Zacks Investment Research cut shares of CMS Energy (NYSE:CMS) from a buy rating to a hold rating in a report published on Friday.
According to Zacks, “CMS Energy's share price has outperformed the broader market in last one year. The company’s regulated electric power operations in Michigan generate a relatively stable and growing earnings stream. The company boasts a solid capital expenditure program to boost its infrastructural upgrades. It is currently focused on capacity maximization, reliability improvement, clean power generation and infrastructure upgrade. Under the electric utility operations, CMS Energy focuses on strengthening circuits and substations, replacing aging poles and installing smart meters. However, the company incurs significant costs related to the construction, operation, and closure of solid waste disposal facilities for coal ash. Weather conditions have a significant impact on the demand for electricity and natural gas. A milder winter or a cooler summer in its service territories results in reduced utility usage, thereby affecting its financial performance.”
Several other research firms also recently issued reports on CMS. Wells Fargo upgraded CMS Energy from a market perform rating to an outperform rating in a research note on Monday, December 18th. Morgan Stanley reaffirmed an equal weight rating and issued a $52.00 price objective on shares of CMS Energy in a report on Wednesday, December 13th. KeyCorp reaffirmed a buy rating and issued a $51.50 price objective on shares of CMS Energy in a report on Friday, December 15th. Guggenheim reaffirmed a hold rating and issued a $50.00 price objective on shares of CMS Energy in a report on Wednesday, January 3rd. Finally, SunTrust Banks reaffirmed a hold rating and issued a $46.00 price objective on shares of CMS Energy in a report on Tuesday, December 26th. Seven research analysts have rated the stock with a hold rating and eight have issued a buy rating to the stock. The stock has a consensus rating of Buy and a consensus price target of $48.50.
CMS Energy (CMS) traded down $0.70 on Friday, reaching $43.25. The company had a trading volume of 2,496,296 shares, compared to its average volume of 3,154,240. The company has a market cap of $12,412.38, a P/E ratio of 26.37, a PEG ratio of 2.98 and a beta of 0.14. CMS Energy has a twelve month low of $40.48 and a twelve month high of $50.85. The company has a debt-to-equity ratio of 2.06, a current ratio of 0.89 and a quick ratio of 0.65.
CMS Energy (NYSE:CMS) last released its quarterly earnings results on Wednesday, February 14th. The utilities provider reported $0.51 earnings per share (EPS) for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.51. The business had revenue of $1.78 billion during the quarter, compared to the consensus estimate of $1.73 billion. CMS Energy had a return on equity of 13.60% and a net margin of 6.99%. The firm’s quarterly revenue was up 8.4% on a year-over-year basis. During the same period in the previous year, the company posted $0.29 EPS. sell-side analysts predict that CMS Energy will post 2.33 EPS for the current year.
The firm also recently declared a quarterly dividend, which was paid on Wednesday, February 28th. Stockholders of record on Friday, February 16th were issued a dividend of $0.3575 per share. The ex-dividend date was Thursday, February 15th. This represents a $1.43 dividend on an annualized basis and a dividend yield of 3.31%. This is a boost from CMS Energy’s previous quarterly dividend of $0.33. CMS Energy’s payout ratio is 87.20%.
In other news, SVP Catherine M. Reynolds sold 8,310 shares of the business’s stock in a transaction on Tuesday, February 20th. The stock was sold at an average price of $43.40, for a total transaction of $360,654.00. Following the completion of the transaction, the senior vice president now owns 126,810 shares of the company’s stock, valued at approximately $5,503,554. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 0.65% of the stock is currently owned by insiders.
Several institutional investors have recently bought and sold shares of CMS. Capital International Investors raised its holdings in shares of CMS Energy by 68.9% during the 3rd quarter. Capital International Investors now owns 9,853,468 shares of the utilities provider’s stock worth $456,413,000 after buying an additional 4,018,068 shares in the last quarter. BlackRock Inc. grew its position in CMS Energy by 8.6% during the 4th quarter. BlackRock Inc. now owns 27,534,036 shares of the utilities provider’s stock worth $1,302,359,000 after acquiring an additional 2,182,812 shares during the last quarter. Renaissance Technologies LLC grew its position in CMS Energy by 69.8% during the 4th quarter. Renaissance Technologies LLC now owns 3,234,500 shares of the utilities provider’s stock worth $152,992,000 after acquiring an additional 1,329,800 shares during the last quarter. Zimmer Partners LP grew its position in CMS Energy by 185.9% during the 4th quarter. Zimmer Partners LP now owns 1,365,000 shares of the utilities provider’s stock worth $64,565,000 after acquiring an additional 887,500 shares during the last quarter. Finally, Wells Fargo & Company MN grew its position in CMS Energy by 83.2% during the 4th quarter. Wells Fargo & Company MN now owns 1,639,852 shares of the utilities provider’s stock worth $77,565,000 after acquiring an additional 744,878 shares during the last quarter. 88.29% of the stock is owned by institutional investors.
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About CMS Energy
CMS Energy Corporation is an energy company operating primarily in Michigan. The Company operates through three segments: electric utility, which consists of regulated activities associated with the generation, transmission and distribution of electricity in Michigan; gas utility, which consists of regulated activities associated with the transportation, storage and distribution of natural gas in Michigan, and enterprises, which consists of various subsidiaries engaging primarily in domestic independent power production.
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