PPL Corp enters forward contracts to sell $984 million in common stock

PPL Corporation (NYSE:PPL), currently trading near its 52-week high of $36.99 with a market capitalization of $27.25 billion, disclosed Monday that it entered into forward contracts to sell a total of approximately 27.4 million shares of its common stock at a blended initial forward price of about $35.90 per share. According to InvestingPro data, the stock has demonstrated strong performance with a 13.58% return year-to-date. The expected net proceeds from these transactions, assuming physical settlement, are approximately $984 million before adjustments for interest rates, stock loan fees, and expected dividends.

The forward contracts were executed through PPL’s at-the-market (ATM) equity distribution program, which was established in February 2025. The contracts, each valued at around $500 million, require settlement on or before December 30, 2026, and August 11, 2027, respectively. PPL has maintained a strong track record of dividend payments for 55 consecutive years, showcasing its financial stability. For deeper insights into PPL’s financial health and additional ProTips, explore the comprehensive research available on InvestingPro.

These new transactions are in addition to previously announced forward contracts for approximately $400 million in PPL common stock under the ATM program, which must be settled by December 30, 2025. Since February 2025, PPL has entered into forward contracts totaling about $1.4 billion in common stock, with settlements extending through August 2027. Analysts maintain a positive outlook on the stock, with price targets ranging from $34 to $42.

According to the company’s statement in the SEC filing, PPL may choose to physically settle, net share settle, or net cash settle the forward contracts. The forward contracts under the ATM program are classified as equity transactions.

PPL Corporation’s disclosure is based on a press release statement included in its Form 8-K filing with the Securities and Exchange Commission.

In other recent news, PPL Corporation announced its financial results for the second quarter of 2025. The company reported earnings per share (EPS) of $0.32, which did not meet the analysts’ forecast of $0.38, resulting in a 15.79% negative surprise. Despite this, PPL Corporation exceeded revenue expectations, reporting $2.03 billion compared to the anticipated $1.99 billion, a 2.01% positive variance. These figures highlight the mixed performance in terms of earnings and revenue for the quarter. The stock’s performance following the announcement was not favorable, though specific price movements are not detailed here. No mergers or acquisitions were reported during this period. Analyst reactions to these results have not been specified, but such financial outcomes often prompt re-evaluations of stock ratings. Investors may find these recent developments significant as they consider their positions.

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