Analysts at Wall Street Zen have downgraded CMS Energy (NYSE: CMS) from a “hold” rating to a “sell” rating. This change, announced in a report released on October 28, 2023, reflects ongoing shifts in market sentiment surrounding the utility company. Other analysts have also recently weighed in on CMS Energy, indicating a mixed outlook among financial experts.
On October 24, Wells Fargo & Company upgraded CMS Energy to a “hold” rating, while KeyCorp increased its price target for the stock from $76.00 to $79.00, assigning it an “overweight” rating. Weiss Ratings maintained a “buy (B-)” rating for the company as well. Meanwhile, JPMorgan Chase & Co. cut its target price from $85.00 to $80.00, keeping the “overweight” rating. Barclays also raised its price target from $78.00 to $82.00 with an “overweight” designation.
As of now, nine research analysts have rated CMS Energy with a “buy” rating, while five have given it a “hold” rating. According to data from MarketBeat.com, the consensus rating for the stock stands at “Moderate Buy” with a consensus price target of $78.50.
Strong Earnings Report and Future Guidance
CMS Energy recently released its earnings results on October 30, 2023. The utility provider reported earnings of $0.93 per share for the quarter, surpassing analysts’ expectations of $0.86 by $0.07. The company generated revenue of $2.02 billion, exceeding the consensus estimate of $1.83 billion. This marks a 15.9% increase in revenue compared to the same quarter last year.
The company achieved a net margin of 12.62% and a return on equity of 12.10%. For fiscal year 2026, CMS Energy has projected earnings per share guidance between $3.800 and $3.870, while the guidance for fiscal year 2025 is set between $3.560 and $3.600. Analysts anticipate that CMS Energy will report earnings of $3.59 per share for the current fiscal year.
Insider Trading and Institutional Investment Activity
In related news, Senior Vice President Brandon J. Hofmeister sold 4,000 shares of CMS Energy on November 3, 2023, at an average price of $72.47, resulting in a total transaction value of $289,880.00. Following this sale, Hofmeister’s ownership in CMS Energy decreased by 5.86%, leaving him with 64,259 shares valued at approximately $4,656,849.73. Insider ownership currently accounts for 0.49% of the company’s stock.
Several hedge funds have made significant moves regarding CMS Energy recently. Norges Bank acquired a new stake in the company during the second quarter, valued at approximately $238.95 million. Price T. Rowe Associates, Inc. increased its holdings by 16.1% in the first quarter, owning 16,554,877 shares worth approximately $1.24 billion after purchasing an additional 2,297,928 shares.
Qube Research & Technologies Ltd expanded its position in CMS Energy by a remarkable 1,048.7% during the second quarter, now owning 1,460,924 shares valued at $101.21 million. Soroban Capital Partners LP raised its stake by 215.8%, obtaining 1,435,170 shares worth $99.43 million. Lastly, UBS Asset Management Americas LLC increased its holdings by 29.8% in the first quarter, now owning 3,407,152 shares valued at approximately $255.91 million. Institutional investors now own 93.57% of CMS Energy’s stock.
CMS Energy, headquartered in Michigan, operates as an energy company through three primary segments: Electric Utility, Gas Utility, and Enterprises. The Electric Utility segment engages in the generation, purchase, transmission, distribution, and sale of electricity, utilizing various sources including coal, wind, gas, renewable energy, oil, and nuclear power.
