All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Based in St Louis, Ameren (AEE - Free Report) is in the Utilities sector, and so far this year, shares have seen a price change of 8.19%. The utility is currently shelling out a dividend of $0.75 per share, with a dividend yield of 2.78%. This compares to the Utility - Electric Power industry's yield of 3.11% and the S&P 500's yield of 1.33%.
Looking at dividend growth, the company's current annualized dividend of $3.00 is up 5.6% from last year. Over the last 5 years, Ameren has increased its dividend 5 times on a year-over-year basis for an average annual increase of 7.11%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Ameren's current payout ratio is 56%, meaning it paid out 56% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, AEE expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $5.40 per share, with earnings expected to increase 7.36% from the year ago period.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. However, not all companies offer a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, AEE is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Above: A map of the EASL project. ST. LOUIS and JUNO BEACH, Fla., /PRNewswire/ -- The Midcontinent Independent System Operator (MISO) has selected a consortium of Ameren Transmission Company of Illinois (ATXI), a subsidiary of Ameren Corporation (NYSE: AEE); GridLiance Heartland, LLC, a subsidiary of NextEra Energy Transmission, LLC; and Dairyland Power Cooperative to develop, build, operate and maintain a major transmission project in Iowa. ATXI and GridLiance will lead the development of this project and own it jointly with Dairyland once it is placed in service.
The East Adair – Minnesota/Iowa State Line – Arbor Hill – York Avenue (EASL) project is foundational to a new 765-kilovolt (kV) backbone that will deliver safe, reliable and affordable energy to Midwest communities.
MISO selected the consortium through a competitive process after determining that its proposal offered the best overall value, based on its design, execution capabilities, regulatory experience and other key factors.
The total MISO estimated cost for this competitive transmission project is approximately $1.23 billion. ATXI, GridLiance, and Dairyland will have ownership stakes in the project of 42.5%, 42.5%, and 15%, respectively.
"MISO's selection reflects our commitment to delivering value for customers," said Shawn Schukar, chairman and president of ATXI. "We focused on developing a proposal that is reliable, economical and able to be built on time. Now, we are excited to deliver this project and see it benefit Midwest communities for decades to come."
"This win reflects the collective strength of our transmission experience and cost-competitive approach," said Matt Valle, president of NextEra Energy Transmission, LLC. "We're proud to partner with Ameren and Dairyland to deliver critical infrastructure to affordably modernize the electric grid that powers Iowa's growing energy needs and economy."
"A strong transmission system is essential to delivering the reliable electricity our communities depend on today while preparing for the needs of tomorrow," said Brent Ridge, president and CEO of Dairyland Power Cooperative. "This project will strengthen the regional grid, improve resiliency and create greater flexibility to accommodate future energy resources and economic growth."
The EASL project includes the construction of one new 765-kV transmission line spanning approximately 187 miles, one 345/765-kV substation named East Adair, and two new 345-kV transmission lines spanning approximately 22 miles in total.
The 765-kV line will run north from the new East Adair Substation in southern Iowa to the Minnesota/Iowa state line. The first 345-kV transmission line will run south from East Adair and connect to Deadend East of York Avenue. The second 345-kV transmission line will run north from East Adair and connect to the existing Arbor Hill Substation, which is also in southern Iowa.
EASL is a competitive project in MISO's Long Range Transmission Planning Tranche 2.1 Portfolio, which was originally approved in December 2024. The 765-kV scope of the project has an expected in-service date of June 1, 2034, while the 345-kV scope has an expected in-service date of June 1, 2032. The project will undergo the regulatory review process and thorough stakeholder and community engagement.
ATXI, GridLiance, and Dairyland were also selected earlier this year, along with the Illinois Municipal Electric Agency, to deliver the Sub T – Iowa/Illinois State Line – Woodford County (STIW) and Woodford County – Illinois/Indiana State Line (WIIL) projects. Those earlier projects are also part of the Tranche 2.1 Portfolio.
About Ameren Corporation
St. Louis-based Ameren Corporation powers the quality of life for 2.5 million electric customers and more than 900,000 natural gas customers in a 64,000-square-mile area through its Ameren Missouri and Ameren Illinois rate-regulated utility subsidiaries. Ameren Illinois provides electric transmission and distribution services and natural gas distribution services. Ameren Missouri provides electric generation, transmission and distribution services, as well as natural gas distribution services. Ameren Transmission Company of Illinois develops, owns and operates rate-regulated regional electric transmission projects in the Midcontinent Independent System Operator, Inc. For more information, visit Ameren.com, or follow us at @AmerenCorp, Facebook.com/AmerenCorp, or LinkedIn.com/company/Ameren.
About NextEra Energy Transmission
NextEra Energy Transmission, LLC is North America's leading competitive transmission company. With more than 3,200 miles of transmission lines in operation and development in 19 states and Canada, the company is strengthening and modernizing the electric grid to meet the country's growing energy needs. NextEra Energy Transmission owns, develops, finances, constructs, operates and maintains transmission assets across the continent. The company operates through its regional subsidiaries to integrate diverse energy sources. NextEra Energy Transmission, LLC is a subsidiary of Juno Beach, Florida-based NextEra Energy, Inc. For more information, visit www.NextEraEnergyTransmission.com.
About Dairyland Power Cooperative
Founded in 1941, Dairyland provides the wholesale electrical requirements and other services for 24 Class A member distribution cooperatives, 2 Class B members and 27 municipal utilities in the Upper Midwest. In turn, these cooperatives and municipals meet the energy needs of over 800,000 people. Dairyland delivers electricity over 3,700 miles of transmission lines and 400 distribution substations located throughout the system's 44,500 square mile service area.
Krilogy Financial LLC decreased its position in Ameren Corporation (NYSE:AEE – Free Report) by 9.5% during the 3rd quarter, according to its most recent filing with the SEC. The institutional investor owned 70,439 shares of the utilities provider’s stock after selling 7,416 shares during the period. Krilogy Financial LLC’s holdings in Ameren were worth $7,272,000 as of its most recent filing with the SEC.
Other institutional investors have also recently made changes to their positions in the company. NorthCrest Asset Manangement LLC acquired a new stake in shares of Ameren in the third quarter valued at approximately $259,000. Wedmont Private Capital boosted its holdings in shares of Ameren by 17.8% during the 3rd quarter. Wedmont Private Capital now owns 3,215 shares of the utilities provider’s stock worth $327,000 after buying an additional 486 shares in the last quarter. Farther Finance Advisors LLC increased its holdings in shares of Ameren by 9.5% during the third quarter. Farther Finance Advisors LLC now owns 5,195 shares of the utilities provider’s stock valued at $516,000 after acquiring an additional 449 shares in the last quarter. Avidian Wealth Enterprises LLC lifted its stake in Ameren by 1.5% during the 3rd quarter. Avidian Wealth Enterprises LLC now owns 8,212 shares of the utilities provider’s stock valued at $816,000 after acquiring an additional 124 shares in the last quarter. Finally, Valeo Financial Advisors LLC raised its stake in shares of Ameren by 8.6% during the 3rd quarter. Valeo Financial Advisors LLC now owns 2,188 shares of the utilities provider’s stock worth $217,000 after purchasing an additional 173 shares during the period. Institutional investors and hedge funds own 79.09% of the company’s stock.
Ameren Price Performance Shares of NYSE AEE opened at $104.28 on Wednesday. Ameren Corporation has a 1 year low of $96.57 and a 1 year high of $118.32. The stock has a market capitalization of $28.87 billion, a P/E ratio of 19.26, a P/E/G ratio of 3.02 and a beta of 0.44. The company’s 50-day moving average is $104.74 and its 200 day moving average is $108.66. The company has a debt-to-equity ratio of 1.38, a current ratio of 0.53 and a quick ratio of 0.37.
Ameren (NYSE:AEE – Get Free Report) last released its earnings results on Thursday, July 30th. The utilities provider reported $1.13 EPS for the quarter, beating analysts’ consensus estimates of $1.08 by $0.05. Ameren had a return on equity of 10.95% and a net margin of 17.86%. The company had revenue of $2.09 billion during the quarter, compared to analysts’ expectations of $2.27 billion. During the same quarter last year, the business posted $1.01 EPS. The firm’s revenue for the quarter was down 5.8% compared to the same quarter last year. Ameren has set its FY 2026 guidance at 5.250-5.450 EPS. On average, sell-side analysts expect that Ameren Corporation will post 5.40 earnings per share for the current year. Ameren Dividend Announcement The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 31st. Stockholders of record on Tuesday, December 8th will be paid a $0.75 dividend. This represents a $3.00 annualized dividend and a dividend yield of 2.9%. The ex-dividend date is Tuesday, December 8th. Ameren’s dividend payout ratio is 52.82%.
Analyst Upgrades and Downgrades Several research firms have issued reports on AEE. KeyCorp increased their target price on Ameren from $116.00 to $122.00 and gave the stock an “overweight” rating in a research report on Tuesday. Scotiabank initiated coverage on Ameren in a research report on Tuesday, September 29th. They set a “sector perform” rating and a $104.00 price target for the company. Mizuho decreased their price target on shares of Ameren from $124.00 to $113.00 and set an “outperform” rating on the stock in a report on Wednesday, September 30th. JPMorgan Chase & Co. lifted their price target on shares of Ameren from $126.00 to $137.00 and gave the stock an “overweight” rating in a research note on Thursday, July 16th. Finally, Barclays lifted their target price on shares of Ameren from $116.00 to $117.00 and gave the stock an “equal weight” rating in a research report on Thursday, July 9th. Ten equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat.com, Ameren presently has an average rating of “Moderate Buy” and an average target price of $118.08.
Check Out Our Latest Research Report on AEE
Insider Transactions at Ameren In other news, SVP Theresa A. Shaw sold 325 shares of Ameren stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $108.93, for a total value of $35,402.25. Following the sale, the senior vice president directly owned 32,340 shares of the company’s stock, valued at approximately $3,522,796.20. The trade was a 0.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Rafael Flores sold 248 shares of the firm’s stock in a transaction on Friday, September 11th. The shares were sold at an average price of $105.53, for a total transaction of $26,171.44. Following the completion of the transaction, the director directly owned 13,888 shares of the company’s stock, valued at approximately $1,465,600.64. This trade represents a 1.75% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 7,073 shares of company stock valued at $769,814 over the last quarter. 0.29% of the stock is currently owned by company insiders.
Ameren Company Profile (Free Report)
Ameren Corporation is a regulated utility holding company that provides electric and natural gas services to customers in Illinois and Missouri. Through its operating companies, Ameren delivers energy to residential, commercial and industrial customers and operates the infrastructure required to generate, transmit and distribute electricity, as well as distribute natural gas.
Ameren Missouri is involved in electric generation, transmission and distribution and natural gas distribution across Missouri.
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Ameren is a holding company operating regulated electric and natural gas utilities in the states of Illinois and Missouri. Ameren has increased its dividend for 13 consecutive years. Its 10-year dividend growth rate of 5.5% is okay, but what's more interesting is the acceleration in dividend growth. Ameren has a fairly standard financial position. Its long-term debt/equity ratio is 1.3, while the interest coverage ratio is 3.
, /PRNewswire/ -- The board of directors of Ameren Corporation (NYSE: AEE) today declared a quarterly cash dividend on its common stock of 75 cents per share. This dividend is payable Dec. 31, 2026, to shareholders of record at the close of business on Dec. 8, 2026.
Separately, the board of directors of Union Electric Company, doing business as Ameren Missouri, declared regular quarterly cash dividends on all classes of Union Electric Company's preferred stock. These preferred stock dividends are payable Feb. 15, 2027, to shareholders of record at the close of business on Jan. 14, 2027.
In addition, the board of directors of Ameren Illinois Company, doing business as Ameren Illinois, declared regular quarterly cash dividends on all classes of Ameren Illinois Company's preferred stock. These preferred stock dividends are payable Feb. 1, 2027, to shareholders of record at the close of business on Jan. 8, 2027.
About Ameren Corporation
St. Louis-based Ameren Corporation powers the quality of life for 2.5 million electric customers and more than 900,000 natural gas customers in a 64,000-square-mile area through its Ameren Missouri and Ameren Illinois rate-regulated utility subsidiaries. Ameren Illinois provides electric transmission and distribution service and natural gas distribution service. Ameren Missouri provides electric generation, transmission and distribution services, as well as natural gas distribution service. Ameren Transmission Company of Illinois develops, owns and operates rate-regulated regional electric transmission projects in the Midcontinent Independent System Operator, Inc. For more information, visit Ameren.com, or follow us at @AmerenCorp, Facebook.com/AmerenCorp, or LinkedIn.com/company/Ameren.
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Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Based in St Louis, Ameren (AEE - Free Report) is in the Utilities sector, and so far this year, shares have seen a price change of 1.98%. Currently paying a dividend of $0.75 per share, the company has a dividend yield of 2.95%. In comparison, the Utility - Electric Power industry's yield is 3.24%, while the S&P 500's yield is 1.45%.
Looking at dividend growth, the company's current annualized dividend of $3.00 is up 5.6% from last year. Over the last 5 years, Ameren has increased its dividend 5 times on a year-over-year basis for an average annual increase of 7.11%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Ameren's current payout ratio is 56%, meaning it paid out 56% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for AEE for this fiscal year. The Zacks Consensus Estimate for 2026 is $5.40 per share, which represents a year-over-year growth rate of 7.36%.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, AEE is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
, /PRNewswire/ -- The board of directors of Ameren Corporation (NYSE: AEE) today declared a quarterly cash dividend on its common stock of 75 cents per share. This dividend is payable Dec. 31, 2026, to shareholders of record at the close of business on Dec. 8, 2026.
Separately, the board of directors of Union Electric Company, doing business as Ameren Missouri, declared regular quarterly cash dividends on all classes of Union Electric Company's preferred stock. These preferred stock dividends are payable Feb. 15, 2027, to shareholders of record at the close of business on Jan. 14, 2027.
In addition, the board of directors of Ameren Illinois Company, doing business as Ameren Illinois, declared regular quarterly cash dividends on all classes of Ameren Illinois Company's preferred stock. These preferred stock dividends are payable Feb. 1, 2027, to shareholders of record at the close of business on Jan. 8, 2027.
About Ameren Corporation
St. Louis-based Ameren Corporation powers the quality of life for 2.5 million electric customers and more than 900,000 natural gas customers in a 64,000-square-mile area through its Ameren Missouri and Ameren Illinois rate-regulated utility subsidiaries. Ameren Illinois provides electric transmission and distribution service and natural gas distribution service. Ameren Missouri provides electric generation, transmission and distribution services, as well as natural gas distribution service. Ameren Transmission Company of Illinois develops, owns and operates rate-regulated regional electric transmission projects in the Midcontinent Independent System Operator, Inc. For more information, visit Ameren.com, or follow us at @AmerenCorp, Facebook.com/AmerenCorp, or LinkedIn.com/company/Ameren.
Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Ameren (AEE - Free Report) , which belongs to the Zacks Utility - Electric Power industry.
This utility has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 7.02%.
For the most recent quarter, Ameren was expected to post earnings of $1.08 per share, but it reported $1.13 per share instead, representing a surprise of 4.63%. For the previous quarter, the consensus estimate was $1.17 per share, while it actually produced $1.28 per share, a surprise of 9.40%.
Price and EPS Surprise
For Ameren, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Ameren has an Earnings ESP of +1.10% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Fortis (NYSE:FTS – Get Free Report) and Ameren (NYSE:AEE – Get Free Report) are both large-cap utilities companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.
Volatility & Risk Fortis has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500. Comparatively, Ameren has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500.
Profitability This table compares Fortis and Ameren’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Fortis 14.17% 7.16% 2.34% Ameren 17.86% 10.95% 3.00% Analyst Ratings This is a breakdown of current ratings and price targets for Fortis and Ameren, as reported by MarketBeat.com. Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Fortis 0 5 3 0 2.38 Ameren 0 4 10 0 2.71 Fortis currently has a consensus target price of $65.00, indicating a potential upside of 22.81%. Ameren has a consensus target price of $118.08, indicating a potential upside of 16.21%. Given Fortis’ higher possible upside, research analysts plainly believe Fortis is more favorable than Ameren.
Valuation & Earnings This table compares Fortis and Ameren”s top-line revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Fortis $8.71 billion 3.12 $1.29 billion $2.47 21.43 Ameren $8.80 billion 3.20 $1.46 billion $5.68 17.89 Ameren has higher revenue and earnings than Fortis. Ameren is trading at a lower price-to-earnings ratio than Fortis, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership 57.8% of Fortis shares are owned by institutional investors. Comparatively, 79.1% of Ameren shares are owned by institutional investors. 0.3% of Ameren shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Dividends Fortis pays an annual dividend of $1.82 per share and has a dividend yield of 3.4%. Ameren pays an annual dividend of $3.00 per share and has a dividend yield of 3.0%. Fortis pays out 73.7% of its earnings in the form of a dividend. Ameren pays out 52.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Fortis has raised its dividend for 5 consecutive years and Ameren has raised its dividend for 12 consecutive years.
Summary Ameren beats Fortis on 14 of the 17 factors compared between the two stocks.
About Fortis (Get Free Report)
Fortis Inc. operates as an electric and gas utility company in Canada, the United States, and the Caribbean countries. It generates, transmits, and distributes electricity to approximately 447,000 retail customers in southeastern Arizona; and 103,000 retail customers in Arizona's Mohave and Santa Cruz counties with an aggregate capacity of 3,408 megawatts (MW), including 68 MW of solar capacity and 250 MV of wind capacity. The company also sells wholesale electricity to other entities in the western United States; owns gas-fired and hydroelectric generating capacity totaling 65 MW; and distributes natural gas to approximately 1,087,000 residential, commercial, and industrial customers in British Columbia, Canada. In addition, it owns and operates the electricity distribution system that serves approximately 592,000 customers in southern and central Alberta; owns four hydroelectric generating facilities with a combined capacity of 225 MW; and provides operation, maintenance, and management services to five hydroelectric generating facilities. Further, the company distributes electricity in the island portion of Newfoundland and Labrador with an installed generating capacity of 145 MW; and on Prince Edward Island with a generating capacity of 90 MW. Additionally, it provides integrated electric utility service to approximately 69,000 customers in Ontario; approximately 275,000 customers in Newfoundland and Labrador; approximately 34,000 customers on Grand Cayman, Cayman Islands; and approximately 17,000 customers on certain islands in Turks and Caicos. It also holds long-term contracted generation assets in Belize consisting of 3 hydroelectric generating facilities with a combined capacity of 51 MW; and the Aitken Creek natural gas storage facility. It also owns and operates approximately 90,500 circuit Kilometers (km) of distribution lines; and approximately 51,600 km of natural gas pipelines. Fortis Inc. was founded in 1885 and is headquartered in St. John's, Canada.
About Ameren (Get Free Report)
Ameren Corporation, together with its subsidiaries, operates as a public utility holding company in the United States. The company operates through four segments: Ameren Missouri, Ameren Illinois Electric Distribution, Ameren Illinois Natural Gas, and Ameren Transmission. It engages in the rate-regulated electric generation, transmission, and distribution activities; and rate-regulated natural gas distribution business. In addition, the company generates electricity through coal, nuclear, and natural gas, as well as renewable sources, such as hydroelectric, wind, methane gas, and solar. It serves residential, commercial, and industrial customers. The company was founded in 1881 and is headquartered in Saint Louis, Missouri.
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Investors in Ameren Corporation (AEE - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Dec 18, 2026 $60 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for Ameren shares, but what is the fundamental picture for the company? Currently, Ameren is a Zacks Rank #3 (Hold) in the Utility - Electric Power industry that ranks in the Top 45% of our Zacks Industry Rank. Over the last 30 days, the Zacks Consensus Estimate for the current quarter has moved from $2.25 per share to $2.27 in that period.
Given the way analysts feel about Ameren right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Ameren Missouri updates 20-year energy roadmap to maintain and develop cost-effective energy resources to keep grid reliable for customersPR NewswireST. LOUIS,
Key Takeaways: Ameren Missouri's Integrated Resource Plan outlines the long-term roadmap for meeting customer needs through disciplined scenario planning and investments to cost-effectively keep the lights on for customers. The plan optimizes a mix of natural gas, solar, energy storage, fuel cells, wind, nuclear and other technologies to support reliability and stabilize costs under a range of future conditions.
Investors with an interest in Utility - Electric Power stocks have likely encountered both FirstEnergy (FE - Free Report) and Ameren (AEE - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, FirstEnergy has a Zacks Rank of #2 (Buy), while Ameren has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that FE is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
FE currently has a forward P/E ratio of 15.78, while AEE has a forward P/E of 18.37. We also note that FE has a PEG ratio of 2.50. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AEE currently has a PEG ratio of 2.90.
Another notable valuation metric for FE is its P/B ratio of 1.73. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, AEE has a P/B of 1.99.
These are just a few of the metrics contributing to FE's Value grade of B and AEE's Value grade of C.
FE is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that FE is likely the superior value option right now.
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Headquartered in St Louis, Ameren (AEE - Free Report) is a Utilities stock that has seen a price change of 1.8% so far this year. The utility is paying out a dividend of $0.75 per share at the moment, with a dividend yield of 2.95% compared to the Utility - Electric Power industry's yield of 3.24% and the S&P 500's yield of 1.4%.
Looking at dividend growth, the company's current annualized dividend of $3.00 is up 5.6% from last year. Over the last 5 years, Ameren has increased its dividend 5 times on a year-over-year basis for an average annual increase of 7.11%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Ameren's current payout ratio is 56%, meaning it paid out 56% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, AEE expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $5.40 per share, with earnings expected to increase 7.36% from the year ago period.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. But, not every company offers a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, AEE is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Updated analysis examines economic impact and the role of infrastructure improvements and economic development in supporting regional growth Key Takeaways: According to a new study, Ameren's economic activity supported approximately 63,000 jobs and generated $25.9 billion in economic output across Missouri and Illinois in 2025. Ameren spent $2.5 billion with in-state vendors and generated approximately $1 billion in state and local tax payments.
Bank of America Corp DE acquired a new stake in Ameren Corporation (NYSE:AEE – Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor acquired 2,175,165 shares of the utilities provider’s stock, valued at approximately $245,881,000. Bank of America Corp DE owned about 0.79% of Ameren at the end of the most recent quarter.
Several other institutional investors and hedge funds have also bought and sold shares of the company. BlackRock Inc. purchased a new position in shares of Ameren in the second quarter valued at $2,918,526,000. T. Rowe Price Investment Management Inc. boosted its stake in Ameren by 2.3% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 15,885,476 shares of the utilities provider’s stock worth $1,586,324,000 after purchasing an additional 362,052 shares during the period. Janus Henderson Group PLC boosted its stake in Ameren by 11.5% in the 1st quarter. Janus Henderson Group PLC now owns 5,377,156 shares of the utilities provider’s stock worth $591,056,000 after purchasing an additional 553,164 shares during the period. Jupiter Topco LLC purchased a new position in Ameren during the 2nd quarter valued at about $578,254,000. Finally, Bessemer Group Inc. grew its holdings in Ameren by 0.7% during the 1st quarter. Bessemer Group Inc. now owns 2,758,605 shares of the utilities provider’s stock valued at $303,227,000 after buying an additional 18,526 shares in the last quarter. 79.09% of the stock is owned by institutional investors.
Ameren Stock Performance NYSE:AEE opened at $103.08 on Thursday. The company has a debt-to-equity ratio of 1.38, a quick ratio of 0.37 and a current ratio of 0.53. Ameren Corporation has a fifty-two week low of $96.57 and a fifty-two week high of $118.32. The firm has a market cap of $28.54 billion, a PE ratio of 18.15, a price-to-earnings-growth ratio of 3.01 and a beta of 0.46. The business has a 50 day moving average price of $108.71 and a 200-day moving average price of $109.94.
Ameren (NYSE:AEE – Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The utilities provider reported $1.13 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.08 by $0.05. Ameren had a return on equity of 10.95% and a net margin of 17.86%.The company had revenue of $2.09 billion for the quarter, compared to the consensus estimate of $2.27 billion. During the same quarter in the previous year, the business earned $1.01 EPS. Ameren’s revenue was down 5.8% compared to the same quarter last year. Ameren has set its FY 2026 guidance at 5.250-5.450 EPS. Equities research analysts predict that Ameren Corporation will post 5.4 earnings per share for the current year. Ameren Announces Dividend The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 8th will be paid a $0.75 dividend. The ex-dividend date is Tuesday, September 8th. This represents a $3.00 annualized dividend and a dividend yield of 2.9%. Ameren’s payout ratio is currently 52.82%.
Analyst Upgrades and Downgrades A number of equities research analysts have recently issued reports on the stock. Weiss Ratings reissued a “buy (b)” rating on shares of Ameren in a report on Friday, August 7th. Mizuho boosted their price objective on shares of Ameren from $122.00 to $124.00 and gave the company an “outperform” rating in a research note on Monday, August 3rd. BMO Capital Markets decreased their target price on shares of Ameren from $121.00 to $119.00 and set an “outperform” rating on the stock in a report on Wednesday, July 22nd. Barclays increased their target price on shares of Ameren from $116.00 to $117.00 and gave the stock an “equal weight” rating in a research note on Thursday, July 9th. Finally, JPMorgan Chase & Co. raised their price target on shares of Ameren from $126.00 to $137.00 and gave the company an “overweight” rating in a report on Thursday, July 16th. Ten equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $121.42.
Read Our Latest Stock Report on AEE
Insider Activity In other news, SVP Theresa Shaw sold 325 shares of the firm’s stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $108.93, for a total transaction of $35,402.25. Following the sale, the senior vice president owned 32,340 shares of the company’s stock, valued at $3,522,796.20. This trade represents a 0.99% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michael Moehn sold 6,500 shares of the firm’s stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $108.96, for a total transaction of $708,240.00. Following the completion of the sale, the insider owned 199,689 shares in the company, valued at $21,758,113.44. This represents a 3.15% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 7,073 shares of company stock valued at $769,814 over the last ninety days. 0.29% of the stock is currently owned by corporate insiders.
Ameren Company Profile (Free Report)
Ameren Corporation (NYSE:AEE) is a regulated electric and natural gas utility holding company headquartered in St. Louis, Missouri. Through its operating companies, Ameren provides energy generation, transmission, distribution and related services to customers in Missouri and Illinois.
Ameren Missouri operates an integrated electric utility serving communities across Missouri and also provides natural gas distribution services in parts of the state. Ameren Illinois operates electric and natural gas distribution businesses serving customers throughout much of Illinois.
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Ameren (AEE - Free Report) has been on a downward spiral lately with significant selling pressure. After declining 6.1% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.
We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.
RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.
Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.
So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefiting from the inevitable rebound.
However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.
Here's Why AEE Could Experience a TurnaroundThe heavy selling of AEE shares appears to be in the process of exhausting itself, as indicated by its RSI reading of 27.74. So, the trend for the stock could reverse soon for reaching the old equilibrium of supply and demand.
The RSI value is not the only factor that indicates a potential turnaround for the stock in the near term. On the fundamental side, there has been strong agreement among the sell-side analysts covering the stock in raising earnings estimates for the current year. Over the last 30 days, the consensus EPS estimate for AEE has increased 0.2%. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.
Moreover, AEE currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Engineers Gate Manager LP trimmed its position in Ameren Corporation (NYSE:AEE – Free Report) by 42.6% during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 26,743 shares of the utilities provider’s stock after selling 19,887 shares during the quarter. Engineers Gate Manager LP’s holdings in Ameren were worth $3,023,000 at the end of the most recent quarter.
A number of other large investors also recently modified their holdings of the company. Droms Strauss Advisors Inc. MO ADV increased its holdings in Ameren by 2.2% during the 1st quarter. Droms Strauss Advisors Inc. MO ADV now owns 4,162 shares of the utilities provider’s stock worth $457,000 after acquiring an additional 90 shares during the period. Fortitude Advisory Group L.L.C. grew its position in shares of Ameren by 4.3% during the 1st quarter. Fortitude Advisory Group L.L.C. now owns 2,269 shares of the utilities provider’s stock valued at $249,000 after purchasing an additional 93 shares in the last quarter. Parallel Advisors LLC increased its holdings in shares of Ameren by 1.6% in the first quarter. Parallel Advisors LLC now owns 5,746 shares of the utilities provider’s stock worth $632,000 after purchasing an additional 93 shares during the period. Cidel Asset Management Inc. increased its holdings in shares of Ameren by 5.1% in the second quarter. Cidel Asset Management Inc. now owns 1,990 shares of the utilities provider’s stock worth $225,000 after purchasing an additional 96 shares during the period. Finally, GHP Investment Advisors Inc. raised its position in shares of Ameren by 19.4% in the first quarter. GHP Investment Advisors Inc. now owns 602 shares of the utilities provider’s stock worth $66,000 after buying an additional 98 shares in the last quarter. 79.09% of the stock is currently owned by institutional investors.
Wall Street Analysts Forecast Growth AEE has been the subject of several research analyst reports. Barclays lifted their price objective on Ameren from $116.00 to $117.00 and gave the company an “equal weight” rating in a research note on Thursday, July 9th. KeyCorp upgraded Ameren from a “sector weight” rating to an “overweight” rating and set a $122.00 target price on the stock in a research note on Thursday, July 23rd. Truist Financial lowered their price target on Ameren from $124.00 to $120.00 and set a “buy” rating on the stock in a report on Monday, August 17th. Wall Street Zen downgraded Ameren from a “hold” rating to a “sell” rating in a research report on Saturday, August 8th. Finally, Mizuho boosted their price objective on Ameren from $122.00 to $124.00 and gave the stock an “outperform” rating in a report on Monday, August 3rd. Ten research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $121.42.
Check Out Our Latest Research Report on AEE Ameren Price Performance AEE opened at $104.99 on Monday. The stock has a 50-day moving average price of $109.33 and a 200-day moving average price of $110.11. Ameren Corporation has a 12-month low of $96.57 and a 12-month high of $118.32. The company has a current ratio of 0.53, a quick ratio of 0.37 and a debt-to-equity ratio of 1.38. The stock has a market capitalization of $29.06 billion, a P/E ratio of 18.48, a PEG ratio of 3.07 and a beta of 0.46.
Ameren (NYSE:AEE – Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The utilities provider reported $1.13 earnings per share for the quarter, beating analysts’ consensus estimates of $1.08 by $0.05. The company had revenue of $2.09 billion for the quarter, compared to analysts’ expectations of $2.27 billion. Ameren had a return on equity of 10.95% and a net margin of 17.86%.Ameren’s revenue for the quarter was down 5.8% compared to the same quarter last year. During the same period last year, the firm posted $1.01 EPS. Ameren has set its FY 2026 guidance at 5.250-5.450 EPS. Equities analysts predict that Ameren Corporation will post 5.4 earnings per share for the current fiscal year.
Ameren Announces Dividend The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 8th will be paid a dividend of $0.75 per share. The ex-dividend date of this dividend is Tuesday, September 8th. This represents a $3.00 annualized dividend and a dividend yield of 2.9%. Ameren’s dividend payout ratio (DPR) is 52.82%.
Insider Buying and Selling In related news, SVP Theresa A. Shaw sold 325 shares of the stock in a transaction on Friday, August 14th. The shares were sold at an average price of $108.93, for a total transaction of $35,402.25. Following the transaction, the senior vice president owned 32,340 shares of the company’s stock, valued at approximately $3,522,796.20. This trade represents a 0.99% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michael L. Moehn sold 6,500 shares of Ameren stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $108.96, for a total transaction of $708,240.00. Following the completion of the transaction, the insider owned 199,689 shares in the company, valued at approximately $21,758,113.44. The trade was a 3.15% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.29% of the company’s stock.
About Ameren (Free Report)
Ameren Corporation (NYSE:AEE) is a regulated electric and natural gas utility holding company headquartered in St. Louis, Missouri. Through its operating companies, Ameren provides energy generation, transmission, distribution and related services to customers in Missouri and Illinois.
Ameren Missouri operates an integrated electric utility serving communities across Missouri and also provides natural gas distribution services in parts of the state. Ameren Illinois operates electric and natural gas distribution businesses serving customers throughout much of Illinois.
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HighTower Advisors LLC reduced its stake in Ameren Corporation (NYSE:AEE – Free Report) by 13.2% in the 2nd quarter, according to the company in its most recent filing with the SEC. The fund owned 37,047 shares of the utilities provider’s stock after selling 5,641 shares during the quarter. HighTower Advisors LLC’s holdings in Ameren were worth $4,188,000 at the end of the most recent reporting period.
Other large investors have also recently added to or reduced their stakes in the company. Droms Strauss Advisors Inc. MO ADV lifted its stake in shares of Ameren by 2.2% in the first quarter. Droms Strauss Advisors Inc. MO ADV now owns 4,162 shares of the utilities provider’s stock worth $457,000 after buying an additional 90 shares during the last quarter. Fortitude Advisory Group L.L.C. grew its stake in Ameren by 4.3% in the 1st quarter. Fortitude Advisory Group L.L.C. now owns 2,269 shares of the utilities provider’s stock valued at $249,000 after buying an additional 93 shares during the last quarter. Parallel Advisors LLC raised its holdings in Ameren by 1.6% in the 1st quarter. Parallel Advisors LLC now owns 5,746 shares of the utilities provider’s stock worth $632,000 after acquiring an additional 93 shares during the period. GHP Investment Advisors Inc. raised its holdings in Ameren by 19.4% in the 1st quarter. GHP Investment Advisors Inc. now owns 602 shares of the utilities provider’s stock worth $66,000 after acquiring an additional 98 shares during the period. Finally, Annis Gardner Whiting Capital Advisors LLC lifted its position in Ameren by 45.4% during the 4th quarter. Annis Gardner Whiting Capital Advisors LLC now owns 349 shares of the utilities provider’s stock worth $35,000 after acquiring an additional 109 shares during the last quarter. Institutional investors own 79.09% of the company’s stock.
Insiders Place Their Bets In related news, insider Michael L. Moehn sold 6,500 shares of the stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $108.96, for a total value of $708,240.00. Following the completion of the transaction, the insider owned 199,689 shares of the company’s stock, valued at $21,758,113.44. This represents a 3.15% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Theresa A. Shaw sold 325 shares of the company’s stock in a transaction on Friday, August 14th. The shares were sold at an average price of $108.93, for a total value of $35,402.25. Following the completion of the sale, the senior vice president owned 32,340 shares in the company, valued at $3,522,796.20. This trade represents a 0.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.29% of the company’s stock.
Ameren Stock Up 0.0% Shares of AEE opened at $104.99 on Friday. The company has a debt-to-equity ratio of 1.38, a quick ratio of 0.37 and a current ratio of 0.53. The company has a 50-day simple moving average of $109.33 and a 200-day simple moving average of $110.12. Ameren Corporation has a 52 week low of $96.57 and a 52 week high of $118.32. The firm has a market capitalization of $29.06 billion, a P/E ratio of 18.48, a P/E/G ratio of 3.07 and a beta of 0.46. Ameren (NYSE:AEE – Get Free Report) last released its earnings results on Thursday, July 30th. The utilities provider reported $1.13 earnings per share for the quarter, topping analysts’ consensus estimates of $1.08 by $0.05. Ameren had a return on equity of 10.95% and a net margin of 17.86%.The business had revenue of $2.09 billion for the quarter, compared to the consensus estimate of $2.27 billion. During the same period last year, the business earned $1.01 earnings per share. The firm’s revenue for the quarter was down 5.8% compared to the same quarter last year. Ameren has set its FY 2026 guidance at 5.250-5.450 EPS. On average, equities research analysts expect that Ameren Corporation will post 5.4 earnings per share for the current year.
Ameren Announces Dividend The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 8th will be given a dividend of $0.75 per share. The ex-dividend date is Tuesday, September 8th. This represents a $3.00 dividend on an annualized basis and a dividend yield of 2.9%. Ameren’s payout ratio is currently 52.82%.
Analysts Set New Price Targets A number of equities research analysts have issued reports on AEE shares. Mizuho upped their price target on shares of Ameren from $122.00 to $124.00 and gave the company an “outperform” rating in a report on Monday, August 3rd. BTIG Research set a $126.00 price objective on Ameren in a research note on Thursday, July 23rd. Truist Financial cut their price objective on Ameren from $124.00 to $120.00 and set a “buy” rating for the company in a research report on Monday, August 17th. Morgan Stanley decreased their target price on Ameren from $118.00 to $114.00 and set an “equal weight” rating for the company in a research note on Friday, August 21st. Finally, KeyCorp raised Ameren from a “sector weight” rating to an “overweight” rating and set a $122.00 target price on the stock in a report on Thursday, July 23rd. Ten investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $121.42.
Get Our Latest Analysis on AEE
Ameren Profile (Free Report)
Ameren Corporation (NYSE:AEE) is a regulated electric and natural gas utility holding company headquartered in St. Louis, Missouri. Through its operating companies, Ameren provides energy generation, transmission, distribution and related services to customers in Missouri and Illinois.
Ameren Missouri operates an integrated electric utility serving communities across Missouri and also provides natural gas distribution services in parts of the state. Ameren Illinois operates electric and natural gas distribution businesses serving customers throughout much of Illinois.
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Arizona State Retirement System increased its holdings in Ameren Corporation (NYSE:AEE – Free Report) by 7.9% in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 79,320 shares of the utilities provider’s stock after buying an additional 5,781 shares during the period. Arizona State Retirement System’s holdings in Ameren were worth $8,966,000 as of its most recent filing with the Securities and Exchange Commission.
Other institutional investors have also made changes to their positions in the company. Keating Financial Advisory Services Inc. acquired a new position in Ameren in the 2nd quarter valued at $27,000. Caitong International Asset Management Co. Ltd increased its position in shares of Ameren by 285.5% in the third quarter. Caitong International Asset Management Co. Ltd now owns 266 shares of the utilities provider’s stock worth $28,000 after purchasing an additional 197 shares during the period. Garton & Associates Financial Advisors LLC bought a new position in shares of Ameren in the fourth quarter worth $29,000. Osterweis Capital Management Inc. raised its stake in Ameren by 6,040.0% in the second quarter. Osterweis Capital Management Inc. now owns 307 shares of the utilities provider’s stock valued at $29,000 after purchasing an additional 302 shares in the last quarter. Finally, Continuum Advisory LLC acquired a new position in Ameren in the second quarter valued at about $30,000. 79.09% of the stock is currently owned by institutional investors.
Insider Buying and Selling at Ameren In other news, SVP Theresa Shaw sold 325 shares of the stock in a transaction on Friday, August 14th. The stock was sold at an average price of $108.93, for a total value of $35,402.25. Following the completion of the transaction, the senior vice president directly owned 32,340 shares in the company, valued at approximately $3,522,796.20. This represents a 0.99% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michael Moehn sold 6,500 shares of the firm’s stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $108.96, for a total value of $708,240.00. Following the sale, the insider directly owned 199,689 shares in the company, valued at approximately $21,758,113.44. This trade represents a 3.15% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.29% of the stock is currently owned by corporate insiders.
Wall Street Analysts Forecast Growth Several equities research analysts recently weighed in on the stock. BTIG Research set a $126.00 price objective on shares of Ameren in a research report on Thursday, July 23rd. Wall Street Zen cut shares of Ameren from a “hold” rating to a “sell” rating in a research report on Saturday, August 8th. Barclays upped their price target on shares of Ameren from $116.00 to $117.00 and gave the stock an “equal weight” rating in a report on Thursday, July 9th. JPMorgan Chase & Co. increased their price target on shares of Ameren from $126.00 to $137.00 and gave the stock an “overweight” rating in a research report on Thursday, July 16th. Finally, BMO Capital Markets decreased their price objective on shares of Ameren from $121.00 to $119.00 and set an “outperform” rating on the stock in a research note on Wednesday, July 22nd. Ten equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $121.42. Read Our Latest Report on AEE
Ameren Price Performance Shares of AEE stock opened at $106.23 on Thursday. The business has a fifty day simple moving average of $109.72 and a 200 day simple moving average of $110.19. The company has a market cap of $29.41 billion, a P/E ratio of 18.70, a P/E/G ratio of 3.12 and a beta of 0.46. The company has a quick ratio of 0.37, a current ratio of 0.53 and a debt-to-equity ratio of 1.38. Ameren Corporation has a twelve month low of $96.57 and a twelve month high of $118.32.
Ameren (NYSE:AEE – Get Free Report) last released its earnings results on Thursday, July 30th. The utilities provider reported $1.13 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.08 by $0.05. The firm had revenue of $2.09 billion for the quarter, compared to analysts’ expectations of $2.27 billion. Ameren had a return on equity of 10.95% and a net margin of 17.86%.The business’s revenue for the quarter was down 5.8% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.01 earnings per share. Ameren has set its FY 2026 guidance at 5.250-5.450 EPS. On average, sell-side analysts forecast that Ameren Corporation will post 5.4 EPS for the current fiscal year.
Ameren Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 8th will be issued a dividend of $0.75 per share. The ex-dividend date is Tuesday, September 8th. This represents a $3.00 annualized dividend and a dividend yield of 2.8%. Ameren’s dividend payout ratio is 52.82%.
Ameren Profile (Free Report)
Ameren Corporation (NYSE:AEE) is a regulated electric and natural gas utility holding company headquartered in St. Louis, Missouri. Through its operating companies, Ameren provides energy generation, transmission, distribution and related services to customers in Missouri and Illinois.
Ameren Missouri operates an integrated electric utility serving communities across Missouri and also provides natural gas distribution services in parts of the state. Ameren Illinois operates electric and natural gas distribution businesses serving customers throughout much of Illinois.
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, /PRNewswire/ -- Ameren Corporation (NYSE: AEE) announced today the pricing of a public offering of $900 million aggregate principal amount of junior subordinated notes due 2057 at 100.000% of their principal amount. The transaction is expected to close on September 18, 2026, subject to the satisfaction of customary closing conditions.
The junior subordinated notes will bear interest (i) from and including the date of original issuance to but excluding March 15, 2032, at an annual rate of 6.450% and (ii) from and including March 15, 2032, during each interest reset period at an annual rate equal to the Five-Year Treasury Rate (calculated as described in the prospectus supplement and prospectus relating to the junior subordinated notes) plus 1.868%; provided, that the interest rate during any interest reset period will not reset below 6.450% (which equals the initial interest rate on the junior subordinated notes).
Ameren intends to use the net proceeds of the offering for general corporate purposes, including to repay its short-term debt.
Barclays Capital Inc., BofA Securities, Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., Truist Securities, Inc., PNC Capital Markets LLC and Scotia Capital (USA) Inc. are acting as joint book-running managers for the offering.
The offering is being made only by means of a prospectus and related prospectus supplement. A prospectus supplement related to the offering will be filed with the Securities and Exchange Commission. Copies of the prospectus and related prospectus supplement for the offering, when available, may be obtained via the Securities and Exchange Commission's website at www.sec.gov or by contacting J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by email at [email protected] and [email protected]. This press release does not constitute an offer to sell or a solicitation of an offer to buy the junior subordinated notes and shall not constitute an offer, solicitation or sale in any jurisdiction in which, or to any person to whom, such an offer, solicitation or sale is unlawful.
About Ameren
St. Louis-based Ameren Corporation powers the quality of life for 2.5 million electric customers and more than 900,000 natural gas customers in a 64,000-square-mile area through its Ameren Missouri and Ameren Illinois rate-regulated utility subsidiaries. Ameren Illinois provides electric transmission and distribution service and natural gas distribution service. Ameren Missouri provides electric generation, transmission and distribution service, as well as natural gas distribution service. Ameren Transmission Company of Illinois develops, owns and operates rate-regulated regional electric transmission projects in the Midcontinent Independent System Operator, Inc.
Ameren Announces Pricing of Junior Subordinated Notes due 2057 PR Newswire
ST. LOUIS, Sept. 8, 2026
, /PRNewswire/ -- Ameren Corporation (NYSE: AEE) announced today the pricing of a public offering of $900 million aggregate principal amount of junior subordinated notes due 2057 at 100.000% of their principal amount. The transaction is expected to close on September 18, 2026, subject to the satisfaction of customary closing conditions.
The junior subordinated notes will bear interest (i) from and including the date of original issuance to but excluding March 15, 2032, at an annual rate of 6.450% and (ii) from and including March 15, 2032, during each interest reset period at an annual rate equal to the Five-Year Treasury Rate (calculated as described in the prospectus supplement and prospectus relating to the junior subordinated notes) plus 1.868%; provided, that the interest rate during any interest reset period will not reset below 6.450% (which equals the initial interest rate on the junior subordinated notes).
Ameren intends to use the net proceeds of the offering for general corporate purposes, including to repay its short-term debt.
Barclays Capital Inc., BofA Securities, Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., Truist Securities, Inc., PNC Capital Markets LLC and Scotia Capital (USA) Inc. are acting as joint book-running managers for the offering.
The offering is being made only by means of a prospectus and related prospectus supplement. A prospectus supplement related to the offering will be filed with the Securities and Exchange Commission. Copies of the prospectus and related prospectus supplement for the offering, when available, may be obtained via the Securities and Exchange Commission's website at www.sec.gov or by contacting J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by email at [email protected] and [email protected]. This press release does not constitute an offer to sell or a solicitation of an offer to buy the junior subordinated notes and shall not constitute an offer, solicitation or sale in any jurisdiction in which, or to any person to whom, such an offer, solicitation or sale is unlawful.
About Ameren
St. Louis-based Ameren Corporation powers the quality of life for 2.5 million electric customers and more than 900,000 natural gas customers in a 64,000-square-mile area through its Ameren Missouri and Ameren Illinois rate-regulated utility subsidiaries. Ameren Illinois provides electric transmission and distribution service and natural gas distribution service. Ameren Missouri provides electric generation, transmission and distribution service, as well as natural gas distribution service. Ameren Transmission Company of Illinois develops, owns and operates rate-regulated regional electric transmission projects in the Midcontinent Independent System Operator, Inc.
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The sale was valued at approximately $107,000 value. The disposition reduced the total equity stake by 3%, including a 4% reduction in the insider's direct holdings.
Canada Pension Plan Investment Board acquired a new position in Ameren Corporation (NYSE:AEE – Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 9,102 shares of the utilities provider’s stock, valued at approximately $1,029,000.
Other large investors also recently made changes to their positions in the company. Keating Financial Advisory Services Inc. acquired a new position in shares of Ameren during the 2nd quarter valued at $27,000. Caitong International Asset Management Co. Ltd increased its holdings in Ameren by 285.5% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 266 shares of the utilities provider’s stock valued at $28,000 after purchasing an additional 197 shares in the last quarter. Garton & Associates Financial Advisors LLC purchased a new position in Ameren in the fourth quarter valued at about $29,000. Osterweis Capital Management Inc. raised its position in Ameren by 6,040.0% in the second quarter. Osterweis Capital Management Inc. now owns 307 shares of the utilities provider’s stock valued at $29,000 after purchasing an additional 302 shares during the period. Finally, Whittier Trust Co. of Nevada Inc. lifted its stake in shares of Ameren by 74.9% during the first quarter. Whittier Trust Co. of Nevada Inc. now owns 292 shares of the utilities provider’s stock worth $33,000 after purchasing an additional 125 shares in the last quarter. Institutional investors and hedge funds own 79.09% of the company’s stock.
Insider Buying and Selling In other Ameren news, SVP Theresa A. Shaw sold 325 shares of the firm’s stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $108.93, for a total transaction of $35,402.25. Following the completion of the sale, the senior vice president owned 32,340 shares in the company, valued at $3,522,796.20. This trade represents a 0.99% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michael L. Moehn sold 6,500 shares of Ameren stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $108.96, for a total value of $708,240.00. Following the sale, the insider owned 199,689 shares in the company, valued at $21,758,113.44. This represents a 3.15% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.29% of the stock is owned by company insiders.
Ameren Stock Performance Ameren stock opened at $106.19 on Tuesday. The company has a debt-to-equity ratio of 1.38, a current ratio of 0.53 and a quick ratio of 0.37. The firm’s fifty day moving average price is $110.76 and its 200 day moving average price is $110.34. The company has a market capitalization of $29.40 billion, a price-to-earnings ratio of 18.70, a price-to-earnings-growth ratio of 2.56 and a beta of 0.47. Ameren Corporation has a 12-month low of $96.57 and a 12-month high of $118.32. Ameren (NYSE:AEE – Get Free Report) last announced its earnings results on Thursday, July 30th. The utilities provider reported $1.13 earnings per share for the quarter, beating the consensus estimate of $1.08 by $0.05. Ameren had a return on equity of 10.95% and a net margin of 17.86%.The company had revenue of $2.09 billion during the quarter, compared to the consensus estimate of $2.27 billion. During the same period last year, the firm earned $1.01 earnings per share. The company’s revenue was down 5.8% on a year-over-year basis. Ameren has set its FY 2026 guidance at 5.250-5.450 EPS. On average, research analysts forecast that Ameren Corporation will post 5.4 EPS for the current fiscal year.
Ameren Announces Dividend The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Tuesday, September 8th will be issued a $0.75 dividend. The ex-dividend date of this dividend is Tuesday, September 8th. This represents a $3.00 dividend on an annualized basis and a yield of 2.8%. Ameren’s dividend payout ratio is currently 52.82%.
Analysts Set New Price Targets Several brokerages have recently weighed in on AEE. KeyCorp raised Ameren from a “sector weight” rating to an “overweight” rating and set a $122.00 target price for the company in a research report on Thursday, July 23rd. BTIG Research set a $126.00 target price on Ameren in a report on Thursday, July 23rd. Barclays boosted their price target on Ameren from $116.00 to $117.00 and gave the stock an “equal weight” rating in a research report on Thursday, July 9th. Weiss Ratings restated a “buy (b)” rating on shares of Ameren in a report on Friday, August 7th. Finally, Morgan Stanley lowered their price objective on shares of Ameren from $118.00 to $114.00 and set an “equal weight” rating for the company in a research report on Friday, August 21st. Ten research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $121.42.
View Our Latest Research Report on Ameren
Ameren Company Profile (Free Report)
Ameren Corporation (NYSE: AEE) is an integrated energy company headquartered in St. Louis, Missouri, that provides electric and natural gas delivery and related services in portions of Missouri and Illinois. The company operates regulated utility businesses that serve a broad mix of residential, commercial and industrial customers, and it participates in wholesale energy markets and transmission operations that support reliable service across its service territories.
Ameren’s core activities include generation, transmission and distribution of electricity, distribution of natural gas, and the provision of customer energy solutions such as demand-side management and energy efficiency programs.
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Bank of Nova Scotia purchased a new position in Ameren Corporation (NYSE:AEE – Free Report) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm purchased 29,086 shares of the utilities provider’s stock, valued at approximately $3,288,000.
Several other institutional investors and hedge funds have also modified their holdings of AEE. Keating Financial Advisory Services Inc. purchased a new position in shares of Ameren during the 2nd quarter valued at $27,000. Caitong International Asset Management Co. Ltd boosted its holdings in Ameren by 285.5% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 266 shares of the utilities provider’s stock worth $28,000 after buying an additional 197 shares during the period. Garton & Associates Financial Advisors LLC purchased a new stake in Ameren in the 4th quarter worth $29,000. Osterweis Capital Management Inc. increased its stake in Ameren by 6,040.0% in the 2nd quarter. Osterweis Capital Management Inc. now owns 307 shares of the utilities provider’s stock worth $29,000 after buying an additional 302 shares in the last quarter. Finally, Whittier Trust Co. of Nevada Inc. raised its holdings in Ameren by 74.9% during the first quarter. Whittier Trust Co. of Nevada Inc. now owns 292 shares of the utilities provider’s stock valued at $33,000 after acquiring an additional 125 shares during the period. Hedge funds and other institutional investors own 79.09% of the company’s stock.
Insider Buying and Selling In other Ameren news, insider Michael L. Moehn sold 6,500 shares of Ameren stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $108.96, for a total value of $708,240.00. Following the sale, the insider owned 199,689 shares of the company’s stock, valued at $21,758,113.44. The trade was a 3.15% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Theresa A. Shaw sold 325 shares of the company’s stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $108.93, for a total value of $35,402.25. Following the sale, the senior vice president directly owned 32,340 shares in the company, valued at $3,522,796.20. This trade represents a 0.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.29% of the company’s stock.
Ameren Stock Down 0.2% Shares of AEE stock opened at $106.94 on Wednesday. The company’s fifty day simple moving average is $110.94 and its two-hundred day simple moving average is $110.29. Ameren Corporation has a 52 week low of $96.57 and a 52 week high of $118.32. The stock has a market cap of $29.61 billion, a P/E ratio of 18.83, a PEG ratio of 2.59 and a beta of 0.47. The company has a quick ratio of 0.37, a current ratio of 0.53 and a debt-to-equity ratio of 1.38. Ameren (NYSE:AEE – Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The utilities provider reported $1.13 earnings per share for the quarter, beating analysts’ consensus estimates of $1.08 by $0.05. Ameren had a return on equity of 10.95% and a net margin of 17.86%.The firm had revenue of $2.09 billion during the quarter, compared to analyst estimates of $2.27 billion. During the same quarter last year, the business posted $1.01 earnings per share. The business’s quarterly revenue was down 5.8% compared to the same quarter last year. Ameren has set its FY 2026 guidance at 5.250-5.450 EPS. Analysts predict that Ameren Corporation will post 5.4 EPS for the current fiscal year.
Ameren Dividend Announcement The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 8th will be issued a dividend of $0.75 per share. This represents a $3.00 annualized dividend and a yield of 2.8%. The ex-dividend date is Tuesday, September 8th. Ameren’s dividend payout ratio (DPR) is currently 52.82%.
Analyst Upgrades and Downgrades Several equities analysts have recently commented on the company. JPMorgan Chase & Co. boosted their price objective on Ameren from $126.00 to $137.00 and gave the company an “overweight” rating in a research report on Thursday, July 16th. KeyCorp raised Ameren from a “sector weight” rating to an “overweight” rating and set a $122.00 target price on the stock in a research note on Thursday, July 23rd. Wall Street Zen cut Ameren from a “hold” rating to a “sell” rating in a report on Saturday, August 8th. BTIG Research set a $126.00 price target on Ameren in a research note on Thursday, July 23rd. Finally, Mizuho upped their price target on Ameren from $122.00 to $124.00 and gave the stock an “outperform” rating in a research note on Monday, August 3rd. Ten investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $121.42.
Read Our Latest Stock Analysis on Ameren
Ameren Company Profile (Free Report)
Ameren Corporation (NYSE: AEE) is an integrated energy company headquartered in St. Louis, Missouri, that provides electric and natural gas delivery and related services in portions of Missouri and Illinois. The company operates regulated utility businesses that serve a broad mix of residential, commercial and industrial customers, and it participates in wholesale energy markets and transmission operations that support reliable service across its service territories.
Ameren’s core activities include generation, transmission and distribution of electricity, distribution of natural gas, and the provision of customer energy solutions such as demand-side management and energy efficiency programs.
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Ameren (NYSE:AEE – Get Free Report) and Equatorial Energia (OTCMKTS:EQUEY – Get Free Report) are both utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.
Earnings and Valuation This table compares Ameren and Equatorial Energia”s revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Ameren $8.80 billion 3.34 $1.46 billion $5.68 18.67 Equatorial Energia N/A N/A N/A $0.25 28.05 Ameren has higher revenue and earnings than Equatorial Energia. Ameren is trading at a lower price-to-earnings ratio than Equatorial Energia, indicating that it is currently the more affordable of the two stocks. Analyst Recommendations This is a summary of recent ratings and price targets for Ameren and Equatorial Energia, as reported by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Ameren 0 3 10 0 2.77 Equatorial Energia 0 0 0 0 0.00 Ameren presently has a consensus target price of $121.42, suggesting a potential upside of 14.47%. Given Ameren’s stronger consensus rating and higher probable upside, research analysts plainly believe Ameren is more favorable than Equatorial Energia.
Dividends Ameren pays an annual dividend of $3.00 per share and has a dividend yield of 2.8%. Equatorial Energia pays an annual dividend of $0.07 per share and has a dividend yield of 1.1%. Ameren pays out 52.8% of its earnings in the form of a dividend. Equatorial Energia pays out 29.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Ameren has raised its dividend for 12 consecutive years. Ameren is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional and Insider Ownership 79.1% of Ameren shares are held by institutional investors. Comparatively, 0.0% of Equatorial Energia shares are held by institutional investors. 0.3% of Ameren shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability This table compares Ameren and Equatorial Energia’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Ameren 17.86% 10.95% 3.00% Equatorial Energia N/A N/A N/A Summary Ameren beats Equatorial Energia on 12 of the 14 factors compared between the two stocks.
About Ameren (Get Free Report)
Ameren Corporation, together with its subsidiaries, operates as a public utility holding company in the United States. The company operates through four segments: Ameren Missouri, Ameren Illinois Electric Distribution, Ameren Illinois Natural Gas, and Ameren Transmission. It engages in the rate-regulated electric generation, transmission, and distribution activities; and rate-regulated natural gas distribution business. In addition, the company generates electricity through coal, nuclear, and natural gas, as well as renewable sources, such as hydroelectric, wind, methane gas, and solar. It serves residential, commercial, and industrial customers. The company was founded in 1881 and is headquartered in Saint Louis, Missouri.
(Get Free Report)
Equatorial Energia S.A., through its subsidiaries, engages in the electricity generation, distribution, transmission, and sanitation operations in Brazil. It operates through Distribution, Transmission, Wind Generation, Services, Sanitation, and Other segments. The company generates energy from wind, solar, biomass, qualified co-generation, and hydroelectric plants. It also distributes electric energy in the 217 municipalities of Maranhão State with a concession area of approximately 332,000 square kilometers serving approximately 2.5 million consumers; and 144 municipalities of Pará State with a concession area covering 1,248,000 square kilometers serving approximately 2.6 million consumers. In addition, the company distributes electric energy to 224 municipalities of Piauí State with a concession area covering 251,000 square kilometers serving approximately 1.3 million consumers; 102 municipalities of Alagoas State with a concession area covering 27,848 square kilometers serving approximately 1.2 million consumers; 16 municipalities of Amapá State serving approximately 209,000 consumers; and 72 municipalities of Rio de Janeiro State serving approximately 1.8 million consumers. Equatorial Energia S.A. was founded in 1958 and is based in Brasília, Brazil.
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All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Ameren (AEE - Free Report) is headquartered in St Louis, and is in the Utilities sector. The stock has seen a price change of 8.94% since the start of the year. Currently paying a dividend of $0.75 per share, the company has a dividend yield of 2.76%. In comparison, the Utility - Electric Power industry's yield is 3.19%, while the S&P 500's yield is 1.33%.
Looking at dividend growth, the company's current annualized dividend of $3.00 is up 5.6% from last year. Over the last 5 years, Ameren has increased its dividend 5 times on a year-over-year basis for an average annual increase of 7.11%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Ameren's current payout ratio is 56%, meaning it paid out 56% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, AEE expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $5.40 per share, representing a year-over-year earnings growth rate of 7.36%.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. But, not every company offers a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that AEE is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).
The Utilities group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Ameren (AEE - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.
Ameren is a member of the Utilities sector. This group includes 111 individual stocks and currently holds a Zacks Sector Rank of #13. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Ameren is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for AEE's full-year earnings has moved 0.6% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that AEE has returned about 8.9% since the start of the calendar year. At the same time, Utilities stocks have gained an average of 2.5%. As we can see, Ameren is performing better than its sector in the calendar year.
Another Utilities stock, which has outperformed the sector so far this year, is Exelon (EXC - Free Report) . The stock has returned 3.4% year-to-date.
For Exelon, the consensus EPS estimate for the current year has increased 0.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Ameren belongs to the Utility - Electric Power industry, a group that includes 63 individual companies and currently sits at #151 in the Zacks Industry Rank. On average, stocks in this group have gained 3.3% this year, meaning that AEE is performing better in terms of year-to-date returns. Exelon is also part of the same industry.
Investors interested in the Utilities sector may want to keep a close eye on Ameren and Exelon as they attempt to continue their solid performance.
Alberta Investment Management Corp purchased a new stake in Ameren Corporation (NYSE:AEE – Free Report) in the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 4,900 shares of the utilities provider’s stock, valued at approximately $554,000.
Other institutional investors and hedge funds also recently made changes to their positions in the company. Caitong International Asset Management Co. Ltd raised its position in Ameren by 285.5% during the third quarter. Caitong International Asset Management Co. Ltd now owns 266 shares of the utilities provider’s stock worth $28,000 after acquiring an additional 197 shares in the last quarter. Garton & Associates Financial Advisors LLC bought a new position in shares of Ameren in the 4th quarter valued at about $29,000. Osterweis Capital Management Inc. increased its stake in shares of Ameren by 6,040.0% during the 2nd quarter. Osterweis Capital Management Inc. now owns 307 shares of the utilities provider’s stock worth $29,000 after purchasing an additional 302 shares during the last quarter. Whittier Trust Co. of Nevada Inc. increased its stake in shares of Ameren by 74.9% during the 1st quarter. Whittier Trust Co. of Nevada Inc. now owns 292 shares of the utilities provider’s stock worth $33,000 after purchasing an additional 125 shares during the last quarter. Finally, Annis Gardner Whiting Capital Advisors LLC raised its holdings in shares of Ameren by 45.4% in the 4th quarter. Annis Gardner Whiting Capital Advisors LLC now owns 349 shares of the utilities provider’s stock valued at $35,000 after purchasing an additional 109 shares during the period. Institutional investors own 79.09% of the company’s stock.
Ameren Stock Performance NYSE AEE opened at $109.52 on Tuesday. The firm has a 50-day moving average of $111.06 and a 200-day moving average of $110.10. The company has a debt-to-equity ratio of 1.38, a quick ratio of 0.37 and a current ratio of 0.53. The stock has a market cap of $30.32 billion, a PE ratio of 19.28, a P/E/G ratio of 2.65 and a beta of 0.47. Ameren Corporation has a 52-week low of $96.57 and a 52-week high of $118.32.
Ameren (NYSE:AEE – Get Free Report) last announced its earnings results on Thursday, July 30th. The utilities provider reported $1.13 EPS for the quarter, topping the consensus estimate of $1.08 by $0.05. Ameren had a net margin of 17.86% and a return on equity of 10.95%. The business had revenue of $2.09 billion during the quarter, compared to the consensus estimate of $2.27 billion. During the same quarter in the previous year, the firm posted $1.01 EPS. Ameren’s revenue was down 5.8% compared to the same quarter last year. Ameren has set its FY 2026 guidance at 5.250-5.450 EPS. On average, sell-side analysts anticipate that Ameren Corporation will post 5.39 EPS for the current year. Ameren Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 8th will be issued a dividend of $0.75 per share. This represents a $3.00 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date is Tuesday, September 8th. Ameren’s payout ratio is currently 52.82%.
Insider Activity at Ameren In other Ameren news, insider Michael L. Moehn sold 6,500 shares of the company’s stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $108.96, for a total value of $708,240.00. Following the transaction, the insider directly owned 199,689 shares of the company’s stock, valued at $21,758,113.44. This represents a 3.15% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Theresa A. Shaw sold 325 shares of the stock in a transaction on Friday, August 14th. The stock was sold at an average price of $108.93, for a total value of $35,402.25. Following the transaction, the senior vice president owned 32,340 shares in the company, valued at $3,522,796.20. The trade was a 0.99% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.29% of the stock is currently owned by corporate insiders.
Analyst Ratings Changes AEE has been the subject of several recent analyst reports. BMO Capital Markets cut their target price on shares of Ameren from $121.00 to $119.00 and set an “outperform” rating for the company in a research note on Wednesday, July 22nd. Mizuho boosted their price target on Ameren from $122.00 to $124.00 and gave the stock an “outperform” rating in a research report on Monday, August 3rd. Truist Financial dropped their price objective on Ameren from $124.00 to $120.00 and set a “buy” rating on the stock in a research note on Monday. Wall Street Zen cut Ameren from a “hold” rating to a “sell” rating in a research report on Saturday, August 8th. Finally, JPMorgan Chase & Co. lifted their target price on Ameren from $126.00 to $137.00 and gave the stock an “overweight” rating in a research note on Thursday, July 16th. Ten equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Ameren has an average rating of “Moderate Buy” and a consensus price target of $121.75.
Read Our Latest Stock Analysis on AEE
Ameren Profile (Free Report)
Ameren Corporation (NYSE: AEE) is an integrated energy company headquartered in St. Louis, Missouri, that provides electric and natural gas delivery and related services in portions of Missouri and Illinois. The company operates regulated utility businesses that serve a broad mix of residential, commercial and industrial customers, and it participates in wholesale energy markets and transmission operations that support reliable service across its service territories.
Ameren’s core activities include generation, transmission and distribution of electricity, distribution of natural gas, and the provision of customer energy solutions such as demand-side management and energy efficiency programs.
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, /PRNewswire/ -- Ameren Illinois Company, a subsidiary of Ameren Corporation (NYSE: AEE), announced today the pricing of a public offering of $400 million aggregate principal amount of 5.50% first mortgage bonds due 2036 at 99.988% of their principal amount. The transaction is expected to close on August 24, 2026, subject to the satisfaction of customary closing conditions.
Ameren Illinois intends to use the net proceeds of the offering to repay a portion of its short-term debt.
Goldman Sachs & Co. LLC, KeyBanc Capital Markets Inc., SMBC Nikko Securities America, Inc. and TD Securities (USA) LLC are acting as joint book-running managers for the offering.
The offering is being made only by means of a prospectus and related prospectus supplement. A prospectus supplement related to the offering will be filed with the Securities and Exchange Commission. Copies of the prospectus and related prospectus supplement for the offering, when available, may be obtained via the Securities and Exchange Commission's website at www.sec.gov or by contacting TD Securities (USA) LLC, 1 Vanderbilt Avenue, 11th Floor, New York, New York 10017, Attn: DCM – Transaction Advisory, phone: 1-855-495-9846. This press release does not constitute an offer to sell or a solicitation of an offer to buy the first mortgage bonds and shall not constitute an offer, solicitation or sale in any jurisdiction in which, or to any person to whom, such an offer, solicitation or sale is unlawful.
About Ameren Illinois
Ameren Illinois delivers energy to 1.2 million electric and more than 800,000 natural gas customers throughout central and southern Illinois. Our service territory covers more than 1,200 communities and 43,700 square miles and our mission is to power the quality of life.
, /PRNewswire/ -- The board of directors of Ameren Corporation (NYSE: AEE) today declared a quarterly cash dividend on its common stock of 75 cents per share. This dividend is payable Sept. 30, 2026, to shareholders of record at the close of business on Sept. 8, 2026.
Separately, the board of directors of Union Electric Company, doing business as Ameren Missouri, declared regular quarterly cash dividends on all classes of Union Electric Company's preferred stock. These preferred stock dividends are payable Nov. 15, 2026, to shareholders of record at the close of business on Oct. 15, 2026.
In addition, the board of directors of Ameren Illinois Company, doing business as Ameren Illinois, declared regular quarterly cash dividends on all classes of Ameren Illinois Company's preferred stock. These preferred stock dividends are payable Nov. 1, 2026, to shareholders of record at the close of business on Oct. 9, 2026.
About Ameren Corporation
St. Louis-based Ameren Corporation powers the quality of life for 2.5 million electric customers and more than 900,000 natural gas customers in a 64,000-square-mile area through its Ameren Missouri and Ameren Illinois rate-regulated utility subsidiaries. Ameren Illinois provides electric transmission and distribution service and natural gas distribution service. Ameren Missouri provides electric generation, transmission and distribution services, as well as natural gas distribution service. Ameren Transmission Company of Illinois develops, owns and operates rate-regulated regional electric transmission projects in the Midcontinent Independent System Operator, Inc. For more information, visit Ameren.com, or follow us at @AmerenCorp, Facebook.com/AmerenCorp, or LinkedIn.com/company/Ameren.
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Ameren (AEE - Free Report) is headquartered in St Louis, and is in the Utilities sector. The stock has seen a price change of 9.59% since the start of the year. The utility is currently shelling out a dividend of $0.75 per share, with a dividend yield of 2.74%. This compares to the Utility - Electric Power industry's yield of 3.11% and the S&P 500's yield of 1.32%.
Looking at dividend growth, the company's current annualized dividend of $3.00 is up 5.6% from last year. Over the last 5 years, Ameren has increased its dividend 5 times on a year-over-year basis for an average annual increase of 7.11%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Ameren's current payout ratio is 56%, meaning it paid out 56% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for AEE for this fiscal year. The Zacks Consensus Estimate for 2026 is $5.39 per share, representing a year-over-year earnings growth rate of 7.16%.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. It's important to keep in mind that not all companies provide a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, AEE presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).
Investors in Ameren Corporation (AEE - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Sept. 18, 2026 $90 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for Ameren shares, but what is the fundamental picture for the company? Currently, Ameren is a Zacks Rank #2 (Buy) in the Utility - Electric Power industry that ranks in the Bottom 29% of our Zacks Industry Rank. Over the last 60 days, no analyst increased the earnings estimates for the to-be-reported quarter, while two have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the to-be-reported quarter from $2.23 per share to $2.27 in that period.
Given the way analysts feel about Ameren right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
For those looking to find strong Utilities stocks, it is prudent to search for companies in the group that are outperforming their peers. Ameren (AEE - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Utilities sector should help us answer this question.
Ameren is one of 111 individual stocks in the Utilities sector. Collectively, these companies sit at #15 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Ameren is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for AEE's full-year earnings has moved 0.6% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, AEE has returned 9.7% so far this year. Meanwhile, the Utilities sector has returned an average of 4.6% on a year-to-date basis. This means that Ameren is performing better than its sector in terms of year-to-date returns.
Pinnacle West (PNW - Free Report) is another Utilities stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 13.7%.
For Pinnacle West, the consensus EPS estimate for the current year has increased 0.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Ameren belongs to the Utility - Electric Power industry, which includes 63 individual stocks and currently sits at #175 in the Zacks Industry Rank. On average, stocks in this group have gained 5.8% this year, meaning that AEE is performing better in terms of year-to-date returns. Pinnacle West is also part of the same industry.
Investors with an interest in Utilities stocks should continue to track Ameren and Pinnacle West. These stocks will be looking to continue their solid performance.
Second Quarter 2026 EPS: $1.13 per share, compared to $1.01 per share in the second quarter of 2025.2026 EPS Guidance: Reaffirmed at a range of $5.25-$5.45 per
3 Low-Volatility Plays Quietly Making a Name For ThemselvesAmeren NYSE: AEE reported second-quarter 2026 earnings of $1.13 per share, up from $1.01 per share a year earlier, as returns on infrastructure investments more than offset higher spending on tree trimming and energy-center maintenance.
Chairman, President and Chief Executive Officer Marty Lyons said the company reaffirmed its 2026 earnings guidance of $5.25 to $5.45 per share and expects results for the full year to be at or above the midpoint of that range. Ameren attributed its year-over-year earnings growth primarily to investments intended to strengthen the grid and expand generation resources.
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The Top 4 Utilities for Value, Yield, and Upside PotentialThe utility invested more than $2.6 billion in energy infrastructure during the first six months of 2026. Lyons said those investments helped reduce outage frequency and duration during several severe-weather events in the second quarter. Ameren serves 2.5 million electric customers and more than 900,000 natural-gas customers across Missouri and Illinois.
Large-load pipeline expands Ameren highlighted continued growth in its economic-development pipeline, particularly from large-load customers in Missouri. The company said it has executed 3.4 gigawatts of construction agreements in the state, including 2.8 gigawatts of projects with signed electric service agreements, or ESAs. An additional 4 gigawatts of projects have completed interconnection studies.
Google and Amazon announced projects in Ameren Missouri’s service territory during the quarter representing a combined planned investment of $25 billion. Lyons said the projects are included in the previously disclosed 2.8 gigawatts of signed ESAs, and both companies have held groundbreaking ceremonies and begun construction.
Under Missouri Senate Bill 4, the large-load customers will pay 100% of the power and infrastructure costs driven by their operations, according to Lyons. He said the customers are also expected to contribute toward the grid’s fixed costs once operational, which could provide long-term benefits for other customers.
Ameren expects the signed ESAs to begin generating material sales in the second half of 2027. The company expects annual electricity sales to increase 60% from 2025 levels by the end of 2029. Lyons said the 2.8 gigawatts of signed agreements represent upside to the company’s prior planning assumptions, which had contemplated 1.2 gigawatts of additional sales by 2030 and a 6.2% compound annual sales growth rate from 2026 through 2030.
The company plans to file an updated Missouri Integrated Resource Plan in late September. Ameren said it will provide updated sales, capital-investment, financing and long-term earnings-growth forecasts during its third-quarter earnings call.
Generation and transmission investments Ameren placed 350 megawatts of solar generation into service this year, including the 300-megawatt Split Rail Renewable Energy Center, which began operating in June, one month ahead of schedule. Another 2,250 megawatts of simple-cycle natural gas, solar and battery-storage resources have been approved, are under construction and are expected to enter service in 2027 and 2028.
In May, the company filed certificate-of-convenience-and-necessity requests for nearly 1,000 additional megawatts of solar and storage projects planned for service in 2028 and 2029. This month, Ameren filed for its proposed 2.1-gigawatt West Alton Natural Gas Combined Cycle facility, which is expected to enter service in 2031.
Group President of Ameren Utilities Michael Moehn said the company has obtained turbines for its three gas projects and secured critical long-lead components for the resource additions discussed on the call. He said the West Alton project will use a structure other than a traditional engineering, procurement and construction contract, reflecting current market conditions, and that the company expects to provide more details after completing negotiations.
Ameren also said it won the opportunity to develop all competitive long-range transmission projects in its Illinois service territory from the first two MISO Long-Range Transmission Planning tranches. During the second quarter, MISO selected Ameren’s joint proposals for the WIIL and STIW Tranche 2 projects. The company has submitted joint bids for two remaining Tranche 2.1 projects in Iowa, with selections expected by November.
The company’s investment pipeline now totals more than $71 billion through 2035, subject to changes expected later this year following the updated Missouri resource plan.
Rate cases and financing plans Chief Financial Officer Lenny Singh discussed Ameren Missouri’s request for a $343 million electric revenue increase, filed with the Missouri Public Service Commission in late June. The request seeks recovery of grid reliability and resiliency investments and includes projected data-center revenue savings for retail customers, along with a proposed income-eligible discount rate.
Ameren said the projected revenues from new large-load customers would reduce customer bills by an estimated $21 million over the two years following the rate review compared with what customers otherwise would have paid. Moehn said the savings reflect data-center revenues expected to begin ramping modestly in the first half of 2027 and could increase as projects scale through 2028 and 2029.
The company expects a Missouri PSC order by May 2027, with new rates effective in June 2027. Ameren Illinois separately requested a $31 million revenue adjustment under its electric multiyear rate plan, with an Illinois Commerce Commission decision expected in December and rates effective in January 2027 if approved.
To fund its infrastructure program, Ameren expects approximately $4 billion of equity needs from 2026 through 2030. Singh said the company sold forward about $600 million of equity in 2025 for expected issuance near the end of 2026, and it has sold forward approximately $1.2 billion of common stock this year through its at-the-market program. S&P Global Ratings and Moody’s reaffirmed the company’s stable outlooks and BBB+ and Baa1 ratings, respectively.
About Ameren (NYSE:AEE)Ameren Corporation NYSE: AEE is an integrated energy company headquartered in St. Louis, Missouri, that provides electric and natural gas delivery and related services in portions of Missouri and Illinois. The company operates regulated utility businesses that serve a broad mix of residential, commercial and industrial customers, and it participates in wholesale energy markets and transmission operations that support reliable service across its service territories.
Ameren's core activities include generation, transmission and distribution of electricity, distribution of natural gas, and the provision of customer energy solutions such as demand-side management and energy efficiency programs.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Key Takeaways Ameren beat earnings estimates as infrastructure investments and lower fuel costs boosted operating income.AEE revenues fell year over year, missing estimates despite higher electricity sales led by Ameren Missouri.Ameren reaffirmed 2026 earnings guidance and maintained its long-term annual earnings growth outlook. Ameren Corporation (AEE - Free Report) reported second-quarter 2026 earnings of $1.13 per share, which beat the Zacks Consensus Estimate of $1.08 by 4.6%. Earnings increased 11.9% from $1.01 in the year-ago quarter, supported by infrastructure investments and gains from innovative energy technology investments.
AEE’s RevenuesQuarterly revenues of $2.09 billion declined 5.8% year over year and missed the consensus estimate of $2.39 billion by 13%. Total electricity sales increased 3.4% to 16,210 million kilowatt-hours, led by higher Ameren Missouri volumes.
Ameren's Lower Fuel Costs Lift Operating IncomeTotal operating expenses declined 9.8% year over year to $1.63 billion. Fuel and purchased power expenses decreased to $507 million from $794 million, marking the largest cost reduction in the quarter.
Other operations and maintenance expenses rose to $521 million from $460 million. Management attributed the increase to reliability-focused tree trimming and energy center maintenance. Depreciation and amortization expenses increased to $420 million from $386 million.
Operating income improved 11.7% to $459 million. However, interest charges rose to $209 million from $187 million, reflecting Ameren's ongoing financing requirements.
AEE’s Segment Earnings AdvanceAmeren Missouri generated second-quarter earnings of $157 million, up from $150 million a year earlier. Earnings from increased infrastructure investments and electric and natural gas service rates were partly offset by higher operating and maintenance expenses and lower weather-driven retail sales.
Ameren Transmission earnings increased to $96 million from $86 million. The improvement reflected earnings on additional infrastructure investments.
Ameren Illinois Electric Distribution earnings rose to $70 million from $64 million in the prior-year quarter. The segment benefited from increased electric distribution infrastructure investments.
Ameren Illinois Natural Gas earnings slipped to $9 million from $10 million. The Ameren Parent loss narrowed to $18 million from $35 million, primarily due to earnings from innovative energy technology investments.
AEE’s Financial ConditionAmeren reported cash and cash equivalents of $12 million as of June 30, 2026, compared with $13 million as of Dec. 31, 2025.
Long-term debt totaled $19.06 billion as of June 30, 2026, up from $18.21 billion at the end of 2025.
For the first six months of 2026, net cash provided by operating activities totaled $1.19 billion compared with $1.29 billion a year earlier. Capital expenditures increased to $2.65 billion from $2.13 billion.
Ameren Reaffirms 2026 Earnings ViewAmeren reaffirmed its 2026 earnings guidance of $5.25-$5.45 per share. The outlook assumes normal temperatures during the second half of the year. The Zacks Consensus Estimate for 2026 earnings is pegged at $5.39, which is higher that the midpoint of the company’s guided range.
Management anticipates higher Ameren Missouri operating and maintenance expenses, primarily from tree trimming and energy center maintenance. It also expects to issue about 6.4 million common shares near year-end upon settlement of forward sale agreements.
Ameren has maintained its expectation of 6-8% annual earnings growth from 2026 through 2030. The company stated that 2.8 gigawatts of executed electric service agreements represent potential upside and plans to update its long-term growth guidance during the third-quarter earnings call.
AEE’s Zacks RankAmeren currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Recent Utility ReleasesCenterPoint Energy, Inc. (CNP - Free Report) reported second-quarter 2026 adjusted earnings of 40 cents per share, which surpassed the Zacks Consensus Estimate of 37 cents by 8.1%. The bottom line increased 37.9% from the year-ago quarter’s figure of 29 cents.
CNP generated revenues of $2.15 billion, which beat the Zacks Consensus Estimate by 1.8%. The top line was 10.7% higher than the year-ago quarter’s reported figure of $1.94 billion.
CMS Energy Corporation (CMS - Free Report) reported second-quarter 2026 adjusted EPS of 37 cents, which came in line with the Zacks Consensus Estimate. However, the bottom line declined 47.9% from 71 cents in the year-ago quarter.
CMS' operating revenues totaled $1.83 billion, which missed the Zacks Consensus Estimate of $1.91 billion by 4.2%. The top line also fell 0.5% from $1.84 billion in the prior-year quarter.
NextEra Energy (NEE - Free Report) reported second-quarter 2026 EPS of $1.15, up 9.5% from $1.05 a year ago. The figure beat the Zacks Consensus Estimate of $1.09 by 5.5%.
NEE’s total operating revenues were $7.53 billion, which rose 12.4% year over year but missed the Zacks Consensus Estimate of $7.99 billion by 5.8%.
For the quarter ended June 2026, Ameren (AEE - Free Report) reported revenue of $2.09 billion, down 5.8% over the same period last year. EPS came in at $1.13, compared to $1.01 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $2.4 billion, representing a surprise of -12.99%. The company delivered an EPS surprise of +4.63%, with the consensus EPS estimate being $1.08.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Ameren performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Electric Revenues- Ameren Missouri- Total: $1.09 billion versus $1.44 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -16.8% change.Gas Revenues- Ameren Illinois Natural Gas: $176 million compared to the $168.47 million average estimate based on two analysts. The reported number represents a change of +11.4% year over year.Electric Revenues- Ameren Illinois Electric Distribution- Total: $629 million compared to the $585.68 million average estimate based on two analysts. The reported number represents a change of +9.8% year over year.View all Key Company Metrics for Ameren here>>>
Shares of Ameren have returned -2% over the past month versus the Zacks S&P 500 composite's -1.5% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
Ameren (AEE - Free Report) came out with quarterly earnings of $1.13 per share, beating the Zacks Consensus Estimate of $1.08 per share. This compares to earnings of $1.01 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +4.63%. A quarter ago, it was expected that this utility would post earnings of $1.17 per share when it actually produced earnings of $1.28, delivering a surprise of +9.4%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Ameren, which belongs to the Zacks Utility - Electric Power industry, posted revenues of $2.09 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 12.99%. This compares to year-ago revenues of $2.22 billion. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Ameren shares have added about 10.1% since the beginning of the year versus the S&P 500's gain of 6.9%.
What's Next for Ameren?While Ameren has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Ameren was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.27 on $2.82 billion in revenues for the coming quarter and $5.39 on $9.37 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Utility - Electric Power is currently in the bottom 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, MGE (MGEE - Free Report) , has yet to report results for the quarter ended June 2026.
This public utility holding company is expected to post quarterly earnings of $0.77 per share in its upcoming report, which represents a year-over-year change of +6.9%. The consensus EPS estimate for the quarter has been revised 8.7% higher over the last 30 days to the current level.
MGE's revenues are expected to be $166.37 million, up 4.3% from the year-ago quarter.
Second Quarter Diluted Earnings Per Share (EPS) were $1.13 in 2026 vs. $1.01 in 2025 Reaffirmed 2026 Earnings Guidance Range of $5.25 to $5.45 per Diluted Share , /PRNewswire/ -- Ameren Corporation (NYSE: AEE) today announced second quarter 2026 net income attributable to common shareholders of $314 million, or $1.13 per diluted share, compared to second quarter 2025 net income of $275 million, or $1.01 per diluted share.
Second quarter 2026 results reflected earnings on infrastructure investments to improve system reliability, resiliency and service quality at each business segment and from investments in innovative energy technology. These positive contributions were partially offset by higher operations and maintenance expenses, primarily driven by increased reliability-focused tree trimming and energy center maintenance. Finally, the earnings per diluted share comparison reflected higher weighted-average basic common shares outstanding in the second quarter of 2026.
"Our second quarter results demonstrate our commitment to delivering value for our customers through consistent execution of our strategy," said Martin J. Lyons, Jr., chairman, president and chief executive officer of Ameren Corporation. "We are investing in a diverse and resilient energy portfolio, strengthening the reliability of the grid and supporting economic growth throughout our region. By focusing on delivering reliable service in a cost-effective way, we are building the energy infrastructure needed to serve our customers today while preparing for the opportunities ahead."
Ameren recorded net income attributable to common shareholders for the six months ended June 30, 2026, of $671 million, or $2.41 per diluted share, compared to net income attributable to common shareholders for the six months ended June 30, 2025, of $564 million, or $2.08 per diluted share. The increase in year-over-year six month earnings reflected earnings on infrastructure investments to improve system reliability, resiliency and service quality for our electric and natural gas customers and from investments in innovative energy technology. These positive contributions were partially offset by higher operations and maintenance expenses, primarily driven by increased reliability-focused tree trimming and energy center maintenance, lower electric retail sales, primarily driven by milder temperatures, and higher interest expense. Finally, the earnings per diluted share comparison reflected higher weighted-average basic common shares outstanding in 2026.
Earnings Guidance
Today, Ameren reaffirmed its 2026 earnings guidance range of $5.25 to $5.45 per share. Earnings guidance for 2026 assumes normal temperatures for the last six months of the year and is subject to the effects of, among other things: regulatory, judicial and legislative actions; energy center and energy transmission and distribution operations; energy, economic, capital and credit market conditions; customer usage; severe storms; returns on market-based and other investments; unusual or otherwise unexpected gains or losses; and other risks and uncertainties outlined, or referred to, in the Forward-looking Statements section of this press release.
Ameren Missouri Segment Results
Ameren Missouri second quarter 2026 earnings were $157 million, compared to second quarter 2025 earnings of $150 million. The year-over-year increase reflected earnings on increased infrastructure investments, including infrastructure reflected in electric and natural gas service rates that became effective June 1, 2025, and September 1, 2025, respectively. These positive factors were partially offset by higher operations and maintenance expenses, primarily driven by increased reliability-focused tree trimming and energy center maintenance, and lower electric retail sales, primarily driven by milder temperatures.
Ameren Transmission Segment Results
Ameren Transmission second quarter 2026 earnings were $96 million, compared to second quarter 2025 earnings of $86 million. The year-over-year increase reflected earnings on increased infrastructure investments.
Ameren Illinois Electric Distribution Segment Results
Ameren Illinois Electric Distribution second quarter 2026 earnings were $70 million, compared to second quarter 2025 earnings of $64 million. The year-over-year increase reflected earnings on increased infrastructure investments.
Ameren Illinois Natural Gas Segment Results
Ameren Illinois Natural Gas second quarter 2026 earnings were $9 million, compared to second quarter 2025 earnings of $10 million.
Ameren Parent Results (includes items not reported in a business segment)
Ameren Parent second quarter 2026 loss was $18 million, compared to a second quarter 2025 loss of $35 million. The year-over-year improvement primarily reflected earnings from innovative energy technology investments.
Analyst Conference Call
Ameren will conduct a conference call for financial analysts at 9 a.m. Central Time on Friday, July 31, 2026, to discuss second quarter 2026 earnings, 2026 earnings guidance and other matters. Investors, the news media and the public may listen to a live broadcast of the call at AmerenInvestors.com by clicking on "Webcast" under "Latest Quarterly Results," where an accompanying slide presentation will also be available. The conference call and presentation will be archived in the "Investors" section of the website under "Quarterly Earnings."
About Ameren
St. Louis-based Ameren Corporation powers the quality of life for 2.5 million electric customers and more than 900,000 natural gas customers in a 64,000-square-mile area through its Ameren Missouri and Ameren Illinois rate-regulated utility subsidiaries. Ameren Illinois provides electric transmission and distribution service and natural gas distribution service. Ameren Missouri provides electric generation, transmission and distribution service, as well as natural gas distribution service. Ameren Transmission Company of Illinois develops, owns and operates rate-regulated regional electric transmission projects in the Midcontinent Independent System Operator, Inc. For more information, visit Ameren.com, or follow us at @AmerenCorp, Facebook.com/AmerenCorp, or LinkedIn.com/company/Ameren.
Forward-looking Statements
Statements in this release not based on historical facts are considered "forward-looking" and, accordingly, involve risks and uncertainties that could cause actual results to differ materially from those discussed. Although such forward-looking statements have been made in good faith and are based on reasonable assumptions, there is no assurance that the expected results will be achieved. These statements include (without limitation) statements as to future expectations, beliefs, plans, projections, strategies, targets, estimates, objectives, events, conditions, and financial performance. In connection with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, we are providing this cautionary statement to identify important factors that could cause actual results to differ materially from those anticipated. The following factors, in addition to those discussed within Risk Factors in Ameren's Annual Report on Form 10-K for the year ended December 31, 2025, and elsewhere in this release and in our other filings with the Securities and Exchange Commission, could cause actual results to differ materially from management expectations suggested in such forward-looking statements:
regulatory, judicial, or legislative actions, and any changes in regulatory policies and ratemaking determinations that may change regulatory recovery mechanisms or our ability to recover costs and earn a return, such as those that may result from Ameren Missouri's electric service regulatory rate review filed with the MoPSC in June 2026, Ameren Illinois' 2025 electric distribution service revenue requirement reconciliation adjustment review filed with the ICC in April 2026, Ameren Illinois' January 2026 appeal of the November 2025 ICC order issued in the 2025 natural gas delivery service rate review, and Ameren Illinois' 2020 QIP reconciliation hearing; our ability to control costs and make substantial investments in our businesses, including our ability to recover costs and investments, and to earn our allowed return on equity (ROE), within frameworks established by our regulators, while maintaining affordability for our customers; the effect and duration of Ameren Illinois' election to utilize MYRPs for electric distribution service ratemaking effective for rates beginning in 2024, including the effect of the reconciliation cap on the electric distribution revenue requirement; the effect on Ameren Missouri of any customer rate caps or limitations on increasing the electric service revenue requirement pursuant to Ameren Missouri's election to use the plant-in-service accounting regulatory mechanism; Ameren Missouri's ability to construct and/or acquire wind, solar, and other renewable energy generation facilities and battery storage, as well as natural gas-fired and nuclear energy centers, extend the operating license for the Callaway Energy Center, reliably operate existing energy centers through their expected retirement dates, retire fossil fuel-fired energy centers, and implement new or existing customer energy-efficiency programs, including any such construction, acquisition, retirement, or implementation in connection with its Smart Energy Plan, preferred resource plan, or emissions reduction goals, and to recover its cost of investment, a related return, and, in the case of customer energy-efficiency programs, any lost electric revenues in a timely manner, each of which is affected by the ability to timely obtain all necessary regulatory and project approvals, including certificates of convenience and necessity (CCNs) from the MoPSC or any other required approvals, including permits to operate the facilities; our ability to realize and support forecasted energy demand and capacity from new and potential new customers, including demand growth dependent on the addition of new data centers and other large primary service customers within our service territories, such as the large load customers that signed electric service agreements with Ameren Missouri in 2026; the effects on energy prices and demand for our services resulting from customer growth patterns or usage, including demand from data centers, technological advances, including advances in customer energy efficiency, electric vehicles, electrification of various industries, energy storage, and private generation sources, which are becoming increasingly cost-competitive; Ameren Missouri's ability to earn, utilize, or transfer at a reasonable price federal production and investment tax credits related to renewable energy and energy storage projects and nuclear energy production; the cost of wind, solar, and other renewable generation and battery storage technologies; and our ability to obtain timely interconnection agreements with the MISO or other regional transmission organizations at an acceptable cost for each facility; the effect of changes in federal domestic energy policy to support investment in fossil fuel infrastructure and the effect of those changes on Ameren Missouri's ability to construct and/or acquire renewable energy generation facilities and battery storage; the outcome of the MISO long-range transmission planning process, including potential changes to planned projects, the ability to obtain competitively bid or assigned projects and related approvals, including CCNs from the MoPSC and ICC or any other required approvals, and changes in applicable legislative or regulatory frameworks; the inability of our counterparties to meet their obligations with respect to contracts, credit agreements, and financial instruments, including as they relate to the construction and acquisition of electric and natural gas utility infrastructure and the ability of counterparties to complete projects, which is dependent upon the availability of labor and necessary materials and equipment, including those obligations that are affected by supply chain disruptions; advancements in energy technologies, including carbon capture, utilization, and sequestration, hydrogen fuel for electric production and energy storage, next generation nuclear, and large-scale long-cycle battery storage, and the impact of federal and state energy and economic policies with respect to those technologies; the effects of changes in federal, state, or local laws and other domestic or international governmental actions, including monetary, fiscal, foreign trade, and energy policies, foreign trade tariffs, executive orders, geopolitical developments, or extended federal government shutdowns or defunding; the effects of changes in federal, state, or local tax laws or rates; additional regulations, interpretations, amendments, or technical corrections to, or in connection with the One Big Beautiful Bill Act (OBBBA) and the Inflation Reduction Act of 2022 (IRA), including the effects of the OBBBA as it relates to construction timelines of solar, wind, and battery storage projects along with the ability to obtain materials for these projects to be eligible for federal production and investment tax credits; and any challenges to the tax positions we have taken, as well as resulting effects on customer rates; the cost and availability of fuel, such as low-sulfur coal, natural gas, and enriched uranium used to produce electricity; the cost and availability of natural gas for distribution and the cost and availability of purchased power, including capacity, zero emission credits, renewable energy credits, and emission allowances; and the level and volatility of future market prices for such commodities and credits; disruptions in the delivery of fuel, failure of our fuel suppliers to provide adequate quantities or quality of fuel, or lack of adequate inventories of fuel, including nuclear fuel assemblies primarily from the one Nuclear Regulatory Commission-licensed supplier of assemblies for Ameren Missouri's Callaway Energy Center; the cost and availability of transmission capacity required for the energy generated by Ameren Missouri's energy centers or as required to satisfy Ameren Missouri's energy sales; the effectiveness of our risk management strategies and our use of financial and derivative instruments; the ability to obtain sufficient insurance at a reasonable cost, or, in the absence of insurance, the ability to timely recover uninsured losses from our customers; the impact of cyberattacks and data security risks on us, our suppliers, or other entities on the grid, including those arising from generative or agentic artificial intelligence, which could, among other things, result in the loss of operational control of energy centers and electric and natural gas transmission and distribution systems and/or the loss of data, such as customer, employee, financial, and operating system information; acts of sabotage, which have increased in frequency and severity within the utility industry, war, terrorism, or other intentionally disruptive acts; business, economic, geopolitical, and capital market conditions, including foreign trade tariffs or trade wars, evolving federal regulatory priorities, and the impact of such conditions on interest rates, inflation, commodity prices, and investments; the impact of inflation or a recession on our customers and suppliers and the related impact on our results of operations, financial position, and liquidity; disruptions of the capital and credit markets, deterioration in our credit metrics, or other events that may have an adverse effect on the cost or availability of capital, including short-term credit and liquidity, and our ability to access the capital and credit markets on reasonable terms when needed; the actions of credit rating agencies and the effects of such actions; the impact of weather conditions and other natural conditions on us and our customers, including the impact of system outages and the level of wind and solar resources; the construction, installation, performance, and cost recovery of generation, transmission, and distribution assets; the ability to maintain system reliability by Ameren Missouri, the MISO, and the electric utility industry, as well as Ameren Missouri's ability to meet existing or future generation capacity and power obligations; the effects of failures of electric generation, electric and natural gas transmission or distribution, or natural gas storage facilities systems and equipment, which could result in unanticipated liabilities or unplanned outages; the operation of Ameren Missouri's Callaway Energy Center, including planned and unplanned outages, as well as the ability to recover costs associated with such outages and the impact of such outages on off-system sales and purchased power, among other things; Ameren Missouri's ability to recover the remaining investment and decommissioning costs associated with the retirement of an energy center, as well as the ability to earn a return on that remaining investment and those decommissioning costs; the impact of current environmental laws or their interpretation and new, more stringent, or changing requirements and environmental policies, including those related to NSR provisions of the Clean Air Act, carbon dioxide, nitrogen oxides, sulfur dioxide, and other emissions and discharges, Illinois emission standards, cooling water intake structures, coal combustion residuals, energy efficiency, and wildlife protection, that could limit, terminate or otherwise modify the operation of certain of Ameren Missouri's energy centers, increase our operating costs or investment requirements, result in an impairment of our assets, cause us to sell our assets, reduce our customers' demand for electricity or natural gas, or otherwise have a negative financial effect; the impact of complying with renewable energy standards in Missouri and Illinois and with the zero emission standard in Illinois; the effectiveness of Ameren Missouri's customer energy-efficiency programs and the related revenues and performance incentives earned under its Missouri Energy Efficiency Investment Act programs; labor disputes, the impact of collective bargaining unit contract negotiations, workforce reductions, our ability to attract and retain professional and skilled-craft employees, changes in future wage and employee benefits costs, including those resulting from changes in discount rates, mortality tables, medical cost trend rates, returns on benefit plan assets, and other assumptions; the impact of negative opinions of us or our utility services that our customers, investors, legislators, regulators, creditors, rating agencies, or other stakeholders may have or develop, which could result from a variety of factors, including failures in system reliability, failure to implement our investment plans or disagreement with those plans, failure to protect sensitive customer information, increases in rates, new data centers entering our service territories, negative media coverage, or concerns about company policies or practices; the impact of adopting new accounting and reporting guidance; the effects of strategic initiatives, including mergers, acquisitions, joint ventures, divestitures, and reorganizations; legal and administrative proceedings; pandemics or other significant global health events, and their impacts on our results of operations, financial position, and liquidity; and the impacts of global conflicts and related sanctions imposed by the United States and other governments, including potential impacts on the cost and availability of fuel, natural gas, enriched uranium, and other commodities, materials, and services. New factors emerge from time to time, and it is not possible for us to predict all of such factors, nor can we assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained or implied in any forward-looking statement. Given these uncertainties, undue reliance should not be placed on these forward-looking statements. Except to the extent required by the federal securities laws, we undertake no obligation to update or revise publicly any forward-looking statements to reflect new information or future events.
AMEREN CORPORATION (AEE)
CONSOLIDATED STATEMENT OF INCOME
(Unaudited, in millions, except per share amounts)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Operating Revenues:
Electric
$ 1,887
$ 2,038
$ 3,548
$ 3,660
Natural gas
205
183
720
658
Total operating revenues
2,092
2,221
4,268
4,318
Operating Expenses:
Fuel and purchased power
507
794
940
1,296
Natural gas purchased for resale
39
39
210
208
Other operations and maintenance
521
460
1,012
945
Depreciation and amortization
420
386
818
753
Taxes other than income taxes
146
131
297
275
Total operating expenses
1,633
1,810
3,277
3,477
Operating Income
459
411
991
841
Other Income, Net
118
96
208
181
Interest Charges
209
187
413
362
Income Before Income Taxes
368
320
786
660
Income Taxes
52
43
112
93
Net Income
316
277
674
567
Less: Net Income Attributable to Noncontrolling Interests
2
2
3
3
Net Income Attributable to Ameren Common Shareholders
$ 314
$ 275
$ 671
$ 564
Earnings per Common Share - Basic
$ 1.14
$ 1.02
$ 2.43
$ 2.09
Earnings per Common Share – Diluted
$ 1.13
$ 1.01
$ 2.41
$ 2.08
Weighted-average Common Shares Outstanding – Basic
276.8
270.3
276.6
270.1
Weighted-average Common Shares Outstanding – Diluted
278.7
271.6
278.6
271.5
AMEREN CORPORATION (AEE)
CONSOLIDATED BALANCE SHEET
(Unaudited, in millions)
June 30,
2026
December 31,
2025
ASSETS
Current Assets:
Cash and cash equivalents
$ 12
$ 13
Accounts receivable - trade (less allowance for doubtful accounts)
600
665
Unbilled revenue
478
415
Miscellaneous accounts receivable
199
107
Inventories
800
774
Current regulatory assets
337
387
Other current assets
218
210
Total current assets
2,644
2,571
Property, Plant, and Equipment, Net
41,372
39,313
Investments and Other Assets:
Nuclear decommissioning trust fund
1,631
1,526
Goodwill
411
411
Regulatory assets
2,888
2,524
Pension and other postretirement benefits
973
977
Other assets
1,297
1,154
Total investments and other assets
7,200
6,592
TOTAL ASSETS
$ 51,216
$ 48,476
LIABILITIES AND EQUITY
Current Liabilities:
Current maturities of long-term debt
$ 1,524
$ 973
Short-term debt
1,220
643
Accounts and wages payable
998
1,254
Interest accrued
246
229
Customer deposits
248
238
Other current liabilities
742
570
Total current liabilities
4,978
3,907
Long-term Debt, Net
19,064
18,214
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes and tax credits, net
5,381
5,181
Regulatory liabilities
6,437
6,255
Asset retirement obligations
873
849
Other deferred credits and liabilities
667
540
Total deferred credits and other liabilities
13,358
12,825
Shareholders' Equity:
Common stock
3
3
Other paid-in capital, principally premium on common stock
8,132
8,106
Retained earnings
5,549
5,292
Accumulated other comprehensive income
3
—
Total shareholders' equity
13,687
13,401
Noncontrolling Interests
129
129
Total equity
13,816
13,530
TOTAL LIABILITIES AND EQUITY
$ 51,216
$ 48,476
AMEREN CORPORATION (AEE)
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited, in millions)
Six Months Ended June 30,
2026
2025
Cash Flows From Operating Activities:
Net income
$ 674
$ 567
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
841
793
Amortization of nuclear fuel
43
20
Amortization of debt issuance costs and premium/discounts
10
10
Deferred income taxes and tax credits, net
127
172
Allowance for equity funds used during construction
(69)
(39)
Stock-based compensation costs
16
14
Other
(13)
10
Changes in assets and liabilities
(438)
(254)
Net cash provided by operating activities
1,191
1,293
Cash Flows From Investing Activities:
Capital expenditures
(2,653)
(2,130)
Nuclear fuel expenditures
(23)
(19)
Purchases of securities – nuclear decommissioning trust fund
(168)
(244)
Sales and maturities of securities – nuclear decommissioning trust fund
158
223
Other
(20)
59
Net cash used in investing activities
(2,706)
(2,111)
Cash Flows From Financing Activities:
Dividends on common stock
(414)
(384)
Dividends paid to noncontrolling interest holders
(3)
(3)
Short-term debt, net
577
(2)
Maturities and extinguishment of long-term debt
(378)
(324)
Issuances of long-term debt
1,794
1,599
Issuances of common stock
22
25
Employee payroll taxes related to stock-based compensation
(14)
(13)
Debt issuance costs
(19)
(14)
Net cash provided by financing activities
1,565
884
Net change in cash, cash equivalents, and restricted cash
50
66
Cash, cash equivalents, and restricted cash at beginning of year(a)
420
328
Cash, cash equivalents, and restricted cash at end of period(b)
$ 470
$ 394
(a) Includes $13 million of cash and cash equivalents and $407 million of restricted cash as of December 31, 2025.
(b) Includes $12 million of cash and cash equivalents and $458 million of restricted cash as of June 30, 2026.
AMEREN CORPORATION (AEE)
OPERATING STATISTICS
Three Months Ended
Six Months Ended
June 30,
June 30,
2026
2025
2026
2025
Electric Sales - kilowatthours (in millions):
Ameren Missouri
Residential
2,816
2,812
6,412
6,676
Commercial
3,456
3,349
6,822
6,716
Industrial
1,074
1,037
2,028
1,996
Street lighting and public authority
12
13
28
30
Ameren Missouri retail load subtotal
7,358
7,211
15,290
15,418
Off-system
1,191
662
2,290
1,876
Ameren Missouri total
8,549
7,873
17,580
17,294
Ameren Illinois Electric Distribution
Residential
2,399
2,435
5,204
5,408
Commercial
2,741
2,758
5,451
5,578
Industrial
2,429
2,511
4,835
5,002
Street lighting and public authority
92
95
192
198
Ameren Illinois Electric Distribution total
7,661
7,799
15,682
16,186
Ameren Total
16,210
15,672
33,262
33,480
Electric Revenues (in millions):
Ameren Missouri
Residential
$ 426
$ 405
$ 825
$ 781
Commercial
381
344
683
617
Industrial
94
84
166
150
Other, including street lighting and public authority
45
11
81
9
Ameren Missouri retail load subtotal
$ 946
$ 844
$ 1,755
$ 1,557
Off-system sales and capacity
148
471
190
651
Ameren Missouri total
$ 1,094
$ 1,315
$ 1,945
$ 2,208
Ameren Illinois Electric Distribution
Residential
$ 350
$ 321
$ 699
$ 663
Commercial
198
181
393
361
Industrial
52
48
107
98
Other, including street lighting and public authority
29
23
73
23
Ameren Illinois Electric Distribution total
$ 629
$ 573
$ 1,272
$ 1,145
Ameren Transmission
Ameren Illinois Transmission(a)
$ 168
$ 152
$ 332
$ 306
ATXI
62
56
125
113
Eliminate affiliate revenues
(1)
—
(1)
(1)
Ameren Transmission total
$ 229
$ 208
$ 456
$ 418
Other and intersegment eliminations(a)
(65)
(58)
(125)
(111)
Ameren Total
$ 1,887
$ 2,038
$ 3,548
$ 3,660
(a)
Includes $45 million, $40 million, $89 million and $77 million, respectively, of electric operating revenues from transmission services provided to the Ameren Illinois Electric Distribution segment.
SummaryCompaniesAmeren projects winter 2032 capacity shortfall of about 1,500 MW after plant startupShortfall grows to about 2,300 MW in 2033, Ameren estimatesRegulatory process starts with August 20 prehearing conference before Missouri Public Service CommissionJuly 30 (Reuters) - Ameren's planned mega gas plant for the Midwest will still leave the utility short of the power and reserves needed to meet surging data center demand, the company's own analysis showed ahead of a key approval process next month.
The projected shortfall highlights mounting strain on U.S. power grids as data center demand grows faster than the generation and transmission capacity needed to support it.
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St. Louis-based Ameren's urgency for the project is acute after signing contracts this year to provide electricity to data centers in development by Amazon (AMZN.O), opens new tab and Alphabet's Google (GOOGL.O), opens new tab in rural Missouri.
Ameren (AEE.N), opens new tab says the 2,100-megawatt West Alton Energy Center is necessary, but would not fully restore the reserve cushion needed to meet projected demand. The project is planned for a site next to a coal plant on the banks of the Mississippi River about 28 miles (45 km) northwest of St. Louis.
"The company's resource capacity still falls well short of the total demand" and planned reserve margin, Ameren Director of Corporate Analysis Matt Michels said in July 24 testimony filed with the Missouri Public Service Commission.
An August 20 prehearing conference will kick off the regulatory process for Ameren to obtain approval to construct the power plant.
Ameren estimates the plant would come online in late 2031. But Ameren's capacity shortfall in the winter of 2032, for example, would equal about 1,500 MW and grow to about 2,300 MW the following year, Michels said in his testimony.
Ameren executives say the utility also will build capacity by enhancing existing power sources, developing solar and battery energy storage sites and purchasing power from the regional grid.
Ameren's service area falls within the Midcontinent ISO, which manages the flow of electricity for a territory that includes all or part of 15 U.S. states in the Midwest and South.
The total return on Ameren's stock over the past 12 months is 12.7%, outpacing the 8.4% for the S&P 500 Utilities Sector (.SPLRCU), opens new tab, as investors anticipate strong earnings growth over the next decade.
"Ameren anticipates more than $70 billion of additional investment opportunities over the next 10 years, providing a long runway of growth," Morningstar analyst Andrew Bischof wrote this week in a research note.
"The most attractive opportunities are supporting data center development in Illinois and Missouri, new generation in Missouri, modernizing the grid in Illinois and Missouri, and transmission expansion across the Midcontinent electric grid," Bischof said.
Reporting By Tim McLaughlin; editing by Timothy Gardner and Bill Berkrot
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Analysts on Wall Street project that Ameren (AEE - Free Report) will announce quarterly earnings of $1.08 per share in its forthcoming report, representing an increase of 6.9% year over year. Revenues are projected to reach $2.4 billion, increasing 8.3% from the same quarter last year.
The current level reflects an upward revision of 2.7% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
In light of this perspective, let's dive into the average estimates of certain Ameren metrics that are commonly tracked and forecasted by Wall Street analysts.
Analysts expect 'External revenues- Ameren Illinois Natural Gas' to come in at $168.47 million. The estimate suggests a change of +6.6% year over year.
Analysts' assessment points toward 'Gas Revenues- Ameren Illinois Natural Gas' reaching $168.47 million. The estimate suggests a change of +6.6% year over year.
The combined assessment of analysts suggests that 'Electric Revenues- Ameren Illinois Electric Distribution- Total' will likely reach $585.68 million. The estimate indicates a change of +2.2% from the prior-year quarter.
Analysts forecast 'Electric Revenues- Ameren Missouri- Total' to reach $1.44 billion. The estimate indicates a change of +9.4% from the prior-year quarter.
The consensus estimate for 'Operating Income- Ameren Missouri' stands at $254.82 million. Compared to the current estimate, the company reported $181.00 million in the same quarter of the previous year.
View all Key Company Metrics for Ameren here>>>
Over the past month, Ameren shares have recorded returns of -0.5% versus the Zacks S&P 500 composite's +1.9% change. Based on its Zacks Rank #2 (Buy), AEE will likely outperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Key Takeaways Ameren is expected to post Q2 EPS growth, supported by grid investments, new rates and higher power demand.AEE's smart grid upgrades and AI-driven data center demand likely supported quarterly performance.AEE faces near-term storm restoration costs ahead of Q2 results, though recovery mechanisms are in place. Ameren Corporation (AEE - Free Report) is scheduled to release second-quarter 2026 results on July 30, after market close. The company delivered an earnings surprise of 9.4% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors Likely to Have Impacted AEE’s Q2 PerformanceAmeren is expected to have continued benefiting from its ongoing investments in grid modernization and infrastructure resilience, which likely improved the efficiency and reliability of its electric network across its service territories. The company's deployment of smart switches under its Smart Energy Plan is helping automate grid operations, reduce outage durations, and enhance overall system performance. These initiatives are expected to have supported operational execution and contributed positively to the company's financial performance in the to-be-reported quarter.
Increasing electricity demand from data centers, driven by Artificial Intelligence workloads, is expected to have provided additional support to the company’s quarterly earnings. Strong rate-based growth and solid revenue expectations are likely to have enhanced the overall performance.
The company’s quarterly earnings are anticipated to have benefited from new electric service rates that came into effect during the previous quarters.
The severe storms that swept across Ameren’s service territories during the second quarter temporarily disrupted the company’s operations, causing widespread damage to its electric distribution system. The storms resulted in customer outages and required a large-scale restoration effort. While utilities like Ameren generally recover storm restoration costs through regulatory mechanisms over time, such events can still increase near-term operating and maintenance expenses, require higher capital spending to repair or replace damaged infrastructure, and put pressure on earnings.
AEE’s Q2 ExpectationsThe Zacks Consensus Estimate for earnings is pegged at $1.08 per share, implying 6.9% growth year over year.
The consensus estimate for revenues is pinned at $2.40 billion, implying 8.3% growth year over year.
The Zacks Consensus Estimate for Ameren’s total electric sales is pinned at 15,995.6 gigawatt-hours (in millions), implying 2.1% growth from the year-ago quarter’s registered figure.
What Our Quantitative Model PredictsOur proven model predicts an earnings beat for Ameren this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here as you can see below.
Other Stocks to ConsiderInvestors may also consider the following players from the same industry, as these, too, have the right combination of elements to post an earnings beat this reporting cycle.
Edison International (EIX - Free Report) is likely to come up with an earnings beat when it reports second-quarter results on July 30. It has an Earnings ESP of +4.66% and a Zacks Rank of 2 at present.
EIX’s long-term (three to five years) earnings growth rate is 2.1%. The Zacks Consensus Estimate for earnings is pinned at $1.02 per share, which implies a year-over-year increase of 5.2%.
The Southern Company (SO - Free Report) is likely to come up with an earnings beat when it reports second-quarter results on July 30. It has an Earnings ESP of +1.16% and a Zacks Rank of 3 at present.
SO’s long-term earnings growth rate is 4.3%. The Zacks Consensus Estimate for earnings is pinned at $1.01 per share, which implies a year-over-year increase of 11%.
Vistra (VST - Free Report) is likely to come up with an earnings beat when it reports second-quarter results on Aug. 7. It has an Earnings ESP of +19.75% and a Zacks Rank of 1 at present.
The Zacks Consensus Estimate for VST’s earnings is pinned at $2.41 per share, which implies a year-over-year increase of 138.6%. The consensus estimate for sales implies a year-over-year increase of 50.1%.
Dimensional Fund Advisors LP boosted its holdings in shares of Ameren Corporation (NYSE:AEE – Free Report) by 2.9% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 1,151,324 shares of the utilities provider’s stock after purchasing an additional 32,982 shares during the quarter. Dimensional Fund Advisors LP owned approximately 0.42% of Ameren worth $126,552,000 at the end of the most recent reporting period.
Several other institutional investors also recently bought and sold shares of AEE. Parallel Advisors LLC grew its position in shares of Ameren by 1.6% in the first quarter. Parallel Advisors LLC now owns 5,746 shares of the utilities provider’s stock valued at $632,000 after purchasing an additional 93 shares during the period. KBC Group NV raised its position in shares of Ameren by 18.4% during the 1st quarter. KBC Group NV now owns 34,495 shares of the utilities provider’s stock worth $3,792,000 after purchasing an additional 5,356 shares during the last quarter. Swiss National Bank lifted its stake in Ameren by 7.1% in the 1st quarter. Swiss National Bank now owns 793,800 shares of the utilities provider’s stock valued at $87,254,000 after buying an additional 52,700 shares in the last quarter. Bartlett & CO. Wealth Management LLC lifted its stake in Ameren by 32.4% in the 1st quarter. Bartlett & CO. Wealth Management LLC now owns 1,752 shares of the utilities provider’s stock valued at $197,000 after buying an additional 429 shares in the last quarter. Finally, Heartland Bank & Trust Co boosted its holdings in Ameren by 3.4% in the 1st quarter. Heartland Bank & Trust Co now owns 6,233 shares of the utilities provider’s stock worth $685,000 after buying an additional 205 shares during the last quarter. 79.09% of the stock is owned by institutional investors and hedge funds.
Ameren Stock Down 1.4% Shares of AEE opened at $112.15 on Tuesday. Ameren Corporation has a 52-week low of $96.57 and a 52-week high of $118.32. The company has a quick ratio of 0.44, a current ratio of 0.62 and a debt-to-equity ratio of 1.39. The stock has a fifty day simple moving average of $110.92 and a two-hundred day simple moving average of $109.37. The company has a market capitalization of $31.04 billion, a PE ratio of 20.17, a price-to-earnings-growth ratio of 2.75 and a beta of 0.47.
Ameren (NYSE:AEE – Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The utilities provider reported $1.28 earnings per share for the quarter, beating the consensus estimate of $1.17 by $0.11. Ameren had a net margin of 17.17% and a return on equity of 10.94%. The firm had revenue of $2.18 billion for the quarter, compared to analysts’ expectations of $2.24 billion. During the same quarter in the previous year, the company posted $1.07 EPS. The company’s revenue was up 3.8% compared to the same quarter last year. Ameren has set its FY 2026 guidance at 5.250-5.450 EPS. As a group, equities analysts forecast that Ameren Corporation will post 5.39 EPS for the current year.
Ameren Dividend Announcement The company also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 9th were issued a dividend of $0.75 per share. The ex-dividend date was Tuesday, June 9th. This represents a $3.00 dividend on an annualized basis and a dividend yield of 2.7%. Ameren’s dividend payout ratio (DPR) is currently 53.96%.
Analyst Upgrades and Downgrades A number of brokerages have commented on AEE. KeyCorp raised Ameren from a “sector weight” rating to an “overweight” rating and set a $122.00 target price for the company in a report on Thursday. BTIG Research set a $126.00 price objective on Ameren in a research note on Thursday. Wall Street Zen upgraded Ameren from a “sell” rating to a “hold” rating in a report on Saturday. Barclays lifted their target price on shares of Ameren from $116.00 to $117.00 and gave the stock an “equal weight” rating in a research note on Thursday, July 9th. Finally, Wells Fargo & Company reaffirmed an “overweight” rating and set a $120.00 target price on shares of Ameren in a report on Tuesday, April 21st. Ten equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $121.50.
Read Our Latest Research Report on AEE
Insider Activity at Ameren In other news, SVP Theresa A. Shaw sold 325 shares of Ameren stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $109.08, for a total transaction of $35,451.00. Following the sale, the senior vice president owned 32,618 shares of the company’s stock, valued at approximately $3,557,971.44. The trade was a 0.99% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.29% of the company’s stock.
Ameren Company Profile (Free Report)
Ameren Corporation (NYSE: AEE) is an integrated energy company headquartered in St. Louis, Missouri, that provides electric and natural gas delivery and related services in portions of Missouri and Illinois. The company operates regulated utility businesses that serve a broad mix of residential, commercial and industrial customers, and it participates in wholesale energy markets and transmission operations that support reliable service across its service territories.
Ameren’s core activities include generation, transmission and distribution of electricity, distribution of natural gas, and the provision of customer energy solutions such as demand-side management and energy efficiency programs.
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Key Takeaways Ameren's 2026 and 2027 earnings estimates rose, with long-term EPS growth pegged at 7.68%.AEE leads PPL in ROE, net margin and six-month share performance, despite carrying slightly more debt.Ameren plans to invest $31.8 billion through 2030, compared with PPL's $23 billion through 2029. The Zacks Utility -Electric Power industry presents an attractive long-term investment opportunity, supported by its capital-intensive, domestically focused and highly regulated business model. These characteristics provide strong revenue visibility, earnings stability and a favorable backdrop for continued infrastructure investment. Utilities are consistently modernizing power grids, improving system reliability and investing heavily in rate-base growth projects. Because regulators generally allow utilities to recover eligible investments through customer rates, the sector benefits from relatively stable and predictable cash flows.
At the same time, utilities are accelerating the transition toward cleaner energy as demand for reliable, 24/7 power increases, driven by AI data centers, industrial reshoring, electric vehicles and the growing adoption of electric heating. Companies are retiring aging fossil-fuel generation, expanding renewable capacity and deploying lower-emission technologies while maintaining grid reliability. Supported by solid capital-return programs, utilities remain appealing to income-focused investors and are well positioned to generate sustainable long-term value amid the ongoing decarbonization of the energy sector.
Against this backdrop, let us compare PPL Corporation (PPL - Free Report) and Ameren Corporation (AEE - Free Report) , two prominent regulated electric utilities with operations across the Midwest and Eastern United States.
Ameren Corporation is a regulated electric and natural gas utility serving customers in Missouri and Illinois. The company benefits from stable cash flows and a consistent dividend track record, supported by a constructive regulatory environment and a well-defined long-term capital investment plan. Its focus on grid modernization and the clean energy transition, combined with disciplined financial management and a solid credit profile, positions Ameren as an attractive option for investors seeking a balance of stability, income and sustainable growth.
PPL Corporation is a fully regulated utility focused on modernizing its infrastructure and advancing its clean energy initiatives while delivering stable cash flows and reliable dividends. Its regulated operations provide predictable revenue streams, supporting financial stability and consistent shareholder returns. Backed by a strong balance sheet and favorable regulatory conditions, PPL continues to invest in grid upgrades, renewable energy and decarbonization efforts, positioning it for steady earnings growth and long-term value creation.
PPL Corporation and Ameren Corporation are both established utility players. Comparing their key fundamentals can help investors determine which stock offers the stronger investment opportunity.
PPL & AEE’s Earnings EstimatesThe Zacks Consensus Estimate for PPL’s earnings per share in 2026 has gone down 0.51% and the same for 2027 has remained unchanged in the past 60 days. Long-term (three to five years) earnings growth per share is pegged at 7.52%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AEE’s earnings per share in 2026 and 2027 has increased by 0.56% and 0.17%, respectively, in the past 60 days. Long-term (three to five years) earnings growth per share is pegged at 7.68%.
Image Source: Zacks Investment Research
Return on EquityReturn on Equity (“ROE”) is an essential financial indicator that evaluates a company’s efficiency in generating profits from the equity invested by its shareholders. It demonstrates how well management is utilizing the capital provided to increase earnings and deliver value.
PPL’s current ROE is 9.41% compared with AEE’s 10.94%. The industry’s current ROE is 11.21%.
Image Source: Zacks Investment Research
Net Profit MarginNet profit margin measures how efficiently a company converts revenues into profit after all expenses, offering insight into its overall profitability and financial health.
Ameren Corporation's net margin is 16.19X compared with PPL's 14.8X.
Image Source: Zacks Investment Research
Debt to CapitalThe Zacks Utilities sector is a capital-intensive one and huge investments are required at regular intervals to upgrade, maintain and expand operations. The usage of new evolving technology also requires investments. So, the utilities borrow from the market and add it to their internal cash generation to fund long-term investments.
PPL’s debt-to-capital currently stands at 57.4% compared with AEE’s 59.53%. Both companies are utilizing lower debt than their peers, as the industry’s debt-to-capital currently stands at 60.71%.
ValuationPPL Corporation currently appears to be a tad cheaper compared with Ameren Corporation on a Price/Earnings Forward 12-month basis. (P/E- F12M).
AEE is currently trading at 20.27X, while PPL is trading at 17.79X. Both companies are trading at a premium compared with the industry’s 15.66X.
Image Source: Zacks Investment Research
Long-Term Expenditure PlansCapital investment is crucial for the utility sector, supporting infrastructure upgrades, dependable operations and long-term growth. To meet rising demand, increase renewable energy integration and comply with evolving regulatory requirements, utilities must continually invest in generation assets as well as their transmission and distribution networks.
PPL Corporation plans to invest nearly $23 billion in the 2026-2029 period to strengthen its infrastructure and add more clean electricity generation assets. Ameren Corporation plans to invest $31.8 billion in the 2026-2030 period to strengthen its electric transmission, distribution and generation infrastructure.
Price PerformanceIn the past six months, AEE’s shares have gained 9.4% against PPL’s decline of 1.4%.
Price Performance (Six Months)
Image Source: Zacks Investment Research
Rounding UpPPL and AEE are consistently investing in their infrastructure to enhance reliability and support the needs of their growing customer base.
From the analysis above, Ameren Corporation appears to hold an edge over PPL Corporation, even with its premium valuation. AEE’s positive earnings estimate movement, higher ROE, larger capital expenditure program, better net margin and stronger share price performance make it a more appealing investment at this time.
Ameren Corporation currently has a Zacks Rank #2 (Buy) and PPL Corporation currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.