Edison International (NYSE:EIX) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Tuesday.
According to Zacks, “Edison International’s performance is subject to approvals from regulatory bodies like California Public Utilities Commission (CPUC) and Federal Energy Regulatory Commission (FERC). Moreover adverse decision taken by ORA in April, on SCE’s 2018 General Rate Case will affect the utility's earnings growth. Further, the company's share price has underperformed the broader industry’s price over a year. Edison International has not increased its hedging exposure for either its energy output or for its coal requirement over the years, which indicates that it expects higher energy prices and lower coal prices in the future. Nevertheless, the company boasts a solid financial position backed by strong cash generation capacity.”
A number of other equities analysts have also recently issued reports on EIX. SunTrust Banks restated a “buy” rating and set a $89.00 price objective on shares of Edison International in a report on Monday, October 2nd. Mizuho restated a “buy” rating and set a $86.00 price objective on shares of Edison International in a report on Monday, October 9th. Citigroup boosted their price objective on Edison International from $84.00 to $87.00 and gave the company a “neutral” rating in a report on Tuesday, October 17th. Royal Bank of Canada restated a “buy” rating and set a $84.00 price objective on shares of Edison International in a report on Sunday, September 17th. Finally, Morgan Stanley dropped their price objective on Edison International from $96.00 to $82.00 and set an “equal weight” rating for the company in a report on Wednesday, December 13th. Two research analysts have rated the stock with a sell rating, eleven have issued a hold rating and five have issued a buy rating to the stock. The company has an average rating of “Hold” and an average price target of $81.64.
Edison International (NYSE:EIX) last posted its quarterly earnings data on Monday, October 30th. The utilities provider reported $1.43 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.33 by $0.10. Edison International had a return on equity of 10.84% and a net margin of 13.18%. The company had revenue of $3.67 billion during the quarter, compared to analysts’ expectations of $3.53 billion. During the same quarter in the previous year, the business earned $1.29 EPS. Edison International’s revenue was down 2.5% compared to the same quarter last year. sell-side analysts anticipate that Edison International will post 4.33 EPS for the current fiscal year.
In other news, insider Ronald L. Litzinger sold 224,718 shares of the business’s stock in a transaction on Wednesday, November 15th. The stock was sold at an average price of $82.00, for a total value of $18,426,876.00. Following the completion of the transaction, the insider now directly owns 14,121 shares of the company’s stock, valued at approximately $1,157,922. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. 0.41% of the stock is currently owned by corporate insiders.
Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Victory Capital Management Inc. increased its position in Edison International by 7.6% during the 2nd quarter. Victory Capital Management Inc. now owns 66,741 shares of the utilities provider’s stock valued at $5,218,000 after buying an additional 4,690 shares in the last quarter. Pacer Advisors Inc. increased its position in Edison International by 8.6% during the 2nd quarter. Pacer Advisors Inc. now owns 6,987 shares of the utilities provider’s stock valued at $546,000 after buying an additional 551 shares in the last quarter. Principal Financial Group Inc. increased its position in Edison International by 1.9% during the 2nd quarter. Principal Financial Group Inc. now owns 655,277 shares of the utilities provider’s stock valued at $51,236,000 after buying an additional 12,086 shares in the last quarter. State of Tennessee Treasury Department increased its position in Edison International by 13.9% during the 2nd quarter. State of Tennessee Treasury Department now owns 207,128 shares of the utilities provider’s stock valued at $16,195,000 after buying an additional 25,261 shares in the last quarter. Finally, Synovus Financial Corp increased its position in Edison International by 2.7% during the 2nd quarter. Synovus Financial Corp now owns 5,502 shares of the utilities provider’s stock valued at $427,000 after buying an additional 144 shares in the last quarter. 81.14% of the stock is owned by hedge funds and other institutional investors.
About Edison International
Edison International is the holding company of Southern California Edison Company (SCE). As of December 31, 2016, SCE, a public utility, was primarily engaged in the business of supplying and delivering electricity to an approximately 50,000 square mile area of southern California. The Company is also the parent company of Edison Energy Group, Inc (Edison Energy Group), a holding company for subsidiaries engaged in pursuing competitive business opportunities across energy services and distributed solar to commercial and industrial customers.
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