratings and Insider Activity
Market analysts have provided updated price targets for Advanced Energy Industries. Robert W. Baird set a target of $190.00, while Benchmark raised their estimate from $150.00 to $225.00 with a “buy” rating. Citigroup increased its target to $255.00, also recommending a “buy” rating. Wells Fargo’s target rose from $175.00 to $215.00, assigning an “equal weight” rating. Currently, the stock holds a consensus rating of “Moderate Buy” with an average price target of $212.00, according to data from MarketBeat.
In recent insider trading activities, Executive Vice President Paul R. Oldham sold 8,174 shares on November 19, 2023, at an average price of $203.11, totaling approximately $1,660,221.14. Following this transaction, he retained 24,792 shares valued at around $5,035,503.12, marking a 24.80% reduction in his holdings. Additionally, Director Tina Donikowski sold 2,257 shares on December 4, 2023, for about $474,714.81, which represents a 21.49% decrease in her ownership.
Advanced Energy Industries specializes in precision power conversion, measurement, and control solutions, serving clients both in the United States and globally. Its plasma power products enable advanced semiconductor and thin film processes, such as dry etch and deposition, supporting innovations in various technology sectors.
