CMS Energy (NYSE:CMS) Stock Rated "Hold" in New Coverage at HSBC

Key Points

• HSBC initiated coverage of CMS Energy with a “Hold” rating and a $69 price target, implying about 1.27% upside from the reported $68.14 share price.
• Analyst sentiment remains cautious: the stock has a consensus “Hold” rating from 15 analysts, with an average price target of $77.76, while several firms have recently reduced targets or ratings.
• CMS Energy slightly exceeded quarterly EPS expectations, reporting $0.37 versus the $0.36 consensus, but revenue fell short of estimates and year-over-year revenue declined 0.5%. Institutional investors own 93.57% of the company.

HSBC assumed coverage on shares of CMS Energy (NYSE:CMS - Get Free Report) in a research report issued to clients and investors on Thursday, Marketbeat Ratings reports. The brokerage set a "hold" rating and a $69.00 price target on the utilities provider's stock. HSBC's price target would indicate a potential upside of 1.27% from the company's current price.

CMS has been the subject of a number of other reports. Barclays decreased their target price on CMS Energy from $81.00 to $72.00 and set an "overweight" rating for the company in a research report on Friday, October 16th. KeyCorp lowered shares of CMS Energy from an "overweight" rating to a "sector weight" rating in a research note on Thursday, July 23rd. Wall Street Zen upgraded shares of CMS Energy from a "strong sell" rating to a "sell" rating in a report on Sunday, July 5th. Capital One Financial set a $73.00 target price on shares of CMS Energy in a report on Tuesday, October 6th. Finally, Mizuho cut their target price on shares of CMS Energy from $78.00 to $77.00 and set a "neutral" rating on the stock in a research report on Wednesday, July 29th. Seven research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $77.76.

CMS Energy Price Performance

CMS Energy stock opened at $68.14 on Thursday. The company has a debt-to-equity ratio of 1.81, a current ratio of 0.94 and a quick ratio of 0.67. The stock has a market cap of $21.37 billion, a price-to-earnings ratio of 20.46, a price-to-earnings-growth ratio of 2.50 and a beta of 0.32. The firm has a 50-day moving average of $66.91 and a two-hundred day moving average of $71.81. CMS Energy has a 1 year low of $62.28 and a 1 year high of $80.36.

CMS Energy (NYSE:CMS - Get Free Report) last issued its earnings results on Tuesday, July 28th. The utilities provider reported $0.37 EPS for the quarter, topping analysts' consensus estimates of $0.36 by $0.01. CMS Energy had a net margin of 11.64% and a return on equity of 10.76%. The business had revenue of $1.83 billion for the quarter, compared to analyst estimates of $1.87 billion. During the same period last year, the company posted $0.71 earnings per share. The company's quarterly revenue was down .5% compared to the same quarter last year. CMS Energy has set its FY 2026 guidance at 4.080-4.170 EPS. On average, research analysts forecast that CMS Energy will post 3.87 earnings per share for the current year.

Hedge Funds Weigh In On CMS Energy

A number of large investors have recently added to or reduced their stakes in CMS. GQG Partners LLC purchased a new position in shares of CMS Energy in the 2nd quarter worth approximately $363,388,000. Magellan Asset Management Ltd purchased a new stake in CMS Energy during the second quarter valued at approximately $194,237,000. Legal & General Group Plc acquired a new stake in CMS Energy in the second quarter valued at approximately $189,370,000. Hsbc Holdings PLC acquired a new position in shares of CMS Energy during the second quarter worth $91,344,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in shares of CMS Energy during the 2nd quarter valued at $58,830,000. 93.57% of the stock is currently owned by institutional investors.

Trending Headlines about CMS Energy

Here are the key news stories impacting CMS Energy this week:

• Positive Sentiment: CMS Energy declared a quarterly dividend of $0.57 per share, payable December 1 to shareholders of record November 6. The annualized dividend is $2.28 per share, representing an indicated yield of approximately 3.3%. CMS Energy Declares Quarterly Dividend
• Positive Sentiment: Analysts expect CMS Energy’s upcoming earnings to benefit from conditions that could support a results beat, potentially improving sentiment if the company exceeds expectations. CMS Energy Earnings Expected to Grow
• Neutral Sentiment: CMS Energy recently traded near $68.14, below its 200-day moving average of $71.81 but above its 50-day average of $66.91. Its valuation and defensive utility profile may appeal to income-focused investors, while leverage remains elevated with a debt-to-equity ratio of 1.81.
• Negative Sentiment: Morgan Stanley lowered its CMS Energy price target from $77 to $73 and assigned an “equal weight” rating. Although the new target implies roughly 7.1% upside, the reduction signals less near-term appreciation potential and was likely the primary source of pressure on the stock. Morgan Stanley Adjusts CMS Energy Price Target
• Negative Sentiment: CMS Energy underperformed some utility-sector peers in the latest session, suggesting investors may be favoring competing utilities or expressing caution toward the company specifically. CMS Energy Underperforms Competitors

About CMS Energy

CMS Energy Corporation is an energy company headquartered in Jackson, Michigan. Through its principal subsidiary, Consumers Energy, the company provides electric and natural gas utility services to residential, commercial and industrial customers throughout Michigan.

Consumers Energy operates and maintains electric generation, transmission and distribution infrastructure, as well as natural gas storage and distribution systems. CMS Energy also conducts independent power generation and energy-related activities through its businesses focused on renewable energy, natural gas and other power projects.

Founded in 1987 as a holding company, CMS Energy traces its utility operations to Consumers Power Company, which was established in Michigan in the late 19th century.

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