Zacks Investment Research upgraded shares of Edison International (NYSE:EIX) from a hold rating to a buy rating in a research report released on Thursday. They currently have $78.00 price target on the stock.
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. However, 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. Meanwhile, 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.”
Several other analysts have also commented on EIX. Deutsche Bank AG set a $78.00 price target on shares of Edison International and gave the company a hold rating in a research report on Sunday, September 4th. Jefferies Group increased their price target on shares of Edison International from $72.00 to $80.00 and gave the company a hold rating in a research report on Friday, July 29th. Citigroup Inc. reduced their price objective on shares of Edison International from $79.00 to $76.00 and set a neutral rating on the stock in a research note on Tuesday, October 4th. SunTrust Banks Inc. upped their price objective on shares of Edison International from $82.00 to $84.00 and gave the company a buy rating in a research note on Monday, September 26th. Finally, Argus reduced their price objective on shares of Edison International from $86.00 to $81.00 and set a buy rating on the stock in a research note on Tuesday, October 4th. Ten investment analysts have rated the stock with a hold rating and six have given a buy rating to the company. The stock currently has an average rating of Hold and a consensus target price of $76.79.
Shares of Edison International (NYSE:EIX) opened at 72.07 on Thursday. The firm has a market capitalization of $23.48 billion, a PE ratio of 26.72 and a beta of 0.23. The company has a 50-day moving average price of $72.36 and a 200 day moving average price of $73.17. Edison International has a 12-month low of $57.51 and a 12-month high of $78.72.
Edison International (NYSE:EIX) last released its quarterly earnings results on Thursday, July 28th. The company reported $0.85 EPS for the quarter, missing the consensus estimate of $0.97 by $0.12. The business earned $2.78 billion during the quarter, compared to analyst estimates 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 quarter in the prior year, the company earned $1.16 earnings per share. On average, equities analysts expect that Edison International will post $3.91 earnings per share for the current year.
The company also recently declared a quarterly dividend, which will be paid on Monday, October 31st. Investors of record on Friday, September 30th will be given a $0.48 dividend. The ex-dividend date of this dividend is Wednesday, September 28th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 2.66%. Edison International’s dividend payout ratio is 71.11%.
In related news, insider Ronald L. Litzinger sold 38,084 shares of the stock in a transaction that occurred on Monday, September 12th. The shares were sold at an average price of $72.10, for a total value of $2,745,856.40. Following the sale, the insider now directly owns 12,053 shares in the company, valued at approximately $869,021.30. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Ellen O. Tauscher sold 3,012 shares of the stock in a transaction that occurred on Wednesday, September 14th. The shares were sold at an average price of $71.87, for a total transaction of $216,472.44. The disclosure for this sale can be found here. 1.51% of the stock is currently owned by corporate insiders.
Hedge funds have recently made changes to their positions in the stock. Parametric Risk Advisors LLC purchased a new stake in shares of Edison International during the first quarter worth $362,000. Pictet Asset Management Ltd. increased its stake in shares of Edison International by 3.6% in the first quarter. Pictet Asset Management Ltd. now owns 2,870,151 shares of the company’s stock valued at $195,630,000 after buying an additional 100,358 shares during the period. Quadrature Capital Ltd bought a new stake in shares of Edison International during the first quarter valued at approximately $1,554,000. UBS Asset Management Americas Inc. increased its stake in shares of Edison International by 9.5% in the first quarter. UBS Asset Management Americas Inc. now owns 1,036,890 shares of the company’s stock valued at $74,542,000 after buying an additional 90,026 shares during the period. Finally, UBS Group AG increased its stake in shares of Edison International by 93.0% in the first quarter. UBS Group AG now owns 139,194 shares of the company’s stock valued at $10,007,000 after buying an additional 67,060 shares during the period. Institutional investors and hedge funds own 81.90% of the company’s stock.
About Edison International
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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