Zacks Investment Research Downgrades CMS Energy (CMS) to Hold
CMS Energy (NYSE:CMS) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Wednesday.
According to Zacks, “CMS Energy started off 2018 on an impressive note, with its first-quarter earnings as well as revenues having comfortably surpassed the respective Zacks Consensus Estimate. The company’s share price has outperformed the broader market in last one year. It'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. 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. Moreover, CMS Energy’s businesses are sensitive to commodity prices. A milder winter or a cooler summer in CMS Energy’s service territories may result in reduced utility usage.”
A number of other research analysts have also recently weighed in on the stock. TheStreet upgraded shares of CMS Energy from a “c+” rating to an “a-” rating in a research report on Thursday, April 26th. Bank of America reiterated a “buy” rating and set a $49.00 price objective (up previously from $48.00) on shares of CMS Energy in a research report on Monday, February 26th. Hilliard Lyons upgraded shares of CMS Energy from a “neutral” rating to a “buy” rating in a research report on Thursday, February 15th. Morgan Stanley cut their price objective on shares of CMS Energy from $46.00 to $45.00 and set an “equal weight” rating on the stock in a research report on Thursday, March 8th. Finally, SunTrust Banks reiterated a “hold” rating and set a $45.00 price objective on shares of CMS Energy in a research report on Monday, January 29th. Six analysts have rated the stock with a hold rating and eight have issued a buy rating to the company. The company presently has an average rating of “Buy” and an average target price of $48.08.
CMS Energy (NYSE:CMS) last announced its quarterly earnings results on Thursday, April 26th. The utilities provider reported $0.86 earnings per share for the quarter, topping the consensus estimate of $0.82 by $0.04. CMS Energy had a net margin of 7.48% and a return on equity of 14.33%. The company had revenue of $1.95 billion for the quarter, compared to analysts’ expectations of $1.85 billion. During the same quarter in the previous year, the business posted $0.71 earnings per share. CMS Energy’s quarterly revenue was up 6.8% on a year-over-year basis. analysts anticipate that CMS Energy will post 2.33 EPS for the current year.
In related news, SVP Catherine M. Reynolds sold 8,310 shares of the company’s stock in a transaction dated Tuesday, February 20th. The shares were sold at an average price of $43.40, for a total value of $360,654.00. Following the completion of the sale, the senior vice president now directly owns 126,810 shares of the company’s stock, valued at $5,503,554. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, VP Glenn P. Barba sold 10,000 shares of the company’s stock in a transaction dated Wednesday, May 2nd. The stock was sold at an average price of $46.85, for a total transaction of $468,500.00. Following the completion of the sale, the vice president now directly owns 32,161 shares of the company’s stock, valued at $1,506,742.85. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 24,921 shares of company stock valued at $1,134,161. 0.65% of the stock is owned by insiders.
Large investors have recently added to or reduced their stakes in the stock. Cerebellum GP LLC purchased a new stake in CMS Energy in the fourth quarter worth about $122,000. Zions Bancorporation purchased a new stake in CMS Energy in the first quarter worth about $119,000. Tower Research Capital LLC TRC lifted its stake in CMS Energy by 271.1% in the fourth quarter. Tower Research Capital LLC TRC now owns 2,735 shares of the utilities provider’s stock worth $129,000 after acquiring an additional 1,998 shares during the period. Advisors Preferred LLC purchased a new stake in CMS Energy in the first quarter worth about $139,000. Finally, Dupont Capital Management Corp purchased a new stake in CMS Energy in the first quarter worth about $144,000. 88.91% of the stock is owned by institutional investors.
CMS Energy Company Profile
CMS Energy Corporation operates as an energy company primarily in Michigan. It operates through three segments: Electric Utility, Gas Utility, and Enterprises. The Electric Utility segment engages in the generation, purchase, transmission, distribution, and sale of electricity. It generates electricity through fossil-fuel-fired plants, as well as renewable energy and nuclear sources.
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