CMS Energy Downgraded to Sell by StockNews.com

On Monday, analysts at StockNews.com announced that they have lowered their rating of CMS Energy (NYSE:CMS) from "hold" to "sell" in a research note directed at investors.

Recently, other analysts have also shared their insights regarding CMS Energy's stock performance. For instance, Bank of America raised its price target for CMS Energy shares from $69.00 to $73.00, maintaining a "buy" rating in their report dated August 29. Conversely, BMO Capital Markets adjusted their price target downward from $77.00 to $76.00, assigning an "outperform" rating.

Mizuho also made changes to their evaluation, switching from an "outperform" rating to a "neutral" rating, while lowering the price target from $76.00 to $72.00 on October 15. On the same day, Barclays increased their target price for CMS Energy from $65.00 to $68.00, maintaining an "equal weight" rating. Meanwhile, KeyCorp increased their target price from $73.00 to $76.00 with an "overweight" rating in their report issued on September 30.

Currently, one analyst rates the stock as a sell, six analysts have given it a hold rating, and nine analysts consider it a buy. According to data from MarketBeat.com, CMS Energy holds a consensus rating of "Moderate Buy" with an average target price of $69.85.

CMS Energy Stock Performance

On Monday, CMS Energy's stock rose by $0.09, reaching a price of $68.39. A total of 3,560,732 shares were traded, significantly higher than the average volume of 2,262,619. The utility company boasts a market capitalization of $20.43 billion, with a price-to-earnings (PE) ratio of 19.54 and a beta of 0.41.

The stock has seen a 52-week low of $54.27 and a high of $72.40. Financial metrics for the company also show a debt-to-equity ratio of 1.92, a current ratio of 1.61, and a quick ratio of 0.87.

CMS Energy most recently released its quarterly earnings report on October 31, announcing earnings per share (EPS) of $0.84, which surpassed the analysts' consensus estimate of $0.78 by $0.06. However, the reported revenue for the quarter was $1.74 billion, which fell short of the anticipated $1.88 billion. The company achieved a net margin of 14.01% and a return on equity of 12.81%. Year-over-year, revenue improved by 4.2%. Last year during the same period, CMS Energy reported an EPS of $0.61. Analysts are forecasting an EPS of 3.33 for the current year.

Institutional Inflows and Outflows

Several institutional investors have recently adjusted their holdings in CMS Energy. For instance, Private Advisor Group LLC increased its ownership of CMS shares by 33.1% in the first quarter and now holds 28,010 shares valued at approximately $1,690,000 after acquiring an additional 6,968 shares.

Mirae Asset Global Investments Co. Ltd. also increased its stake by 56.8%, now owning 74,719 shares valued at $4,511,000 after acquiring an additional 27,053 shares during the same period. Janney Montgomery Scott LLC raised its holdings by 1.1% to own 35,326 shares worth $2,132,000 after acquiring an additional 397 shares.

Tokio Marine Asset Management Co. Ltd. increased its investment in CMS Energy shares by 15.6%, now owning 8,669 shares worth $523,000 after buying an extra 1,169 shares. Additionally, Fidelis Capital Partners LLC purchased a new stake in CMS Energy valued at $89,000.

In total, institutional investors hold approximately 93.57% of CMS Energy's stock.

About CMS Energy

CMS Energy Corporation primarily operates as an energy provider in Michigan. The company functions through three segments: Electric Utility, Gas Utility, and Enterprises. The Electric Utility segment is responsible for generating, purchasing, transmitting, distributing, and selling electricity from a variety of sources, including coal, wind, gas, renewables, oil, and nuclear energy.

Energy, Stocks, Analysis