Analysts at Wall Street Zen have downgraded the stock rating of CMS Energy (NYSE:CMS) from a “hold” to a “sell.” This decision was announced in a report released on Saturday, reflecting a shift in sentiment among market analysts regarding the utility provider based in Michigan.
Several other financial institutions have also recently provided insights on CMS Energy. On October 28, 2023, Wells Fargo & Company upgraded its rating to “hold.” Just days earlier, on October 15, KeyCorp adjusted its price target on CMS Energy from $76.00 to $79.00, assigning it an “overweight” rating. In a separate note on October 8, Weiss Ratings reaffirmed a “buy (b-)” rating for the stock. Meanwhile, JPMorgan Chase & Co. lowered its target price from $85.00 to $80.00, while maintaining an “overweight” rating. Barclays also raised its price target from $78.00 to $82.00 on October 21.
Overall, nine analysts have issued a “buy” rating for CMS Energy, with five analysts supporting a “hold” rating. According to data from MarketBeat.com, the consensus rating stands at “Moderate Buy,” with a consensus price target of $78.50.
Recent Earnings and Financial Performance
CMS Energy released its earnings results on October 30, 2023, reporting earnings per share of $0.93 for the quarter. This figure exceeded analysts’ consensus estimates of $0.86 by $0.07. The company generated revenue of $2.02 billion, surpassing the anticipated $1.83 billion. The firm achieved a net margin of 12.62% and a return on equity of 12.10%, and its revenue showed a significant increase of 15.9% compared to the same quarter in the previous year.
In terms of future guidance, CMS Energy has set its fiscal year 2026 earnings per share target between $3.800 and $3.870, while the guidance for fiscal year 2025 ranges from $3.560 to $3.600. Analysts estimate that the company will report $3.59 earnings per share for the current fiscal year.
Insider Activity and Institutional Investment
In related news, Brandon J. Hofmeister, Senior Vice President of CMS Energy, sold 4,000 shares of the company on November 3, 2023, at an average price of $72.47, amounting to a total transaction of $289,880.00. Following this transaction, Hofmeister retains 64,259 shares of CMS Energy, valued at approximately $4,656,849.73, reflecting a 5.86% decrease in ownership. The transaction details were disclosed in a filing with the U.S. Securities and Exchange Commission.
Institutional investors have shown significant interest in CMS Energy. Notably, Norges Bank acquired a new stake in the company valued at approximately $238.95 million during the second quarter. Price T. Rowe Associates Inc. increased its holdings by 16.1% in the first quarter, now owning 16,554,877 shares worth $1.24 billion. Other significant investors include Qube Research & Technologies Ltd, which expanded its position by 1,048.7%, and Soroban Capital Partners LP, which raised its stake by 215.8% during the same period.
As of the latest reports, institutional investors collectively own 93.57% of CMS Energy’s stock, underlining strong institutional confidence in the company.
CMS Energy Corporation operates primarily in Michigan, focusing on electric and gas utility services. The firm is involved in the generation, purchase, transmission, distribution, and sale of electricity, utilizing a diverse range of energy sources, including coal, wind, gas, renewable energy, oil, and nuclear power.
