CMS Energy (CMS) Downgraded to Hold at Zacks Investment Research

CMS Energy (NYSE:CMS) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Monday, Zacks.com reports.

According to Zacks, “CMS Energy’s regulated electric power operations in Michigan generate a relatively stable and growing earnings stream. In the past twelve months, shares of CMS Energy also outperformed its industry. Moreover, CMS Energy boasts a solid capital expenditure program, under which it plans to spend $11.2 billion on infrastructure upgrades and replacements, and electric supply projects from 2019 through 2023. Of this, the company will spend $5.1 billion for Gas Infrastructure and $6.1 billion for Electric Utility.  However, CMS Energy incurs significant costs related to the construction, operation, and closure of solid waste disposal facilities for coal ash. It estimates to incur cost of removal expenditures to comply with regulations relating to ash disposal worth $215 million from 2018 through 2022.”

CMS has been the topic of several other reports. SunTrust Banks reaffirmed a “hold” rating and set a $55.00 price target on shares of CMS Energy in a research report on Tuesday, December 18th. Citigroup upped their price objective on shares of CMS Energy from $51.00 to $52.00 and gave the company a “neutral” rating in a report on Wednesday, December 19th. Argus upped their price objective on shares of CMS Energy from $56.00 to $58.00 and gave the company a “buy” rating in a report on Friday, February 22nd. Bank of America upgraded shares of CMS Energy from a “neutral” rating to a “buy” rating and set a $60.00 price objective on the stock in a report on Thursday. Finally, Goldman Sachs Group began coverage on shares of CMS Energy in a report on Wednesday, January 16th. They issued a “neutral” rating and a $52.00 price objective on the stock. Eight analysts have rated the stock with a hold rating and seven have issued a buy rating to the stock. The company currently has a consensus rating of “Hold” and an average target price of $54.50.

NYSE CMS traded up $0.02 on Monday, hitting $55.00. 588,546 shares of the stock were exchanged, compared to its average volume of 2,445,425. The company has a current ratio of 0.94, a quick ratio of 0.69 and a debt-to-equity ratio of 2.23. CMS Energy has a 52 week low of $42.52 and a 52 week high of $56.29. The firm has a market capitalization of $15.60 billion, a P/E ratio of 23.61, a price-to-earnings-growth ratio of 3.45 and a beta of 0.19.

CMS Energy (NYSE:CMS) last posted its quarterly earnings results on Thursday, January 31st. The utilities provider reported $0.40 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.41 by ($0.01). CMS Energy had a return on equity of 13.93% and a net margin of 9.56%. The firm had revenue of $1.83 billion for the quarter, compared to the consensus estimate of $1.54 billion. During the same period last year, the company posted $0.51 earnings per share. On average, research analysts anticipate that CMS Energy will post 2.51 EPS for the current fiscal year.

In other CMS Energy news, SVP Catherine M. Reynolds sold 8,187 shares of the company’s stock in a transaction on Tuesday, February 12th. The shares were sold at an average price of $53.02, for a total value of $434,074.74. Following the transaction, the senior vice president now directly owns 129,389 shares in the company, valued at $6,860,204.78. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 0.52% of the stock is owned by insiders.

Several hedge funds have recently added to or reduced their stakes in the stock. Janney Montgomery Scott LLC grew its stake in shares of CMS Energy by 0.4% in the fourth quarter. Janney Montgomery Scott LLC now owns 45,700 shares of the utilities provider’s stock valued at $2,269,000 after acquiring an additional 196 shares in the last quarter. Virtus ETF Advisers LLC grew its stake in shares of CMS Energy by 1.7% in the fourth quarter. Virtus ETF Advisers LLC now owns 13,021 shares of the utilities provider’s stock valued at $646,000 after acquiring an additional 214 shares in the last quarter. Redpoint Investment Management Pty Ltd grew its stake in shares of CMS Energy by 0.4% in the fourth quarter. Redpoint Investment Management Pty Ltd now owns 50,705 shares of the utilities provider’s stock valued at $2,518,000 after acquiring an additional 218 shares in the last quarter. Clarius Group LLC grew its stake in CMS Energy by 3.8% during the fourth quarter. Clarius Group LLC now owns 5,965 shares of the utilities provider’s stock worth $296,000 after buying an additional 219 shares in the last quarter. Finally, Cox Capital Mgt LLC grew its stake in CMS Energy by 1.6% during the fourth quarter. Cox Capital Mgt LLC now owns 14,158 shares of the utilities provider’s stock worth $732,000 after buying an additional 226 shares in the last quarter. Institutional investors and hedge funds own 92.68% of the company’s stock.

CMS Energy Company Profile

CMS Energy Corporation operates as an energy company primarily in Michigan. The company operates in three segments: Electric Utility, Gas Utility, and Enterprises. The Electric Utility segment is involved in the generation, purchase, transmission, distribution, and sale of electricity. The segment generates electricity through coal, gas, renewable energy, oil, and nuclear sources.

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