Alliant Energy Corporation (LNT) Buy or Sell Stock Guide

Last updated: May 12, '19

Are you looking for the analysis of Alliant Energy Corporation (LNT) stock? Are you wondering what the bulls and the bears say about it?

If so, you came to the right place. In this stock guide, we will share with you 5 reasons to buy and 7 reasons to sell LNT stock. You’ll get a perspective on what the bulls and the bears say about it.

The analysis below may be also helpful to you if you have any of the following questions about LNT stock:

  • Is LNT a buy or a sell?
  • Should I sell or hold LNT stock today?
  • Is LNT a good buy / investment?
  • What are LNT analyst opinions, recommendations and ratings?

Let’s start with the bull case. Here are the reasons to buy LNT stock:

1. Alliant's earnings growth prospects are robust supported by two key generation projects, which have regulatory support.

2. Iowa's transmission cost rider adjusts rates to eliminate the regulatory lag resulting from new transmission investments between rate cases.

3. The company operates in constructive Iowa and Wisconsin, which supports returns and capital projects.

4. LNT profitability is improving. The YoY profit margin change was 2.33percentage points. See LNT profitability chart.

5. LNT forward dividend yield is 3.01%, higher than the industry (1.20%) and sector (1.02%) forward dividend yields. See LNT forward dividend chart.

Now that you understand the bull case, let’s look at the reasons to sell LNT stock (i.e., the bear case):

1. Alliant's aggressive investment plan increases regulatory risk.

2. Slow economic recovery in Alliant's major markets, Iowa and Wisconsin, could weigh on customer growth and increase regulatory risk.

3. As with all regulated utilities, rising interest rates will raise financing costs and could make the dividend less attractive for income investors.

4. LNT stock price ($47.18) is close to the 52-week high ($47.86). Perhaps now is a good time to sell? See LNT price chart.

5. LNT quarterly revenue growth was 2.00%, lower than the industry and sector average revenue growth (4.29% and 4.79%, respectively). See LNT revenue growth chart.

6. LNT average analyst price target ($46.78) is below its current price ($47.18). See LNT price target chart.

7. LNT short interest (days to cover the shorts) ratio is 5.82. The stock garners more short interest than the average industry, sector or S&P 500 stock. See LNT short interest ratio chart.

Now let's look at the key statistics for LNT:

Metrics LNT
Price $48.81
Average Price Target / Upside $46.78 / -4.17%
Average Analyst Rating Hold
Industry Utilities - Regulated Electric
Sector Utilities
Number of Employees 3,885
Market Cap $11.24B
Forward P/E Ratio 19.65
Price/Book Ratio 3.12
PEG 3.64
Revenue (TTM) $3.61B
YoY Quarterly Revenue Growth 7.7%
Profit Margin 14.32%

What are your thoughts on LNT?

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