Edison International (NYSE:EIX) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Thursday. The firm currently has a $78.00 price target on the stock. Zacks Investment Research’s price objective suggests a potential upside of 10.09% from the company’s previous close.
According to Zacks, “Edison International remains focused on its transmission and distribution infrastructural development programs, and expansion of its operations. Its SCE unit targets average annual rate base and earnings growth of 7% through 2017 driven by infrastructural investment. In addition, Edison International boasts a solid financial position backed by strong cash generation capacity. However, the company presents a lower risk profile compared to its utility-only peers, with a strong portfolio of regulated utility assets and well-managed merchant energy operations. Meanwhile, any change in environmental rules, adverse decision of regulatory bodies, and power and coal price volatility are causes of concern. Moreover, any adverse decision on a General Rate Case (GRC) will greatly affect the utility's earnings growth, the company’s performance is subject to approvals from regulatory bodies.”
EIX has been the topic of a number of other research reports. SunTrust Banks Inc. raised their price objective on shares of Edison International from $82.00 to $84.00 and gave the stock a “buy” rating in a report on Monday, September 26th. Jefferies Group reissued a “hold” rating on shares of Edison International in a report on Monday, July 11th. Evercore ISI cut shares of Edison International from a “buy” rating to a “hold” rating and raised their price objective for the stock from $70.00 to $79.00 in a report on Wednesday, July 6th. Argus reissued a “buy” rating and set a $86.00 price objective (up previously from $83.00) on shares of Edison International in a report on Tuesday, July 5th. Finally, Deutsche Bank AG raised their price objective on shares of Edison International from $76.00 to $77.00 and gave the stock a “hold” rating in a report on Friday, July 29th. Ten analysts have rated the stock with a hold rating and six have given a buy rating to the stock. The stock currently has an average rating of “Hold” and a consensus price target of $76.79.
Shares of Edison International (NYSE:EIX) opened at 70.85 on Thursday. The company’s 50-day moving average is $72.40 and its 200-day moving average is $73.15. Edison International has a one year low of $57.51 and a one year high of $78.72. The stock has a market capitalization of $23.08 billion, a P/E ratio of 26.27 and a beta of 0.23.
Edison International (NYSE:EIX) last released its quarterly earnings data on Thursday, July 28th. The company reported $0.85 earnings per share for the quarter, missing analysts’ consensus estimates of $0.97 by $0.12. Edison International had a return on equity of 9.13% and a net margin of 8.56%. The company had revenue of $2.78 billion for the quarter, compared to analyst estimates of $3.18 billion. During the same period in the previous year, the business posted $1.16 EPS. The firm’s revenue for the quarter was down 4.5% compared to the same quarter last year. On average, equities research analysts anticipate that Edison International will post $3.91 earnings per share for the current year.
The business also recently announced a quarterly dividend, which will be paid on Monday, October 31st. Shareholders of record on Friday, September 30th will be given a dividend of $0.48 per share. The ex-dividend date is Wednesday, September 28th. This represents a $1.92 annualized dividend and a dividend yield of 2.71%. Edison International’s payout ratio is currently 71.11%.
In related news, Director Jagjeet S. Bindra sold 3,995 shares of the business’s stock in a transaction dated Wednesday, September 7th. The shares were sold at an average price of $73.80, for a total value of $294,831.00. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, insider Ronald L. Litzinger sold 38,084 shares of the business’s stock in a transaction dated Monday, September 12th. The stock was sold at an average price of $72.10, for a total transaction of $2,745,856.40. Following the completion of the sale, the insider now owns 12,053 shares in the company, valued at $869,021.30. The disclosure for this sale can be found here. Company insiders own 1.51% of the company’s stock.
Several large investors have recently added to or reduced their stakes in the company. Virginia Retirement System acquired a new stake in Edison International during the first quarter valued at approximately $380,000. M&T Bank Corp raised its stake in Edison International by 13.0% in the first quarter. M&T Bank Corp now owns 26,263 shares of the company’s stock valued at $1,887,000 after buying an additional 3,015 shares in the last quarter. Aviva PLC raised its stake in Edison International by 2.3% in the first quarter. Aviva PLC now owns 167,505 shares of the company’s stock valued at $12,042,000 after buying an additional 3,826 shares in the last quarter. NWQ Investment Management Company LLC acquired a new stake in Edison International during the first quarter valued at approximately $52,037,000. Finally, Canada Pension Plan Investment Board raised its stake in Edison International by 128.9% in the first quarter. Canada Pension Plan Investment Board now owns 433,630 shares of the company’s stock valued at $31,174,000 after buying an additional 244,196 shares in the last quarter. Institutional investors and hedge funds own 81.90% of the company’s stock.
About Edison International
Edison International is the parent holding company of Southern California Edison Company (SCE). SCE is engaged in the business of supplying and delivering electricity to an approximately 50,000 square mile area of southern California. It is also the parent company of subsidiaries that are engaged in competitive businesses focused on providing energy services to commercial and industrial customers, including distributed resources, engaging in transmission opportunities, and exploring distributed water treatment and recycling.
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