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. Also, 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. However, 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.”
A number of other research firms have also recently commented on EIX. BMO Capital Markets reiterated an outperform rating and issued a $82.00 price objective (up from $79.00) on shares of Edison International in a report on Monday, August 1st. Argus restated a buy rating and set a $86.00 price target (up from $83.00) on shares of Edison International in a research note on Tuesday, July 5th. Evercore ISI cut Edison International from a buy rating to a hold rating and upped their price target for the stock from $70.00 to $79.00 in a research note on Wednesday, July 6th. Citigroup Inc. upped their price target on Edison International from $70.00 to $79.00 and gave the stock a neutral rating in a research note on Wednesday, July 20th. Finally, Jefferies Group restated a hold rating and set a $80.00 price target on shares of Edison International in a research note on Friday, September 2nd. Ten equities research analysts have rated the stock with a hold rating and six have assigned a buy rating to the company’s stock. The stock presently has an average rating of Hold and a consensus price target of $76.79.
Edison International (NYSE:EIX) opened at 72.07 on Friday. The stock has a 50 day moving average price of $72.36 and a 200-day moving average price of $73.17. 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 $23.48 billion, a P/E ratio of 26.72 and a beta of 0.23.
Edison International (NYSE:EIX) last issued its earnings results on Thursday, July 28th. The company reported $0.85 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.97 by $0.12. The company had revenue of $2.78 billion for the quarter, compared to analyst estimates of $3.18 billion. Edison International had a return on equity of 9.13% and a net margin of 8.56%. The company’s revenue for the quarter was down 4.5% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.16 earnings per share. Analysts anticipate that Edison International will post $3.91 earnings per share for the current year.
The business also recently disclosed a quarterly dividend, which will be paid on Monday, October 31st. Shareholders of record on Friday, September 30th will be paid a $0.48 dividend. The ex-dividend date is Wednesday, September 28th. This represents a $1.92 annualized dividend and a yield of 2.66%. Edison International’s dividend payout ratio is presently 71.11%.
In other Edison International news, insider Ronald L. Litzinger sold 38,084 shares of the company’s stock in a transaction that occurred on Monday, September 12th. The shares were sold at an average price of $72.10, for a total value of $2,745,856.40. Following the transaction, the insider now owns 12,053 shares in the company, valued at approximately $869,021.30. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Ellen O. Tauscher sold 3,012 shares of the company’s stock in a transaction that occurred on Wednesday, September 14th. The shares were sold at an average price of $71.87, for a total transaction of $216,472.44. The disclosure for this sale can be found here. 1.51% of the stock is currently owned by company insiders.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. JPMorgan Chase & Co. raised its position in Edison International by 25.3% in the second quarter. JPMorgan Chase & Co. now owns 16,223,155 shares of the company’s stock valued at $1,260,052,000 after buying an additional 3,277,814 shares in the last quarter. Vanguard Group Inc. increased its stake in Edison International by 8.0% in the second quarter. Vanguard Group Inc. now owns 24,445,643 shares of the company’s stock valued at $1,898,694,000 after buying an additional 1,811,159 shares in the last quarter. Lord Abbett & CO. LLC increased its stake in Edison International by 81.7% in the second quarter. Lord Abbett & CO. LLC now owns 2,460,224 shares of the company’s stock valued at $191,086,000 after buying an additional 1,106,314 shares in the last quarter. Emerald Acquisition Ltd. acquired a new stake in Edison International during the second quarter valued at approximately $80,013,000. Finally, Alliancebernstein L.P. increased its stake in Edison International by 18.2% in the second quarter. Alliancebernstein L.P. now owns 4,735,708 shares of the company’s stock valued at $367,822,000 after buying an additional 728,925 shares in the last quarter. Hedge funds and other institutional investors own 81.90% of the company’s stock.
Edison International Company Profile
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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