CMS Energy (NYSE:CMS) Reaches New 1-Year High – Still a Buy?

CMS Energy Corporation (NYSE:CMS) hit a new 52-week high on Thursday . The stock traded as high as $77.32 and last traded at $77.0940, with a volume of 178126 shares traded. The stock had previously closed at $76.59.

Wall Street Analyst Weigh In

CMS has been the subject of several analyst reports. Mizuho raised their price objective on CMS Energy from $73.00 to $76.00 and gave the company a “neutral” rating in a research note on Friday, February 6th. Williams Trading set a $80.00 price target on CMS Energy in a research report on Monday, February 9th. Barclays boosted their price objective on shares of CMS Energy from $74.00 to $79.00 and gave the company an “overweight” rating in a research report on Monday. Bank of America set a $82.00 target price on shares of CMS Energy in a research note on Friday, January 30th. Finally, UBS Group restated a “neutral” rating on shares of CMS Energy in a report on Friday, February 6th. Eight equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $79.08.

CMS Energy Stock Up 1.2%

The company has a market cap of $23.89 billion, a P/E ratio of 22.09, a price-to-earnings-growth ratio of 2.73 and a beta of 0.47. The company has a debt-to-equity ratio of 1.89, a quick ratio of 0.76 and a current ratio of 0.98. The business’s fifty day moving average is $72.29 and its two-hundred day moving average is $72.48.

CMS Energy (NYSE:CMS) last posted its quarterly earnings results on Thursday, February 5th. The utilities provider reported $0.95 earnings per share for the quarter, beating the consensus estimate of $0.94 by $0.01. CMS Energy had a net margin of 12.54% and a return on equity of 12.09%. The firm had revenue of $2.23 billion during the quarter, compared to the consensus estimate of $2.13 billion. During the same quarter in the previous year, the firm posted $0.87 earnings per share. The company’s revenue was up 12.3% on a year-over-year basis. CMS Energy has set its FY 2026 guidance at 3.830-3.900 EPS. Equities analysts predict that CMS Energy Corporation will post 3.59 EPS for the current year.

CMS Energy Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, February 27th. Stockholders of record on Tuesday, February 17th were given a dividend of $0.57 per share. This represents a $2.28 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date of this dividend was Tuesday, February 17th. This is a positive change from CMS Energy’s previous quarterly dividend of $0.54. CMS Energy’s dividend payout ratio is currently 64.59%.

Insider Activity

In related news, Director John G. Russell sold 14,914 shares of the company’s stock in a transaction dated Friday, February 20th. The shares were sold at an average price of $75.75, for a total value of $1,129,735.50. Following the completion of the sale, the director directly owned 131,568 shares of the company’s stock, valued at $9,966,276. This represents a 10.18% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Diane Leopold purchased 2,000 shares of the stock in a transaction dated Wednesday, February 25th. The stock was acquired at an average cost of $76.70 per share, with a total value of $153,400.00. Following the transaction, the director directly owned 2,769 shares in the company, valued at approximately $212,382.30. This trade represents a 260.08% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders own 0.40% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Bison Wealth LLC purchased a new stake in shares of CMS Energy during the 4th quarter worth $312,000. Integrated Wealth Concepts LLC bought a new position in CMS Energy in the first quarter worth about $293,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of CMS Energy by 10.8% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 34,638 shares of the utilities provider’s stock valued at $2,602,000 after buying an additional 3,367 shares during the last quarter. Empowered Funds LLC boosted its holdings in shares of CMS Energy by 22.0% in the 1st quarter. Empowered Funds LLC now owns 6,788 shares of the utilities provider’s stock valued at $510,000 after buying an additional 1,226 shares in the last quarter. Finally, Woodline Partners LP grew its position in shares of CMS Energy by 40.7% in the 1st quarter. Woodline Partners LP now owns 25,243 shares of the utilities provider’s stock worth $1,896,000 after buying an additional 7,300 shares during the last quarter. 93.57% of the stock is currently owned by hedge funds and other institutional investors.

About CMS Energy

CMS Energy (NYSE: CMS) is an energy company based in Jackson, Michigan, whose principal business is the regulated utility operations of its subsidiary, Consumers Energy. The company is primarily focused on providing electric and natural gas service to customers in Michigan, operating the generation, transmission and distribution infrastructure necessary to deliver energy to residential, commercial and industrial customers. Headquartered in Jackson, CMS Energy conducts its core activities within the state and is regulated by state utility authorities.

Through Consumers Energy and related subsidiaries, CMS Energy develops, owns and operates a portfolio of generation assets and delivers a range of customer-facing services, including electricity and natural gas supply, grid management, energy efficiency programs and demand-response offerings.