TSE:AQN

Algonquin Power & Utilities Corp (AQN.TO)

7.88
+0.03 (0.38%)
as of Sep 1, 2026, 8:00:00 pm Market Open.
1395 watching
0
Investor Insights
star iconSep 1, 2026, 12:00 am

This summary was created by AI, based on 29 opinions in the last 12 months.

Algonquin Power & Utilities Corp (AQN) is currently undergoing a multi-year turnaround focused on becoming a more pure-play regulated utility after divesting its renewable energy assets. The company is predominantly operating in the US, which has prompted plans for redomiciling to attract more US investors and investors appear cautiously optimistic about its restructuring efforts. However, many experts express concerns about the high levels of debt and the modest earnings growth. While there are positive signs of management's improved execution and focus, there is still a prevailing sentiment of skepticism until the company can demonstrate consistent profitability. The stock is perceived as a potential turnaround candidate, but its history of dividend cuts and operational challenges keep some investors at bay.

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Consensus
Cautious
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Valuation
Undervalued
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HOLD

Many headwinds lately. Fortis and Hydro One make more sense, offering stability and dividends. AQN has been basing since December. Technically, this looks rough. If you own it, hold, but don't enter this.

BUY

Floating debt making business hard with rising interest rates.
Recent Kentucky Power acquisition makes future uncertain.
Would recommend buying.
Good long term hold.

DON'T BUY

They bought that Kentucky company at a time when they needed to repair their balance sheet. The stock has been punished already, but will take some time to correct. They are cutting their dividend. Wait a year or so to see where the company is at.

DON'T BUY

He owned it but sold at $16 to $17 since he didn't like the deals it was making. There are too many headwinds in the industry including rising costs to build new structures.

BUY

Continues to pursue Kentucky Power, which is the right move because utilities don't come up for sale very often. They can take that utility and repurpose it. When a utility comes off so badly, you have to look at it as a buying opportunity. Renewable part struggling, and management needs to do better on this. He doesn't have confidence in management. If the assets are good, management is temporary.

DON'T BUY

He sold it in November 2021 when they bought a Kentucky company; didn't like that ROI and many institutional investors still don't like that deal for its huge capital cost, but limited return. They recently announced a 40% dividend cut, and they must sell some assets (but AQN hasn't said what). This is dead money until management regains credibility.

DON'T BUY
Growth in the power business is slower so avoid the sector. It cut the dividend which is a warning sign.
WAIT
Market's concerned about debt. Asset sales have popped the share price off the bottom. Not his style to try to pick the absolute bottom, likes to see it to come up a bit on improving news. Don't step in just yet. Looks attractive. Looking for more stability in its business and debt.
HOLD
Huge hit last quarter. Cut dividend, so payout ratio 75% of 2023 earnings (good that asset base excludes assets being sold). Stopped DRIP, not issuing equity for 2 years, asset sales. Yield still around 6%. Trading at 12x, very cheap. 70% of operations are regulated, steady income. Sticking with it for now. Now it's all about execution. If Kentucky acquisition fails, could be positive for the stock.
DON'T BUY
Recently lifted short on the position, but does not believe in the prospects of company. Recent dividend cut not enough. Lots of debt on balance sheet makes financing very hard (rising interest rates). Waiting for stock price to fall before investing.
DON'T BUY
Has a lot of baggage. His time horizons are a lot longer. You could buy it on positive news, like a purchase in Kentucky was rebuffed, given AQn's debt levels. [Will have an investor update call on Thursday, likely cutting the dividend.] Wait and see on that call before deciding. Look at other names.
RISKY
After a big run, sideways through 2020-22, big correction. Trying to stabilize around $9. Major support level is around $9.13. Wait to see if a new uptrend takes hold. If you have really high conviction, you can add a small position. If it heads lower take it off, and if it goes higher add more.
DON'T BUY
Dividend safe? Difficult numbers, problems with some assets. Technically, dividend is safe from a cashflow perspective. It would make sense to cut the dividend now, since the stock is down so much, because the stock won't fall much more even if they cut it. Big issue is whether debt will be downgraded, as it makes interest payments much higher and they may not be able to buy assets. Yield is 11%.
WEAK BUY
1-3 year outlook He too was surprised with their earnings call. Restoring confidence will take time. They must restore debt levels, but the jump in interest rates surprised all in the market. Maybe AQN needs to sell some projects. Expect no growth for 2 years. Maybe they should stop issuing shares and they might stop their DRIP. He doesn't think they will cut their dividend. Probably AQN is pounded further by tax-loss selling. Suggests you sell puts at a lower strike in a taxable account.
DON'T BUY
There is a possibility it could be taken out. He has sold and would not buy it back now.
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