Consolidated Edison (ED) Downgraded to Hold at Zacks Investment Research

Zacks Investment Research cut shares of Consolidated Edison (NYSE:ED) from a buy rating to a hold rating in a report issued on Friday.

According to Zacks, “Consolidated Edison has a favorable rate decisions history by regulatory authorities, which will likely encourage it to invest more in infrastructure improvements. It continues to follow a systematic capital investment plan for infrastructure development and the expansion of renewable assets. The company is also making notable progress in generating renewable energy. Moreover, the company outperformed the broader industry in past one year. However, the company faces interest rate risk owing to variable rate debt and to new debt financing, needed to fund capital requirements. It also faces commodity price risk related to the purchase and sale of its electricity, gas and related derivative instruments. The management believes that a 10% decline in market prices may result in a decline in fair value of $66 million for the derivative instruments used by the company to hedge purchases of electricity and gas.”

A number of other equities analysts have also weighed in on ED. Evercore ISI lowered Consolidated Edison from an in-line rating to an underperform rating and set a $74.00 target price for the company. in a research report on Tuesday, September 26th. JPMorgan Chase & Co. began coverage on Consolidated Edison in a research report on Friday, January 12th. They issued an underweight rating and a $78.00 target price for the company. ValuEngine raised Consolidated Edison from a hold rating to a buy rating in a research report on Sunday, December 31st. Guggenheim reissued a hold rating and issued a $88.00 target price on shares of Consolidated Edison in a research report on Wednesday, January 3rd. Finally, Bank of America began coverage on Consolidated Edison in a research report on Tuesday, October 24th. They issued a buy rating and a $92.00 target price for the company. Six investment analysts have rated the stock with a sell rating, six have issued a hold rating and three have given a buy rating to the company’s stock. The company currently has a consensus rating of Hold and an average price target of $80.29.

Shares of Consolidated Edison (NYSE:ED) traded down $0.01 during trading hours on Friday, reaching $78.27. The company’s stock had a trading volume of 2,580,000 shares, compared to its average volume of 1,710,000. Consolidated Edison has a fifty-two week low of $72.13 and a fifty-two week high of $89.70. The company has a current ratio of 0.79, a quick ratio of 0.70 and a debt-to-equity ratio of 0.97. The stock has a market cap of $24,270.00, a price-to-earnings ratio of 19.62, a price-to-earnings-growth ratio of 9.17 and a beta of 0.10.

Consolidated Edison (NYSE:ED) last issued its earnings results on Thursday, November 2nd. The utilities provider reported $1.47 earnings per share for the quarter, missing the Zacks’ consensus estimate of $1.54 by ($0.07). Consolidated Edison had a return on equity of 8.42% and a net margin of 10.42%. The business had revenue of $3.21 billion during the quarter, compared to analysts’ expectations of $3.14 billion. During the same period last year, the firm posted $1.51 EPS. sell-side analysts anticipate that Consolidated Edison will post 4.1 EPS for the current year.

The firm also recently declared a quarterly dividend, which will be paid on Thursday, March 15th. Stockholders of record on Wednesday, February 14th will be given a dividend of $0.715 per share. The ex-dividend date is Tuesday, February 13th. This represents a $2.86 annualized dividend and a dividend yield of 3.65%. This is a positive change from Consolidated Edison’s previous quarterly dividend of $0.69. Consolidated Edison’s dividend payout ratio is presently 69.17%.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Round Table Services LLC purchased a new stake in shares of Consolidated Edison during the 4th quarter valued at about $200,000. Wealth Enhancement Advisory Services LLC purchased a new stake in shares of Consolidated Edison during the 4th quarter valued at about $1,462,000. State of Alaska Department of Revenue increased its position in shares of Consolidated Edison by 34.9% during the 4th quarter. State of Alaska Department of Revenue now owns 109,683 shares of the utilities provider’s stock valued at $9,316,000 after purchasing an additional 28,360 shares during the last quarter. Schwab Charles Investment Management Inc. increased its position in shares of Consolidated Edison by 5.0% during the 4th quarter. Schwab Charles Investment Management Inc. now owns 1,120,226 shares of the utilities provider’s stock valued at $95,164,000 after purchasing an additional 52,931 shares during the last quarter. Finally, Gulf International Bank UK Ltd increased its position in shares of Consolidated Edison by 5.0% during the 4th quarter. Gulf International Bank UK Ltd now owns 99,364 shares of the utilities provider’s stock valued at $8,440,000 after purchasing an additional 4,700 shares during the last quarter. 55.50% of the stock is owned by hedge funds and other institutional investors.

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Consolidated Edison Company Profile

Consolidated Edison, Inc (Con Edison) is a holding company. The Company operates through its subsidiaries, which include Consolidated Edison Company of New York, Inc (CECONY), Orange and Rockland Utilities, Inc (O&R), Con Edison Clean Energy Businesses, Inc (the Clean Energy Businesses) and Con Edison Transmission, Inc (Con Edison Transmission).

Analyst Recommendations for Consolidated Edison (NYSE:ED)

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