Edison International (EIX) Lowered to “Hold” at Zacks Investment Research
Edison International (NYSE:EIX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Tuesday.
According to Zacks, “Edison International enjoys a strong portfolio of regulated utility assets and well-managed merchant energy operations, which present a lower risk profile than its utility-only peers. The company boasts a solid financial position backed by strong cash generation capacity. It also plans on upgrading infrastructure projects, and continues to strive for operational excellence and create a foundation for an improved SCE cost structure. A stable financial position enables Edison International to maximize shareholder value through the payment of regular dividends. However, adverse regulatory decisions for 2018 GRC application may impact financial performance. Also, inability to recover uninsured wildfire-related costs may affect financial condition. It's shares also underperformed the industry in the last one yaer.”
Several other equities research analysts have also weighed in on EIX. Argus upped their price objective on Edison International to $75.00 and gave the company a “buy” rating in a research note on Monday, July 9th. ValuEngine upgraded Edison International from a “strong sell” rating to a “sell” rating in a research note on Thursday, June 28th. Citigroup set a $72.00 price objective on Edison International and gave the company a “hold” rating in a research note on Tuesday, October 9th. Barclays began coverage on Edison International in a research note on Tuesday, July 10th. They issued an “equal weight” rating and a $73.00 price objective on the stock. Finally, Morgan Stanley upped their price objective on Edison International from $67.00 to $72.00 and gave the company an “equal weight” rating in a research note on Monday, July 16th. Twelve analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. The stock presently has an average rating of “Hold” and a consensus price target of $73.92.
Edison International (NYSE:EIX) last released its quarterly earnings data on Thursday, July 26th. The utilities provider reported $0.84 earnings per share for the quarter, beating the consensus estimate of $0.83 by $0.01. Edison International had a return on equity of 10.27% and a net margin of 4.34%. The company had revenue of $2.82 billion for the quarter, compared to analyst estimates of $2.97 billion. During the same period in the prior year, the company posted $0.85 EPS. The company’s revenue was down 5.1% compared to the same quarter last year. Sell-side analysts forecast that Edison International will post 4.08 EPS for the current year.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Pzena Investment Management LLC boosted its position in Edison International by 43.1% in the 2nd quarter. Pzena Investment Management LLC now owns 7,836,404 shares of the utilities provider’s stock valued at $495,809,000 after buying an additional 2,361,340 shares during the last quarter. Macquarie Group Ltd. boosted its position in Edison International by 15.3% in the 2nd quarter. Macquarie Group Ltd. now owns 11,095,751 shares of the utilities provider’s stock valued at $702,028,000 after buying an additional 1,475,620 shares during the last quarter. American Century Companies Inc. boosted its position in Edison International by 13.2% in the 2nd quarter. American Century Companies Inc. now owns 4,626,243 shares of the utilities provider’s stock valued at $292,702,000 after buying an additional 539,897 shares during the last quarter. Columbus Hill Capital Management L.P. boosted its position in Edison International by 1,706.3% in the 2nd quarter. Columbus Hill Capital Management L.P. now owns 505,753 shares of the utilities provider’s stock valued at $31,999,000 after buying an additional 477,753 shares during the last quarter. Finally, Tobam boosted its position in Edison International by 37.3% in the 2nd quarter. Tobam now owns 951,251 shares of the utilities provider’s stock valued at $60,186,000 after buying an additional 258,555 shares during the last quarter. Institutional investors and hedge funds own 81.83% of the company’s stock.
Edison International Company Profile
Edison International, through its subsidiaries, engages in the generation, transmission, and distribution of electricity in the United States. It generates electricity through hydroelectric, diesel/liquid petroleum gas, natural gas, nuclear, and photovoltaic sources. The company supplies electricity primarily to residential, commercial, industrial, agricultural, and other customers, as well as public authorities through transmission and distribution networks.
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