10 Worst Performing Utility Stocks in 2024

7. Algonquin Power & Utilities (NYSE:AQN)  

YTD Performance as of October 15: -19.94%  

Market Cap as of October 15: $4.00 Billion  

Number of Hedge Fund Investors: 35

Algonquin Power & Utilities (NYSE:AQN) is a utility company serving over 1.2 million customers across the United States, Canada, and Chile. The company operates a portfolio of high-quality assets, including 13,517 miles of electric transmission lines, 8,482 miles of gas pipelines, and 6,941 miles of water mains.

On August 9, Algonquin Power & Utilities (NYSE:AQN) announced a definitive agreement to sell its renewable energy business, excluding hydro assets, to a wholly-owned subsidiary of LS Power for a total consideration of up to $2.5 billion. This sale is part of the company’s strategy to become a pure-play regulated utility and optimize its regulated business operations, aiming to create long-term value for both customers and shareholders.

Analysts view Algonquin Power & Utilities’ (NYSE:AQN) move as being on the right path, transforming into a traditional utility company with a stronger focus on regulated assets and cost reduction initiatives. The company’s new CEO is dedicated to cutting costs and improving profitability, with an emphasis on “capital-light growth” by enhancing regulatory coverage and conducting rate reviews. Industry analysts have reached a consensus Buy rating on the stock, with an average target price of $6, implying a potential upside of 16.80% from current levels.