Zacks Investment Research Upgrades CMS Energy (CMS) to Hold

Zacks Investment Research upgraded shares of CMS Energy (NYSE:CMS) from a sell rating to a hold rating in a research note issued to investors on Thursday.

According to Zacks, “CMS Energy ended 2017 on a mixed note. While its fourth-quarter earnings came in line with the Zacks Consensus Estimate, the top line figure surpassed the mark. Its 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. However, the company incurs significant costs related to the construction, operation, and closure of solid waste disposal facilities for coal ash. Moreover, it is relatively overvalued from a historic perspective as well as compared with its broader industry, in terms of P/E multiple.”

Several other equities analysts have also issued reports on the company. Bank of America started coverage on CMS Energy in a research note on Tuesday, October 24th. They set a buy rating and a $52.00 target price on the stock. SunTrust Banks reissued a hold rating and set a $46.00 target price on shares of CMS Energy in a research note on Tuesday, December 26th. Wells Fargo & Co raised CMS Energy from a market perform rating to an outperform rating in a research note on Monday, December 18th. Morgan Stanley reissued an equal weight rating and set a $52.00 target price on shares of CMS Energy in a research note on Wednesday, December 13th. Finally, Guggenheim reissued a hold rating and set a $50.00 target price on shares of CMS Energy in a research note on Wednesday, January 3rd. Seven investment analysts have rated the stock with a hold rating and nine have issued a buy rating to the company. The stock currently has a consensus rating of Buy and an average price target of $48.54.

CMS Energy (CMS) opened at $44.20 on Thursday. CMS Energy has a 12 month low of $40.48 and a 12 month high of $50.85. The company has a current ratio of 0.89, a quick ratio of 0.65 and a debt-to-equity ratio of 2.06. The stock has a market capitalization of $12,482.98, a PE ratio of 20.37, a P/E/G ratio of 3.00 and a beta of 0.09.

CMS Energy (NYSE:CMS) last posted its earnings results on Wednesday, February 14th. The utilities provider reported $0.51 earnings per share (EPS) 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 firm had revenue of $1.78 billion for the quarter, compared to analyst estimates of $1.73 billion. During the same quarter in the prior year, the company earned $0.29 EPS. CMS Energy’s revenue was up 8.4% on a year-over-year basis. analysts forecast that CMS Energy will post 2.33 earnings per share for the current year.

The business also recently declared a quarterly dividend, which will be paid on Wednesday, February 28th. Shareholders of record on Friday, February 16th will be given a $0.3575 dividend. The ex-dividend date is Thursday, February 15th. This represents a $1.43 dividend on an annualized basis and a yield of 3.24%. This is a positive change from CMS Energy’s previous quarterly dividend of $0.33. CMS Energy’s dividend payout ratio (DPR) is currently 87.20%.

A number of hedge funds have recently bought and sold shares of the business. OLD Mutual Customised Solutions Proprietary Ltd. raised its position in CMS Energy by 39.2% in the 4th quarter. OLD Mutual Customised Solutions Proprietary Ltd. now owns 19,174 shares of the utilities provider’s stock valued at $907,000 after purchasing an additional 5,400 shares in the last quarter. Brookfield Asset Management Inc. raised its position in CMS Energy by 56.7% in the 4th quarter. Brookfield Asset Management Inc. now owns 1,534,959 shares of the utilities provider’s stock valued at $72,604,000 after purchasing an additional 555,100 shares in the last quarter. MetLife Investment Advisors LLC acquired a new stake in CMS Energy in the 4th quarter valued at about $4,127,000. Magellan Asset Management Ltd raised its position in CMS Energy by 1.0% in the 4th quarter. Magellan Asset Management Ltd now owns 190,282 shares of the utilities provider’s stock valued at $9,000,000 after purchasing an additional 1,937 shares in the last quarter. Finally, Macquarie Group Ltd. increased its holdings in shares of CMS Energy by 3.4% in the 4th quarter. Macquarie Group Ltd. now owns 265,234 shares of the utilities provider’s stock valued at $12,259,000 after acquiring an additional 8,717 shares during the last quarter. 89.23% of the stock is currently owned by institutional investors.

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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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