Zacks Investment Research upgraded shares of CMS Energy (NYSE:CMS) from a hold rating to a buy rating in a research report sent to investors on Tuesday. They currently have $49.00 price target on the utilities provider’s stock.
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. We also appreciate CMS Energy’s sustained efforts to expand its renewable portfolio. 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. Besides investing in infrastructure projects, a favorable financial position enables CMS Energy to pay dividends at regular intervals. However, the company incurs significant costs related to the construction, operation, and closure of solid waste disposal facilities for coal ash.”
Several other research firms have also recently weighed in on CMS. Wells Fargo raised CMS Energy from a market perform rating to an outperform rating in a research report on Monday, December 18th. Morgan Stanley reissued an equal weight rating and issued a $52.00 price objective on shares of CMS Energy in a research report on Wednesday, December 13th. KeyCorp reissued a buy rating and issued a $51.50 price objective on shares of CMS Energy in a research report on Friday, December 15th. Guggenheim reissued a hold rating and issued a $50.00 price objective on shares of CMS Energy in a research report on Wednesday, January 3rd. Finally, SunTrust Banks reissued a hold rating and issued a $46.00 price objective on shares of CMS Energy in a research report on Tuesday, December 26th. Seven research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company. The company has an average rating of Buy and a consensus price target of $48.50.
CMS Energy (NYSE:CMS) last posted its quarterly earnings data on Wednesday, February 14th. The utilities provider reported $0.51 earnings per share for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.51. CMS Energy had a return on equity of 13.60% and a net margin of 6.99%. The business had revenue of $1.78 billion for the quarter, compared to analysts’ expectations of $1.73 billion. During the same quarter in the previous year, the firm earned $0.29 earnings per share. The business’s revenue was up 8.4% on a year-over-year basis. research analysts forecast that CMS Energy will post 2.33 EPS for the current year.
The company also recently announced a quarterly dividend, which was paid on Wednesday, February 28th. Shareholders of record on Friday, February 16th were paid a $0.3575 dividend. The ex-dividend date of this dividend was Thursday, February 15th. This is a positive change from CMS Energy’s previous quarterly dividend of $0.33. This represents a $1.43 annualized dividend and a dividend yield of 3.31%. CMS Energy’s payout ratio is presently 87.20%.
In other CMS Energy 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 value of $360,654.00. Following the sale, the senior vice president now directly owns 126,810 shares in the company, valued at $5,503,554. The sale was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 0.65% of the company’s stock.
Several institutional investors and hedge funds have recently modified their holdings of CMS. Capital International Investors raised its stake in shares of CMS Energy by 68.9% in the third quarter. Capital International Investors now owns 9,853,468 shares of the utilities provider’s stock valued at $456,413,000 after buying an additional 4,018,068 shares during the period. BlackRock Inc. raised its stake in shares of CMS Energy by 8.6% in the fourth quarter. BlackRock Inc. now owns 27,534,036 shares of the utilities provider’s stock valued at $1,302,359,000 after buying an additional 2,182,812 shares during the period. Renaissance Technologies LLC raised its stake in shares of CMS Energy by 69.8% in the fourth quarter. Renaissance Technologies LLC now owns 3,234,500 shares of the utilities provider’s stock valued at $152,992,000 after buying an additional 1,329,800 shares during the period. Zimmer Partners LP raised its stake in shares of CMS Energy by 185.9% in the fourth quarter. Zimmer Partners LP now owns 1,365,000 shares of the utilities provider’s stock valued at $64,565,000 after buying an additional 887,500 shares during the period. Finally, Wells Fargo & Company MN raised its stake in shares of CMS Energy by 83.2% in the fourth quarter. Wells Fargo & Company MN now owns 1,639,852 shares of the utilities provider’s stock valued at $77,565,000 after buying an additional 744,878 shares during the period. Hedge funds and other institutional investors own 88.29% of the company’s stock.
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CMS Energy Company Profile
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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