Edison International (NYSE:EIX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued 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 several other research reports. Deutsche Bank AG set a $78.00 price objective on shares of Edison International and gave the stock a “hold” rating in a research note on Sunday, September 4th. Jefferies Group restated a “hold” rating and issued a $80.00 price objective on shares of Edison International in a research note on Friday, September 2nd. BMO Capital Markets restated an “outperform” rating and issued a $82.00 price objective (up previously from $79.00) on shares of Edison International in a research note on Monday, August 1st. Argus lowered 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. Finally, Citigroup Inc. lowered 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. Ten research analysts have rated the stock with a hold rating and six have assigned a buy rating to the stock. Edison International has a consensus rating of “Hold” and an average price target of $76.79.
Shares of Edison International (NYSE:EIX) traded up 0.15% during mid-day trading on Friday, hitting $71.12. 458,669 shares of the company’s stock were exchanged. Edison International has a 52 week low of $57.51 and a 52 week high of $78.72. The company has a market capitalization of $23.17 billion, a price-to-earnings ratio of 26.37 and a beta of 0.23. The firm has a 50 day moving average price of $72.48 and a 200-day moving average price of $73.15.
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 Zacks’ consensus estimate of $0.97 by $0.12. Edison International had a net margin of 8.56% and a return on equity of 9.13%. The firm earned $2.78 billion during the quarter, compared to the consensus estimate of $3.18 billion. During the same period in the prior year, the business earned $1.16 EPS. The company’s revenue for the quarter was down 4.5% compared to the same quarter last year. On average, equities analysts anticipate that Edison International will post $3.91 EPS for the current year.
The firm also recently declared a quarterly dividend, which will be paid on Monday, October 31st. Investors of record on Friday, September 30th will be issued 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 2.70%. Edison International’s dividend payout ratio is 71.11%.
In related news, insider Ronald L. Litzinger sold 38,084 shares of Edison International stock in a transaction dated Monday, September 12th. The stock was sold at an average price of $72.10, for a total value of $2,745,856.40. Following the completion of the transaction, the insider now directly owns 12,053 shares of the company’s stock, valued at $869,021.30. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Ellen O. Tauscher sold 3,012 shares of Edison International stock in a transaction dated Wednesday, September 14th. The shares were sold at an average price of $71.87, for a total value of $216,472.44. The disclosure for this sale can be found here. 1.51% of the stock is owned by corporate insiders.
Several hedge funds and other institutional investors have recently added to or reduced their stakes in EIX. Benjamin F. Edwards & Company Inc. boosted its position in Edison International by 0.6% in the second quarter. Benjamin F. Edwards & Company Inc. now owns 2,898 shares of the company’s stock worth $225,000 after buying an additional 16 shares in the last quarter. Baystate Wealth Management LLC boosted its stake in shares of Edison International by 0.5% in the third quarter. Baystate Wealth Management LLC now owns 3,042 shares of the company’s stock valued at $220,000 after buying an additional 16 shares in the last quarter. Washington Trust Bank boosted its stake in shares of 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 in the last quarter. Security National Trust Co. boosted its stake in shares of Edison International by 0.5% in the second quarter. Security National Trust Co. now owns 6,390 shares of the company’s stock valued at $496,000 after buying an additional 30 shares in the last quarter. Finally, Wetherby Asset Management Inc. boosted its stake in shares of Edison International by 0.9% in the second quarter. Wetherby Asset Management Inc. now owns 3,361 shares of the company’s stock valued at $261,000 after buying an additional 30 shares in the last quarter. 81.95% of the stock is owned by institutional investors and hedge funds.
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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