CMS Energy Corporation (NYSE:CMS) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• CMS Energy Corporation has received an average rating of "Moderate Buy" from analysts, with six hold ratings and seven buy ratings among the thirteen research firms reviewing the stock.
• The company reported $0.71 earnings per share for the last quarter, exceeding analysts' expectations of $0.67, with a revenue of $1.84 billion, up 14.4% year-over-year.
• CMS Energy announced a quarterly dividend of $0.5425 per share, yielding 2.9%, with a dividend payout ratio currently at 64.20%.

Shares of CMS Energy Corporation (NYSE:CMS - Get Free Report) have earned an average recommendation of "Moderate Buy" from the thirteen research firms that are covering the firm, MarketBeat reports. Six investment analysts have rated the stock with a hold rating and seven have given a buy rating to the company. The average 12-month price objective among brokers that have updated their coverage on the stock in the last year is $77.3636.

Several equities research analysts have weighed in on the company. Wolfe Research reissued a "peer perform" rating on shares of CMS Energy in a report on Monday, July 7th. Barclays raised their price target on CMS Energy from $77.00 to $78.00 and gave the stock an "overweight" rating in a report on Tuesday, July 22nd. Wall Street Zen downgraded CMS Energy from a "hold" rating to a "sell" rating in a report on Saturday, July 26th. Weiss Ratings reissued a "buy (b-)" rating on shares of CMS Energy in a report on Wednesday. Finally, Morgan Stanley lowered their price target on CMS Energy from $73.00 to $71.00 and set an "equal weight" rating for the company in a report on Thursday, September 25th.

CMS Energy Stock Performance

NYSE:CMS opened at $74.01 on Friday. The stock's fifty day moving average is $72.21 and its 200 day moving average is $71.66. CMS Energy has a fifty-two week low of $63.97 and a fifty-two week high of $76.45. The firm has a market capitalization of $22.15 billion, a PE ratio of 21.90, a PEG ratio of 2.72 and a beta of 0.40. The company has a debt-to-equity ratio of 1.93, a quick ratio of 0.77 and a current ratio of 1.00.

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

CMS Energy Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, August 29th. Shareholders of record on Friday, August 8th were issued a $0.5425 dividend. This represents a $2.17 annualized dividend and a yield of 2.9%. The ex-dividend date was Friday, August 8th. CMS Energy's dividend payout ratio is presently 64.20%.

Insiders Place Their Bets

In other CMS Energy news, SVP Brandon J. Hofmeister sold 2,000 shares of the 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 sale, the senior vice president owned 68,036 shares of the company's stock, valued at $5,008,810.32. This trade represents a 2.86% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, SVP Lauren Y. Snyder sold 2,220 shares of CMS Energy stock in a transaction that occurred on 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 owned 13,512 shares in the company, valued at $962,865.12. This trade represents a 14.11% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 0.40% of the company's stock.

Institutional Trading of CMS Energy

Several hedge funds have recently modified their holdings of the business. Vanguard Group Inc. lifted its holdings in shares of CMS Energy by 1.8% in the 2nd quarter. Vanguard Group Inc. now owns 39,044,129 shares of the utilities provider's stock valued at $2,704,977,000 after buying an additional 702,713 shares during the period. Price T Rowe Associates Inc. MD lifted its holdings in shares of CMS Energy by 16.1% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 16,554,877 shares of the utilities provider's stock valued at $1,243,438,000 after buying an additional 2,297,928 shares during the period. Geode Capital Management LLC lifted its holdings in shares of CMS Energy by 1.6% in the 2nd quarter. Geode Capital Management LLC now owns 8,020,765 shares of the utilities provider's stock valued at $553,440,000 after buying an additional 130,059 shares during the period. Goldman Sachs Group Inc. lifted its holdings in shares of CMS Energy by 20.2% in the 1st quarter. Goldman Sachs Group Inc. now owns 4,483,585 shares of the utilities provider's stock valued at $336,762,000 after buying an additional 753,173 shares during the period. Finally, Norges Bank acquired a new stake in shares of CMS Energy in the 2nd quarter valued at approximately $238,951,000. 93.57% of the stock is owned by institutional investors and hedge funds.

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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