CMS Energy (CMS) Upgraded to Buy by Zacks Investment Research

CMS Energy (NYSE:CMS) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Monday. The brokerage currently has a $56.00 price objective on the utilities provider’s stock. Zacks Investment Research‘s target price points to a potential upside of 12.61% from the stock’s current price.

According to Zacks, “In a year, shares of CMS Energy has outperformed its industry. CMS Energy's regulated electric power operations in Michigan generate a relatively stable and growing earnings stream. CMS Energy boasts a solid capital expenditure program, under which it plans to spend $10.1 billion on infrastructure upgrades and replacements and electric supply projects from 2018 through 2022. It is currently focused on capacity maximization, reliability improvement, clean power generation and infrastructure upgrade. Moreover, CMS Energy boasts a solid capital expenditure program. However, the company incurs significant costs related to the construction, operation and closure of solid waste disposal facilities for coal ash. Also, an adverse decision in regulatory cases might negatively impact CMS Energy’s earnings.”

Several other research firms also recently commented on CMS. Scotiabank reiterated a “buy” rating and issued a $54.00 target price on shares of CMS Energy in a research report on Friday, December 14th. Guggenheim reiterated a “hold” rating and issued a $53.00 target price on shares of CMS Energy in a research report on Monday, January 7th. Wolfe Research downgraded CMS Energy from an “outperform” rating to a “market perform” rating in a research report on Friday, October 26th. ValuEngine upgraded CMS Energy from a “hold” rating to a “buy” rating in a research report on Wednesday, October 24th. Finally, Bank of America downgraded CMS Energy from a “buy” rating to a “neutral” rating and dropped their target price for the company from $53.00 to $52.00 in a research report on Friday, October 12th. They noted that the move was a valuation call. Eight research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the stock. The company currently has a consensus rating of “Buy” and a consensus price target of $52.64.

NYSE:CMS opened at $49.73 on Monday. The stock has a market capitalization of $13.84 billion, a P/E ratio of 22.92, a price-to-earnings-growth ratio of 3.15 and a beta of 0.13. The company has a current ratio of 0.69, a quick ratio of 0.47 and a debt-to-equity ratio of 1.87. CMS Energy has a twelve month low of $40.48 and a twelve month high of $53.82.

CMS Energy (NYSE:CMS) last posted its earnings results on Thursday, October 25th. The utilities provider reported $0.59 EPS for the quarter, beating the consensus estimate of $0.57 by $0.02. The firm had revenue of $1.60 billion during the quarter, compared to the consensus estimate of $1.53 billion. CMS Energy had a return on equity of 14.88% and a net margin of 8.00%. During the same period last year, the company earned $0.62 earnings per share. Equities analysts predict that CMS Energy will post 2.34 EPS for the current fiscal year.

In other news, SVP Brian F. Rich sold 4,000 shares of the firm’s stock in a transaction dated Tuesday, October 30th. The stock was sold at an average price of $49.69, for a total transaction of $198,760.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Brandon J. Hofmeister sold 500 shares of the firm’s stock in a transaction dated Tuesday, November 20th. The stock was sold at an average price of $51.88, for a total value of $25,940.00. The disclosure for this sale can be found here. 0.57% of the stock is owned by company insiders.

Several institutional investors and hedge funds have recently modified their holdings of CMS. Manning & Napier Group LLC grew its stake in CMS Energy by 3.8% during the third quarter. Manning & Napier Group LLC now owns 28,266 shares of the utilities provider’s stock worth $1,384,000 after purchasing an additional 1,045 shares during the period. Cerebellum GP LLC acquired a new stake in CMS Energy during the fourth quarter worth approximately $57,000. Cognios Capital LLC grew its stake in CMS Energy by 2.1% during the second quarter. Cognios Capital LLC now owns 57,394 shares of the utilities provider’s stock worth $2,712,000 after purchasing an additional 1,198 shares during the period. State Board of Administration of Florida Retirement System grew its stake in CMS Energy by 0.4% during the third quarter. State Board of Administration of Florida Retirement System now owns 445,179 shares of the utilities provider’s stock worth $21,814,000 after purchasing an additional 1,694 shares during the period. Finally, Pacer Advisors Inc. grew its stake in CMS Energy by 14.1% during the third quarter. Pacer Advisors Inc. now owns 14,903 shares of the utilities provider’s stock worth $730,000 after purchasing an additional 1,836 shares during the period. Institutional investors own 92.83% of the company’s stock.

About CMS Energy

CMS Energy Corporation operates as an energy company primarily in Michigan. It operates through three segments: Electric Utility, Gas Utility, and Enterprises. The Electric Utility segment engages in the generation, purchase, transmission, distribution, and sale of electricity. It generates electricity through fossil-fuel-fired plants, as well as renewable energy and nuclear sources.

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