ST. LOUIS – Chonda J. Nwamu, Ameren Corp 's Executive Vice President, General Counsel, and Secretary, recently sold 1,610 shares of the company's stock, according to a regulatory filing with the Securities and Exchange Commission. The transaction, dated August 28, 2024, involved shares of the utility company's common stock at an average price of $81.94, totaling approximately $131,923.
The sale was part of a series of transactions disclosed in the filing, which also detailed Nwamu's remaining holdings in the company. Following the sale, Nwamu still owns 44,432 shares of Ameren Corp (NYSE:AEE) stock. The filing included footnotes indicating that the amount includes shares acquired through reinvested dividends and dividend equivalents from restricted stock units under the issuer's 2022 Omnibus Incentive Compensation Plan.
The disclosure provides a snapshot of insider transactions and holdings, offering investors a glimpse into the actions of Ameren's executives. It should be noted that the shares owned following the transaction may also include share equivalents held in the unitized stock fund as part of the Ameren Corporation (NYSE:AEE) Savings Investment Plan.
Ameren Corp, based in St. Louis, Missouri, operates in the electric and other services combined industry. The company's shares are traded on the New York Stock Exchange under the ticker symbol AEE. As with all insider transactions, the filing offers a piece of the broader investment puzzle that shareholders and potential investors consider when looking at the health and direction of a company.
In other recent news, Ameren Corporation has made significant amendments to its bylaws, reflecting changes to shareholder proposal procedures and meeting protocols. In addition, the company has reported a positive second quarter, with earnings per share (EPS) increasing to $0.97 from $0.90 in the previous year, leading BMO Capital Markets to raise Ameren's price target to $87.00 from $84.00, while maintaining an Outperform rating on the stock. Ameren also declared a quarterly cash dividend for its common stock at 67 cents per share, set to be distributed later this year. The company anticipates a compound annual earnings growth rate of 6% to 8% from 2024 to 2028, forecasting an EPS range of $4.52 to $4.72 for the year. Ameren is experiencing customer growth with data center inquiries and has executed a construction agreement for a 250-megawatt data center. These are just a few of the recent developments for Ameren Corporation.
InvestingPro Insights
Ameren Corp (NYSE:AEE) has demonstrated a commitment to returning value to shareholders, as evidenced by its track record of raising its dividend for 10 consecutive years. This consistency is a strong signal for income-focused investors, particularly when considering the company’s long history of maintaining dividend payments for 27 consecutive years. Notably, Ameren's dividend yield stood at 3.26% as of the last recorded date, showcasing its appeal as an income-generating investment.
On the performance front, Ameren has seen a strong return over the last three months, with a price total return of 16.15%. This bullish trend is further supported by the stock trading near its 52-week high, at 97.74% of the peak price. The company's share price at the previous close was $82.28, which is closely aligned with the recent insider sale price of $81.94.
While the company’s P/E ratio is at 18.63, it is trading at a high valuation relative to near-term earnings growth, which could be a point of caution for value investors. Additionally, it's worth noting that four analysts have revised their earnings estimates downwards for the upcoming period. This could indicate potential headwinds or a conservative outlook on the company’s near-term financial performance.
For investors seeking more in-depth analysis, there are additional InvestingPro Tips available on the Ameren Corp profile on InvestingPro. These tips provide valuable insights into the company's financial health and future prospects, which can be crucial for making informed investment decisions.
To explore further details and obtain a comprehensive set of InvestingPro Tips, interested parties can visit Ameren Corp's InvestingPro profile at https://www.investing.com/pro/AEE.
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