Zacks Investment Research Downgrades Edison International (EIX) to Hold
Edison International (NYSE:EIX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Friday.
According to Zacks, “Edison International remains focused on its transmission and distribution infrastructural development programs, and expansion of its operations. Its SCE unit targets average annual rate base and earnings growth of 7% through 2017 driven by infrastructural investment. In addition, Edison International boasts a solid financial position backed by strong cash generation capacity. Also, the company presents a lower risk profile compared to its utility-only peers, with a strong portfolio of regulated utility assets and well-managed merchant energy operations. However, any change in environmental rules, adverse decision of regulatory bodies, and power and coal price volatility are causes of concern. Moreover, any adverse decision on a General Rate Case (GRC) will greatly affect the utility's earnings growth, the company’s performance is subject to approvals from regulatory bodies.”
EIX has been the topic of a number of other research reports. Evercore ISI cut shares of Edison International from a “buy” rating to a “hold” rating and boosted their target price for the company from $70.00 to $79.00 in a report on Wednesday, July 6th. Jefferies Group restated a “hold” rating on shares of Edison International in a report on Monday, July 11th. Argus restated a “buy” rating and set a $86.00 target price (up previously from $83.00) on shares of Edison International in a report on Tuesday, July 5th. Citigroup Inc. boosted their target price on shares of Edison International from $70.00 to $79.00 and gave the company a “neutral” rating in a report on Wednesday, July 20th. Finally, BMO Capital Markets restated an “outperform” rating and set a $82.00 target price (up previously from $79.00) on shares of Edison International in a report on Monday, August 1st. Ten analysts have rated the stock with a hold rating and six have assigned a buy rating to the stock. The company has a consensus rating of “Hold” and a consensus price target of $76.79.
Shares of Edison International (NYSE:EIX) opened at 71.22 on Friday. The stock has a market cap of $23.20 billion, a P/E ratio of 26.41 and a beta of 0.23. The company’s 50-day moving average is $72.38 and its 200-day moving average is $73.16. Edison International has a 12-month low of $57.51 and a 12-month high of $78.72.
Edison International (NYSE:EIX) last issued its quarterly earnings data on Thursday, July 28th. The company reported $0.85 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.97 by $0.12. The company had revenue of $2.78 billion for the quarter, compared to analysts’ expectations of $3.18 billion. Edison International had a net margin of 8.56% and a return on equity of 9.13%. The firm’s revenue for the quarter was down 4.5% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.16 earnings per share. On average, equities research analysts anticipate that Edison International will post $3.91 earnings per share for the current year.
The firm also recently declared a quarterly dividend, which will be paid on Monday, October 31st. Stockholders of record on Friday, September 30th will be given a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a dividend yield of 2.70%. The ex-dividend date is Wednesday, September 28th. Edison International’s payout ratio is currently 71.11%.
In other news, insider Ronald L. Litzinger sold 38,084 shares of the company’s stock in a transaction dated Monday, September 12th. The shares were sold at an average price of $72.10, for a total transaction of $2,745,856.40. Following the completion of the sale, the insider now owns 12,053 shares of the company’s stock, valued at approximately $869,021.30. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Jagjeet S. Bindra sold 3,995 shares of the company’s stock in a transaction dated Wednesday, September 7th. The shares were sold at an average price of $73.80, for a total transaction of $294,831.00. The disclosure for this sale can be found here. Insiders own 1.51% of the company’s stock.
Several large investors have recently added to or reduced their stakes in EIX. Pacad Investment Ltd. acquired a new stake in Edison International during the second quarter valued at approximately $109,000. Pinkerton Retirement Specialists LLC acquired a new stake in Edison International during the second quarter valued at approximately $130,000. Integrated Investment Consultants LLC raised its stake in Edison International by 9.3% in the second quarter. Integrated Investment Consultants LLC now owns 2,001 shares of the company’s stock valued at $155,000 after buying an additional 170 shares during the last quarter. Invictus RG acquired a new stake in Edison International during the first quarter valued at approximately $178,000. Finally, Washington Trust Bank raised its stake in Edison International by 0.9% in the third quarter. Washington Trust Bank now owns 2,777 shares of the company’s stock valued at $201,000 after buying an additional 25 shares during the last quarter. 81.90% of the stock is owned by hedge funds and other institutional investors.
Edison International Company Profile
Edison International is the parent holding company of Southern California Edison Company (SCE). SCE is engaged in the business of supplying and delivering electricity to an approximately 50,000 square mile area of southern California. It is also the parent company of subsidiaries that are engaged in competitive businesses focused on providing energy services to commercial and industrial customers, including distributed resources, engaging in transmission opportunities, and exploring distributed water treatment and recycling.
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