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

Key Points

• CMS Energy has an average analyst rating of “Moderate Buy” from 13 brokerages, with eight buy ratings and five hold ratings. The consensus 1-year price target is about $80.83.
• The company recently reported better-than-expected quarterly results, posting EPS of $1.13 versus the $1.11 estimate and revenue of $2.73 billion versus $2.46 billion expected. Revenue rose 11.6% year over year, and CMS also reaffirmed FY2026 EPS guidance of 3.83 to 3.90.
• CMS Energy announced a quarterly dividend of $0.57 per share, or $2.28 annually, for a yield of about 3.1%. The stock also saw mixed insider activity, with one executive selling shares and a director buying shares.

CMS Energy Corporation (NYSE:CMS - Get Free Report) has been given an average rating of "Moderate Buy" by the thirteen brokerages that are covering the company, MarketBeat 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 objective among brokers that have covered the stock in the last year is $80.8333.

A number of research firms have weighed in on CMS. Morgan Stanley set a $77.00 target price on shares of CMS Energy in a research note on Thursday. Jefferies Financial Group raised their target price on shares of CMS Energy from $79.00 to $81.00 and gave the stock a "buy" rating in a research note on Wednesday, January 28th. Barclays cut their price target on shares of CMS Energy from $81.00 to $79.00 and set an "overweight" rating for the company in a report on Wednesday, April 29th. KeyCorp raised their price target on shares of CMS Energy from $79.00 to $83.00 and gave the stock an "overweight" rating in a report on Monday, March 2nd. Finally, JPMorgan Chase & Co. cut their price target on shares of CMS Energy from $86.00 to $82.00 and set an "overweight" rating for the company in a report on Thursday, May 14th.

CMS Energy Trading Up 1.3%

CMS opened at $74.60 on Friday. The company has a debt-to-equity ratio of 1.80, a current ratio of 0.84 and a quick ratio of 0.66. The company's 50 day simple moving average is $76.09 and its two-hundred day simple moving average is $73.98. CMS Energy has a 1-year low of $68.37 and a 1-year high of $80.36. The firm has a market capitalization of $23.05 billion, a price-to-earnings ratio of 20.61, a price-to-earnings-growth ratio of 2.70 and a beta of 0.37.

CMS Energy (NYSE:CMS - Get Free Report) last released its earnings results on Tuesday, April 28th. The utilities provider reported $1.13 earnings per share for the quarter, topping analysts' consensus estimates of $1.11 by $0.02. CMS Energy had a net margin of 12.55% and a return on equity of 12.17%. The business had revenue of $2.73 billion for the quarter, compared to analyst estimates of $2.46 billion. During the same period last year, the company posted $1.02 EPS. The business's revenue was up 11.6% on a year-over-year basis. CMS Energy has set its FY 2026 guidance at 3.830-3.90 EPS. Analysts expect that CMS Energy will post 3.87 EPS for the current fiscal year.

CMS Energy Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, May 29th. Stockholders of record on Friday, May 8th will be issued a dividend of $0.57 per share. The ex-dividend date is Friday, May 8th. This represents a $2.28 dividend on an annualized basis and a dividend yield of 3.1%. CMS Energy's dividend payout ratio (DPR) is currently 62.98%.

Insider Transactions at CMS Energy

In other news, SVP Brandon J. Hofmeister sold 4,000 shares of the firm's stock in a transaction that occurred on Friday, February 27th. The shares were sold at an average price of $78.23, for a total transaction of $312,920.00. Following the completion of the sale, the senior vice president owned 70,670 shares in the company, valued at $5,528,514.10. This trade represents a 5.36% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Diane Leopold purchased 2,000 shares of the business's stock in a transaction dated Wednesday, February 25th. The shares were purchased at an average price of $76.70 per share, with a total value of $153,400.00. Following the acquisition, the director directly owned 2,769 shares in the company, valued at approximately $212,382.30. The trade was a 260.08% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders own 0.50% of the company's stock.

Institutional Trading of CMS Energy

Institutional investors have recently added to or reduced their stakes in the stock. Sound Income Strategies LLC raised its position in CMS Energy by 84.4% in the fourth quarter. Sound Income Strategies LLC now owns 343 shares of the utilities provider's stock valued at $25,000 after purchasing an additional 157 shares during the period. Elyxium Wealth LLC purchased a new stake in CMS Energy in the fourth quarter valued at approximately $29,000. DV Equities LLC purchased a new stake in CMS Energy in the fourth quarter valued at approximately $29,000. Covestor Ltd raised its position in CMS Energy by 52.0% in the third quarter. Covestor Ltd now owns 424 shares of the utilities provider's stock valued at $31,000 after purchasing an additional 145 shares during the period. Finally, MidFirst Bank purchased a new stake in CMS Energy in the fourth quarter valued at approximately $31,000. Institutional investors and hedge funds own 93.57% of the company's stock.

CMS Energy Company Profile

CMS Energy NYSE: CMS is an energy company based in Jackson, Michigan, whose principal business is the regulated utility operations of its subsidiary, Consumers Energy. The company is primarily focused on providing electric and natural gas service to customers in Michigan, operating the generation, transmission and distribution infrastructure necessary to deliver energy to residential, commercial and industrial customers. Headquartered in Jackson, CMS Energy conducts its core activities within the state and is regulated by state utility authorities.

Through Consumers Energy and related subsidiaries, CMS Energy develops, owns and operates a portfolio of generation assets and delivers a range of customer-facing services, including electricity and natural gas supply, grid management, energy efficiency programs and demand-response offerings.

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