Should Rising Institutional Control and Insider Sales at Avista (AVA) Require Investor Action?

• Avista Corporation recently saw significant changes in shareholder activity, with institutional investors now controlling 87% of the company and insiders selling shares.
• This concentration of ownership means that a small group of large investors holds outsized influence over Avista’s direction and market sentiment.
• With institutional control and insider sales in focus, we’ll explore how these ownership trends shape Avista’s investment narrative and outlook.

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Avista Investment Narrative Recap

Being an Avista shareholder often means believing in the long-term value of regulated utility assets, reliable dividend income, and steady earnings growth through infrastructure investments and regulatory outcomes. While recent news of increased institutional control and insider share sales may draw headlines, these developments do not significantly impact the near-term outlook compared to major fundamental risks such as power supply costs or rate case outcomes.

The company’s recent update on the Washington general rate case, which raised the allowed return on equity to 9.8 percent, remains the most relevant announcement. This decision has potential implications for strengthening Avista’s earnings and supporting future shareholder returns, aligning with previously stated growth catalysts.

Yet, in contrast to the headlines around ownership shifts, investors should be aware that utility earnings can still be vulnerable to...

Read the full narrative on Avista (it's free!)

Avista's narrative projects $2.0 billion in revenue and $236.0 million in earnings by 2028. This requires 1.1% yearly revenue growth and a $56.0 million earnings increase from the current $180.0 million.

Uncover how Avista's forecasts yield a $41.83 fair value, a 11% upside to its current price.

Exploring Other Perspectives

Three unique fair value opinions from the Simply Wall St Community range from US$0.02 up to US$41.83 per share. While shareholder views span wide extremes, ongoing risks from rising power supply costs could play a significant role in the company’s forward performance, so it makes sense to explore several viewpoints.

Explore 3 other fair value estimates on Avista - why the stock might be worth as much as 11% more than the current price!

Build Your Own Avista Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Avista research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Avista research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Avista's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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