CMS Energy Corporation (NYSE:CMS) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• CMS Energy Corporation has received a consensus rating of "Moderate Buy" from 13 research firms, with a 1-year price target averaging $77.25.
• Insiders have recently sold shares, with a notable sale by SVP Brandon J. Hofmeister of 2,000 shares at an average price of $73.62, reflecting a decrease in their position.
• The company reported $1.84 billion in revenue for the last quarter, surpassing analyst estimates, and declared a quarterly dividend of $0.5425, yielding 3.0%.

Shares of CMS Energy Corporation (NYSE:CMS - Get Free Report) have been assigned a consensus recommendation of "Moderate Buy" from the thirteen research firms that are currently covering the company, Marketbeat Ratings reports. Five analysts have rated the stock with a hold recommendation and eight have issued a buy recommendation on the company. The average 1 year price target among brokerages that have issued ratings on the stock in the last year is $77.25.

Several brokerages recently issued reports on CMS. Barclays boosted their price objective on shares of CMS Energy from $77.00 to $78.00 and gave the company an "overweight" rating in a report on Tuesday, July 22nd. Wall Street Zen lowered shares of CMS Energy from a "hold" rating to a "sell" rating in a report on Saturday, July 26th. Morgan Stanley reaffirmed an "outperform" rating on shares of CMS Energy in a research report on Thursday, August 21st. Finally, Wolfe Research reaffirmed a "peer perform" rating on shares of CMS Energy in a research report on Monday, July 7th.

Insider Activity

In other CMS Energy news, SVP Brandon J. Hofmeister sold 2,000 shares of CMS Energy stock in a transaction dated Friday, August 8th. The stock was sold at an average price of $73.62, for a total value of $147,240.00. Following the completion of the transaction, the senior vice president directly owned 68,036 shares of the company's stock, valued at $5,008,810.32. The trade was a 2.86% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, SVP Lauren Y. Snyder sold 2,220 shares of CMS Energy stock in a transaction dated Friday, September 5th. The shares were sold at an average price of $71.26, for a total value of $158,197.20. Following the completion of the transaction, the senior vice president directly owned 13,512 shares of the company's stock, valued at approximately $962,865.12. This represents a 14.11% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 0.49% of the company's stock.

Hedge Funds Weigh In On CMS Energy

Institutional investors have recently bought and sold shares of the company. AlphaQuest LLC grew its position in shares of CMS Energy by 285.5% during the first quarter. AlphaQuest LLC now owns 451 shares of the utilities provider's stock worth $34,000 after buying an additional 334 shares in the last quarter. Trust Co. of Vermont grew its position in shares of CMS Energy by 127.7% during the second quarter. Trust Co. of Vermont now owns 535 shares of the utilities provider's stock worth $37,000 after buying an additional 300 shares in the last quarter. Tobam grew its position in shares of CMS Energy by 35.0% during the second quarter. Tobam now owns 559 shares of the utilities provider's stock worth $39,000 after buying an additional 145 shares in the last quarter. WPG Advisers LLC acquired a new position in shares of CMS Energy during the first quarter worth about $47,000. Finally, CYBER HORNET ETFs LLC acquired a new position in shares of CMS Energy during the second quarter worth about $53,000. 93.57% of the stock is owned by institutional investors and hedge funds.

CMS Energy Stock Down 0.1%

Shares of CMS opened at $71.64 on Tuesday. The firm has a market cap of $21.44 billion, a P/E ratio of 21.20, a price-to-earnings-growth ratio of 2.66 and a beta of 0.39. CMS Energy has a 12-month low of $63.97 and a 12-month high of $76.45. The company's 50-day moving average price is $72.13 and its 200 day moving average price is $71.76. The company has a current ratio of 1.00, a quick ratio of 0.77 and a debt-to-equity ratio of 1.93.

CMS Energy (NYSE:CMS - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The utilities provider reported $0.71 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.67 by $0.04. The firm had revenue of $1.84 billion for the quarter, compared to analyst estimates of $1.68 billion. CMS Energy had a net margin of 12.76% and a return on equity of 12.07%. CMS Energy's revenue was up 14.4% on a year-over-year basis. During the same period in the previous year, the firm earned $0.66 EPS. CMS Energy has set its FY 2025 guidance at 3.540-3.600 EPS. On average, sell-side analysts forecast that CMS Energy will post 3.59 earnings per share for the current year.

CMS Energy Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, August 29th. Shareholders of record on Friday, August 8th were given a $0.5425 dividend. This represents a $2.17 annualized dividend and a yield of 3.0%. The ex-dividend date of this dividend was Friday, August 8th. CMS Energy's payout ratio is currently 64.20%.

About CMS Energy

CMS Energy Corporation operates as an energy company primarily in Michigan. The company operates through three segments: Electric Utility; Gas Utility; and Enterprises. The Electric Utility segment is involved in the generation, purchase, transmission, distribution, and sale of electricity. This segment generates electricity through coal, wind, gas, renewable energy, oil, and nuclear sources.

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