In a notable shift for investors, Wells Fargo has assigned a new rating of “Underweight” to IDACORP, Inc. (NYSE: IDA), with a price target set at $118. This rating change, effective January 20, 2026, could indicate a cautious outlook for the company’s short-term performance, suggesting that investors may need to reassess their positions amid potential volatility.
Market / Price Action
IDACORP’s stock has experienced notable fluctuations in recent trading sessions, reflecting a mixed sentiment from the investor community. As of the latest update, the stock is priced at $133.07, showing a decline of 1.54 points, or approximately 1.14%, over the day. Investors have traded an average volume of 535,212 shares, comfortably above the three-month average of 416,990 shares. The stock recently approached its 52-week high of $136.66 but remains significantly above its 52-week low of $24.05, showcasing a remarkable recovery and ongoing interest in utility stocks. IDACORP’s relatively low beta of 0.608 indicates that the stock is less volatile than the broader market, a trait typically appealing to more conservative investors.
Short- and Long-Term Performance
Examining IDACORP’s performance metrics, the stock shows a commendable 24.39% increase over the past year, signifying resilience amidst market fluctuations. However, the more recent quarterly performance has turned slightly negative, recording a dip of 2.05%. In the past 30 days, IDACORP’s shares have appreciated by 5.54%, highlighting a potential recovery phase. The weekly volatility stands at 1.53%, while monthly volatility aligns closely at 1.52%, indicating relatively stable trading conditions. These performance trends, both positive and negative, highlight an ongoing adaptation in investor sentiment toward IDACORP.
Earnings / Financials
IDACORP’s latest earnings report presents a positive surprise, with the company reporting earnings per share (EPS) of $2.26, surpassing analysts’ expectations of $2.23. This represents a notable surprise factor of approximately 1.35%. For comparison, the previous quarter’s EPS was in line with expectations, reporting at $1.76. The strong performance in the most recent quarter is a positive indicator of the company’s operational efficiency and financial health, which may influence future analyst evaluations and sentiments.
Analyst / Consensus View
Analysts’ opinions on IDACORP are mixed, with a total of six ratings reflecting a cautious but varied outlook. Currently, the consensus includes three “Buy” ratings, two “Hold” ratings, and one “Sell” rating. The average price target stands at $134.83, with a high target of $144 and a low of $118, indicating a somewhat optimistic view amongst some analysts despite Wells Fargo’s recent downgrade. This variance in ratings suggests that while some analysts see potential upside, others are cautious about the immediate challenges facing the company.
Stock Grading or Fundamental View
IDACORP has received a Stocks Telegraph Grade of 55, indicating a moderate investment profile based on its overall financial and market health. This score reflects a blend of stable fundamentals and a strategic position in the utility sector. However, the recent downgrade to “Underweight” implies that IDACORP may face short-term headwinds that could hinder its growth trajectory, warranting close attention from investors.
Conclusion
In summary, IDACORP (NYSE: IDA) is showing mixed signals as it navigates recent market challenges. With its strong annual performance and moderate EPS surprise, the company may still appeal to long-term growth investors. However, the recent “Underweight” rating from Wells Fargo suggests caution is warranted, particularly for those looking for near-term gains. Potential investors should consider their risk tolerance and market conditions before making investment decisions, as IDACORP could remain volatile in the near future. Overall, while the stock supports a defensive investment strategy, emerging risks from regulatory changes or economic shifts should not be overlooked. As always, continued monitoring of performance metrics and analyst ratings will be crucial in evaluating IDACORP’s investment landscape.