Zacks Investment Research Upgrades CMS Energy (CMS) to “Hold”

CMS Energy (NYSE:CMS) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued to clients and investors on Tuesday.

According to Zacks, “CMS Energy’s focus on strengthening circuits and substations, replacing aging poles and installing smart meters is impressive. The company is currently focusing on several issues such as 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. These initiatives must have led the company to outperform its broader industry in past one year. However, unexpected weather conditions may result in reduced utility usage, thereby affecting CMS Energy’s performance. Moreover, increasing stringency of global environmental regulations on curbing carbon emissions during electricity generation remains a major concern for CMS Energy. Adverse decisions in regulatory cases may negatively impact the company’s earnings.”

A number of other research firms have also issued reports on CMS. Wells Fargo & Co upgraded shares of CMS Energy from a “market perform” rating to an “outperform” rating in a report on Monday, December 18th. Morgan Stanley reiterated an “equal weight” rating and set a $52.00 price objective on shares of CMS Energy in a report on Wednesday, December 13th. KeyCorp reiterated a “buy” rating and set a $51.50 price objective on shares of CMS Energy in a report on Friday, December 15th. Royal Bank of Canada reiterated a “hold” rating and set a $46.00 price objective on shares of CMS Energy in a report on Monday, September 11th. Finally, Bank of America started coverage on shares of CMS Energy in a report on Tuesday, October 24th. They set a “buy” rating and a $52.00 price objective on the stock. Six equities research analysts have rated the stock with a hold rating and nine have issued a buy rating to the company’s stock. CMS Energy currently has a consensus rating of “Buy” and an average price target of $49.25.

CMS Energy (CMS) traded down $0.38 during trading hours on Tuesday, reaching $44.01. 3,402,055 shares of the company’s stock were exchanged, compared to its average volume of 1,760,574. The stock has a market cap of $12,518.54, a price-to-earnings ratio of 22.80, a price-to-earnings-growth ratio of 2.95 and a beta of 0.19. The company has a debt-to-equity ratio of 1.99, a quick ratio of 0.59 and a current ratio of 0.94. CMS Energy has a 52 week low of $41.58 and a 52 week high of $50.85.

CMS Energy (NYSE:CMS) last released its earnings results on Thursday, October 26th. The utilities provider reported $0.62 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.55 by $0.07. The company had revenue of $1.53 billion for the quarter, compared to analyst estimates of $1.60 billion. CMS Energy had a net margin of 8.38% and a return on equity of 12.30%. The firm’s quarterly revenue was down 3.8% on a year-over-year basis. During the same period in the prior year, the firm earned $0.70 EPS. equities analysts predict that CMS Energy will post 2.17 earnings per share for the current year.

In related news, insider Dhenuvakonda Rao Venkat sold 1,000 shares of the stock in a transaction that occurred on Wednesday, November 1st. The shares were sold at an average price of $48.02, for a total transaction of $48,020.00. Following the completion of the sale, the insider now owns 28,176 shares of the company’s stock, valued at approximately $1,353,011.52. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider David G. Mengebier sold 2,500 shares of the stock in a transaction that occurred on Monday, November 20th. The stock was sold at an average price of $49.48, for a total transaction of $123,700.00. The disclosure for this sale can be found here. Corporate insiders own 0.65% of the company’s stock.

A number of institutional investors and hedge funds have recently bought and sold shares of CMS. Federated Investors Inc. PA increased its position in CMS Energy by 41.4% during the 2nd quarter. Federated Investors Inc. PA now owns 15,429 shares of the utilities provider’s stock worth $713,000 after purchasing an additional 4,521 shares in the last quarter. Pacer Advisors Inc. increased its position in CMS Energy by 8.3% during the 2nd quarter. Pacer Advisors Inc. now owns 5,050 shares of the utilities provider’s stock worth $234,000 after purchasing an additional 388 shares in the last quarter. Principal Financial Group Inc. increased its position in CMS Energy by 1.4% during the 2nd quarter. Principal Financial Group Inc. now owns 443,748 shares of the utilities provider’s stock worth $20,523,000 after purchasing an additional 6,002 shares in the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS increased its position in CMS Energy by 0.4% during the 2nd quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 20,836 shares of the utilities provider’s stock worth $964,000 after purchasing an additional 73 shares in the last quarter. Finally, Los Angeles Capital Management & Equity Research Inc. increased its position in CMS Energy by 258.6% during the 2nd quarter. Los Angeles Capital Management & Equity Research Inc. now owns 137,568 shares of the utilities provider’s stock worth $6,363,000 after purchasing an additional 99,209 shares in the last quarter. 87.15% of the stock is owned by hedge funds and other 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.

Analyst Recommendations for CMS Energy (NYSE:CMS)

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