CMS Energy (CMS) Cut to Hold at Zacks Investment Research

Zacks Investment Research cut shares of CMS Energy (NYSE:CMS) from a buy rating to a hold rating in a research note released on Thursday.

According to Zacks, “CMS Energy'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. It is currently focused on 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. However, the it incurs significant costs related to the construction, operation, and closure of solid waste disposal facilities for coal ash. CMS Energy’s businesses are sensitive to commodity prices. An upward movement in fuel prices could increase the company’s cost of operations. Also, adverse decisions in regulatory cases may negatively impact CMS Energy’s earnings.”

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Other equities research analysts have also recently issued research reports about the stock. UBS assumed coverage on shares of CMS Energy in a research report on Friday, February 2nd. They issued a neutral rating and a $49.00 price target on the stock. SunTrust Banks restated a hold rating and issued a $45.00 price target on shares of CMS Energy in a research report on Monday, March 26th. Wells Fargo reduced their price target on shares of CMS Energy from $55.00 to $50.00 and set an outperform rating on the stock in a research report on Thursday, February 15th. Hilliard Lyons upgraded shares of CMS Energy from a neutral rating to a buy rating in a research report on Thursday, February 15th. Finally, Morgan Stanley reduced their price target on shares of CMS Energy from $49.00 to $45.00 and set an equal weight rating on the stock in a research report on Tuesday, February 13th. Seven analysts have rated the stock with a hold rating and eight have given a buy rating to the stock. The stock presently has a consensus rating of Buy and a consensus target price of $48.42.

Shares of CMS opened at $45.29 on Thursday. CMS Energy has a fifty-two week low of $40.48 and a fifty-two week high of $50.85. The firm has a market capitalization of $12,790.80, a P/E ratio of 20.87, a price-to-earnings-growth ratio of 3.07 and a beta of 0.14. The company has a current ratio of 0.89, a quick ratio of 0.65 and a debt-to-equity ratio of 2.06.

CMS Energy (NYSE:CMS) last announced its quarterly earnings results on Wednesday, February 14th. The utilities provider reported $0.51 earnings per share for the quarter, hitting the consensus estimate of $0.51. CMS Energy had a net margin of 6.99% and a return on equity of 13.60%. The company had revenue of $1.78 billion for the quarter, compared to analysts’ expectations of $1.73 billion. During the same quarter in the previous year, the business posted $0.29 earnings per share. CMS Energy’s quarterly revenue was up 8.4% on a year-over-year basis. analysts anticipate that CMS Energy will post 2.33 EPS for the current year.

In other CMS Energy news, SVP Catherine M. Reynolds sold 8,310 shares of the business’s stock in a transaction on Tuesday, February 20th. The shares were sold at an average price of $43.40, for a total transaction of $360,654.00. Following the transaction, the senior vice president now owns 126,810 shares in the company, valued at $5,503,554. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 0.65% of the company’s stock.

A number of hedge funds have recently bought and sold shares of the business. Rehmann Capital Advisory Group increased its position in CMS Energy by 38.7% during the fourth quarter. Rehmann Capital Advisory Group now owns 8,084 shares of the utilities provider’s stock valued at $382,000 after acquiring an additional 2,254 shares during the last quarter. Xact Kapitalforvaltning AB increased its position in CMS Energy by 16.6% during the fourth quarter. Xact Kapitalforvaltning AB now owns 26,600 shares of the utilities provider’s stock valued at $1,258,000 after acquiring an additional 3,791 shares during the last quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp increased its position in CMS Energy by 2.0% during the fourth quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 340,050 shares of the utilities provider’s stock valued at $16,084,000 after acquiring an additional 6,546 shares during the last quarter. OLD Mutual Customised Solutions Proprietary Ltd. increased its position in CMS Energy by 39.2% during the fourth quarter. OLD Mutual Customised Solutions Proprietary Ltd. now owns 19,174 shares of the utilities provider’s stock valued at $907,000 after acquiring an additional 5,400 shares during the last quarter. Finally, Brookfield Asset Management Inc. boosted its stake in shares of CMS Energy by 56.7% during the fourth 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 during the period. Institutional investors and hedge funds own 88.31% of the company’s stock.

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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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