Algonquin Power & Utilities (TSX:AQN)(NYSE:AQN) is an Oakville-based company that owns and operates a portfolio of regulated and non-regulated generation, distribution, and transmission utility assets. Shares of this green energy stock have plunged 50% in 2022 as of close on December 29. The stock has dropped 12% in the month-over-month period.
This stock encountered major turbulence after the release of Algonquin’s third quarter fiscal 2022 earnings on November 11. That said, the stock had suffered a steady decline since reaching a 52-week high in the first half of April.
In Q3 2022, the company delivered revenue growth of 26% to $666 million. Meanwhile, it posted adjusted net earnings of $73.5 million or $0.11 per share – down 25% or 27%, respectively, from the third quarter of fiscal 2021. On the other hand, adjusted EBITDA climbed 10% year-over-year to $276 million.
Arun Banskota, President and Chief Executive Officer (CEO) at Algonquin, conceded that the third quarter was a challenging one. The company battled higher interest rates, and the timing of tax incentives related to specific renewable energy projects. He warned that the macroeconomic environment could continue to provide a challenge in the near term, despite Algonquin’s long-term strength.
I’m looking to snatch up this undervalued renewable energy stock at the end of December. Its shares are trading in favourable value territory compared to its industry peers. This stock last had a Relative Strength Index (RSI) of 27, which puts Algonquin in technically oversold territory at the time of this writing. Better yet, it offers a quarterly dividend of $0.181 per share. That represents a monster 10% yield.
