Momentum Stock Watch: Pattern Energy Group Inc. (PEGI)

Company Profile:

Pattern Energy Group Inc. operates as an integrated renewable energy company. The company operates in two segments, Operating Business and Development Business. The Operating Business segment holds interest in 24 renewable energy projects with an operating capacity that totals approximately 4 gigawatts located in the United States, Canada, and Japan. The Development Business segment develops and sells renewable energy projects focusing on wind, solar, storage, and transmission primarily in the United States, Canada, Japan,and Mexico. Pattern Energy Group Inc. sells electricity and renewable energy credits primarily to local utilities and local liquid independent system organizations markets. The company was founded in 2012 and is headquartered in San Francisco, California.

Recent News:

On Oct. 11, 2019, the company announced agreements to acquire ownership interests in two operating wind power facilities, the Henvey Inlet Wind facility in Ontario and the Grady Wind facility in New Mexico. The Company has also entered into an agreement for a $260 million private placement of perpetual preferred stock.

Pattern Energy declared a dividend for the third quarter 2019, payable on October 31, 2019, to holders of record on September 27, 2019 in the amount of $0.4220 per Class A common share, which represents $1.688 on an annualized basis.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

PEGI’s strengths can be seen in its strong solvency and robust efficiency compared with its peers. Its revenue has increased over recently several years. Technical indicators signal the bullish signs, as there is a bullish crossover in Stochastic oscillator, MACD is trying to cross back up and the RSI stands at 51.33 with positive bias. We rate Pattern Energy Group Inc. (PEGI) a STRONG BUY.