Edison International (NYSE:EIX) Sees Strong Trading Volume – Still a Buy?

Edison International (NYSE:EIX) saw unusually-strong trading volume on Tuesday . Approximately 1,890,748 shares changed hands during trading, a decline of 40% from the previous session’s volume of 3,161,839 shares.The stock last traded at $53.8610 and had previously closed at $53.98.

Key Headlines Impacting Edison International

Here are the key news stories impacting Edison International this week:

• Positive Sentiment: The stock’s rebound may reflect dip-buying after its steepest one-day decline in decades. Some investors reportedly view the selloff as an overreaction, while Edison’s Southern California Edison subsidiary is calling for comprehensive wildfire reform that could eventually provide utilities with greater protection. California wildfire legislation and investor reaction
• Neutral Sentiment: Mizuho reaffirmed its “neutral” rating but lowered its price target to $70 from $86. The revised target still implies substantial upside from recent trading levels, although the reduction highlights greater uncertainty surrounding EIX’s risk profile. Monday analyst research calls
• Negative Sentiment: Bank of America reaffirmed a “neutral” rating while cutting its price target sharply to $51 from $81, implying downside from recent levels. The action follows California lawmakers’ advancement of wildfire legislation that omits the liability protections investors had expected for investor-owned utilities. Edison stock wildfire liability bill
• Negative Sentiment: The amended California wildfire bill could leave Edison and other utilities responsible for significant wildfire-related costs if their equipment is found to have caused a fire. Investors are concerned that potentially uncapped liabilities could weaken cash flow, increase borrowing needs, and threaten credit ratings. Edison International wildfire liability protections

Wall Street Analyst Weigh In

A number of brokerages have weighed in on EIX. Weiss Ratings raised shares of Edison International from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday. Barclays reissued an “equal weight” rating and issued a $75.00 price objective (down from $78.00) on shares of Edison International in a research report on Friday, July 31st. UBS Group reduced their target price on shares of Edison International from $75.00 to $63.00 and set a “neutral” rating on the stock in a report on Tuesday. Morgan Stanley decreased their price target on shares of Edison International from $69.00 to $65.00 and set an “underweight” rating for the company in a research report on Friday, August 21st. Finally, Truist Financial lowered their price target on Edison International from $81.00 to $77.00 and set a “hold” rating for the company in a report on Tuesday, August 4th. Two analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Reduce” and a consensus target price of $67.18.

Edison International Trading Up 2.9%

The firm has a market cap of $21.38 billion, a price-to-earnings ratio of 5.73, a price-to-earnings-growth ratio of 5.45 and a beta of 0.66. The business’s 50 day moving average price is $73.94 and its 200-day moving average price is $72.33. The company has a debt-to-equity ratio of 1.95, a quick ratio of 0.61 and a current ratio of 0.66.

Edison International (NYSE:EIX) last posted its quarterly earnings results on Thursday, July 30th. The utilities provider reported $1.54 EPS for the quarter, topping analysts’ consensus estimates of $1.18 by $0.36. The business had revenue of $4.36 billion during the quarter, compared to the consensus estimate of $4.82 billion. Edison International had a return on equity of 15.53% and a net margin of 20.30%.The company’s revenue for the quarter was down 4.1% compared to the same quarter last year. During the same period last year, the firm earned $0.97 earnings per share. Edison International has set its FY 2026 guidance at 5.900-6.200 EPS. Equities analysts expect that Edison International will post 6.13 EPS for the current year.

Edison International Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, July 31st. Shareholders of record on Tuesday, July 7th were issued a dividend of $0.8775 per share. This represents a $3.51 dividend on an annualized basis and a yield of 6.3%. The ex-dividend date of this dividend was Tuesday, July 7th. Edison International’s dividend payout ratio (DPR) is currently 36.19%.

Institutional Investors Weigh In On Edison International

A number of institutional investors have recently made changes to their positions in the company. Jones Financial Companies Lllp raised its position in shares of Edison International by 112.9% during the 1st quarter. Jones Financial Companies Lllp now owns 9,785 shares of the utilities provider’s stock valued at $577,000 after acquiring an additional 5,190 shares in the last quarter. Empowered Funds LLC raised its holdings in shares of Edison International by 2.4% during the first quarter. Empowered Funds LLC now owns 8,875 shares of the utilities provider’s stock worth $523,000 after purchasing an additional 211 shares during the period. Woodline Partners LP raised its holdings in shares of Edison International by 40.7% during the first quarter. Woodline Partners LP now owns 32,709 shares of the utilities provider’s stock worth $1,927,000 after purchasing an additional 9,459 shares during the period. Sivia Capital Partners LLC lifted its position in shares of Edison International by 153.6% in the 2nd quarter. Sivia Capital Partners LLC now owns 8,734 shares of the utilities provider’s stock worth $451,000 after buying an additional 5,290 shares during the last quarter. Finally, Baird Financial Group Inc. bought a new position in shares of Edison International in the 2nd quarter worth about $302,000. 88.95% of the stock is currently owned by institutional investors.

About Edison International

Edison International is a publicly traded utility holding company based in Rosemead, California, whose principal subsidiary is Southern California Edison (SCE). As an electric utility holding company, Edison International oversees the delivery of electricity through SCE’s integrated network of generation procurement, transmission and distribution infrastructure, serving millions of customers across central, coastal and southern California. The company’s operations focus on reliable energy delivery, customer service, regulatory compliance and long-term infrastructure planning for a complex and high-demand service territory.

The company’s activities include procuring and managing a diverse resource mix, maintaining and upgrading transmission and distribution systems, and implementing grid modernization projects.