Why is Algonquin (AQN) stock gaining investors' attention in Canada?

3 min read | November 02, 2021 02:49 AM AEDT | By Raza Naqvi

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Why is Algonquin (AQN) stock gaining investors' attention in Canada? — Image source: © Solarseven | Megapixl.com

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Highlights

On October 26, the Investment Industry Regulatory Organization of Canada (IIROC) had halted trading of the AQN stock.

The IIROC sometimes halts the trading of stock to ensure that the market is orderly and fair.

On November 1, AQN stock surfaced on the trending charts in Canada.

Stocks of Algonquin Power & Utilities Corp. (TSX:AQN) gained investors' attention before the market open on Monday, November 1, as the utilities company's name surfaced on the trending charts in Canada.

At the start of the trading session, AQN stock jumped 0.3 per cent and was trading at C$ 17.9 per share, at the time of writing.

Although there was no specific news from the company, the interest in this particular stock could be due to IIROC's recent move of announcing trade resumption for the AQN stock.

On October 27, the Investment Industry Regulatory Organization of Canada (IIROC) that it was resuming trading services for the AQN stock which had been suspended on Tuesday, October 26.

The IIROC sometimes halts the trading of stock to ensure that the market is orderly and fair. Established in 2008, the IIROC is a self-regulatory organization and oversees trading activities in the Canadian equities market.

Algonquin Power & Utilities Corp. (TSX:AQN) worth exploring?

It is one of the leading renewable energy and regulated utility companies in North America and has over US$ 16 billion in assets. As Canada is dedicated to fighting climate change and achieving net-zero emissions by 2050, companies like Algonquin could benefit in future as they focus on renewable energy.

Should you invest in the Algonquin (AQN) stock?

One major reason behind investors' attention is the latest announcement from the company that it is purchasing Kentucky Power Company for US$ 1.5 billion to fund more clean energy projects.

The company has agreed with American Electric Power (NASDAQ:AEP) to acquire the company. AEP has set a goal for renewables to account for 50 per cent of its generating capacity and cut carbon emissions by 2030.

Also Read: Top 5 Canadian utility stocks to buy now

In the second quarter of 2021, Algonquin also achieve full commercial operations at its Altavista Solar facility. This was the company’s sixth solar-powered electricity generating unit and is expected to generate 174 GW of energy per year.

Bottom line

Algonquin Power is backed by strong fundamentals as its revenue increased by 54 per cent year-over-year (YoY) to US$ 527.5 in the second quarter of this year.

The adjusted net earnings of the utility company were up from US$ 47.3 million in Q2 2020 to US$ 91.7 million in the second quarter ended June 30, 2021.

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