Zacks Investment Research cut shares of CMS Energy (NYSE:CMS) from a buy rating to a hold rating in a research note issued to investors on Friday.
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. 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. However, the company incurs significant costs related to the construction, operation, and closure of solid waste disposal facilities for coal ash. Weather conditions have a significant impact on the demand for electricity and natural gas. A milder winter or a cooler summer in its service territories results in reduced utility usage, thereby affecting its financial performance.”
CMS has been the topic of several other reports. KeyCorp restated a buy rating and issued a $51.50 price objective on shares of CMS Energy in a research report on Friday, December 15th. Morgan Stanley restated an equal weight rating and issued a $52.00 price objective on shares of CMS Energy in a research report on Wednesday, December 13th. TheStreet downgraded CMS Energy from a b rating to a c+ rating in a research report on Wednesday, February 14th. SunTrust Banks set a $46.00 price objective on CMS Energy and gave the company a hold rating in a research report on Monday, March 19th. Finally, Wells Fargo upgraded CMS Energy from a market perform rating to an outperform rating in a research report on Monday, December 18th. Six investment analysts have rated the stock with a hold rating and nine have given a buy rating to the company’s stock. The company has a consensus rating of Buy and an average target price of $48.42.
CMS Energy (NYSE:CMS) last announced its quarterly earnings data on Wednesday, February 14th. The utilities provider reported $0.51 EPS for the quarter, meeting 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 the consensus estimate of $1.73 billion. During the same period in the previous year, the business earned $0.29 earnings per share. The business’s revenue was up 8.4% on a year-over-year basis. equities analysts anticipate that CMS Energy will post 2.33 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which was paid on Wednesday, February 28th. Stockholders of record on Friday, February 16th were issued a $0.3575 dividend. This represents a $1.43 annualized dividend and a dividend yield of 3.26%. This is a boost from CMS Energy’s previous quarterly dividend of $0.33. The ex-dividend date was Thursday, February 15th. CMS Energy’s payout ratio is 87.20%.
In other news, SVP Catherine M. Reynolds sold 8,310 shares of CMS Energy stock in a transaction dated 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 of the company’s stock, valued at $5,503,554. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 0.65% of the company’s stock.
Several hedge funds have recently modified their holdings of the company. Janney Montgomery Scott LLC increased its holdings in shares of CMS Energy by 3.2% in the third quarter. Janney Montgomery Scott LLC now owns 39,061 shares of the utilities provider’s stock worth $1,809,000 after purchasing an additional 1,210 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank increased its holdings in shares of CMS Energy by 2.3% in the third quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 56,831 shares of the utilities provider’s stock worth $2,632,000 after purchasing an additional 1,252 shares during the last quarter. Ibex Wealth Advisors increased its holdings in shares of CMS Energy by 9.0% in the fourth quarter. Ibex Wealth Advisors now owns 15,404 shares of the utilities provider’s stock worth $713,000 after purchasing an additional 1,271 shares during the last quarter. Cognios Capital LLC increased its holdings in shares of CMS Energy by 31.6% in the fourth quarter. Cognios Capital LLC now owns 5,750 shares of the utilities provider’s stock worth $271,000 after purchasing an additional 1,380 shares during the last quarter. Finally, Raymond James Financial Services Advisors Inc. increased its holdings in shares of CMS Energy by 4.0% in the fourth quarter. Raymond James Financial Services Advisors Inc. now owns 36,855 shares of the utilities provider’s stock worth $1,743,000 after purchasing an additional 1,420 shares during the last quarter. 88.31% of the stock is currently owned by hedge funds and other institutional investors.
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About CMS Energy
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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