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

Key Points

• CMS Energy has a consensus analyst rating of “Moderate Buy”, with 7 buy ratings and 5 hold ratings among 12 firms covering the stock. The average 1-year price target is about $80.17.
• The company beat first-quarter expectations, reporting EPS of $1.13 versus $1.11 expected and revenue of $2.73 billion versus $2.46 billion estimated. Revenue rose 11.6% year over year, and CMS reiterated FY2026 EPS guidance of 3.83 to 3.90.
• CMS Energy continues to offer income to shareholders with a quarterly dividend of $0.57 per share, or $2.28 annualized, for a yield of about 3.0%. The payout ratio stands at 62.98%.

CMS Energy Corporation (NYSE:CMS - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the twelve research firms that are presently covering the firm, MarketBeat Ratings reports. Five investment analysts have rated the stock with a hold recommendation and seven have assigned a buy recommendation to the company. The average 1-year price objective among brokerages that have issued a report on the stock in the last year is $80.1667.

CMS has been the subject of several research reports. Jefferies Financial Group cut shares of CMS Energy from a "buy" rating to a "hold" rating and lowered their price target for the stock from $88.00 to $74.00 in a research report on Thursday, June 4th. Morgan Stanley set a $77.00 price objective on shares of CMS Energy in a report on Thursday, May 21st. BMO Capital Markets reduced their price objective on shares of CMS Energy from $82.00 to $81.00 and set an "outperform" rating for the company in a research note on Thursday, June 4th. Wells Fargo & Company set a $80.00 target price on CMS Energy in a report on Tuesday, April 21st. Finally, Barclays dropped their target price on CMS Energy from $81.00 to $79.00 and set an "overweight" rating on the stock in a research report on Wednesday, April 29th.

CMS Energy Stock Performance

Shares of CMS Energy stock opened at $75.43 on Monday. The company has a current ratio of 0.84, a quick ratio of 0.66 and a debt-to-equity ratio of 1.80. The stock's fifty day moving average price is $74.12 and its 200-day moving average price is $74.44. The firm has a market cap of $23.30 billion, a P/E ratio of 20.84, a P/E/G ratio of 2.73 and a beta of 0.35. CMS Energy has a 12 month low of $68.64 and a 12 month high of $80.36.

CMS Energy (NYSE:CMS - Get Free Report) last released its quarterly earnings data 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. The company had revenue of $2.73 billion during the quarter, compared to analyst estimates of $2.46 billion. CMS Energy had a net margin of 12.55% and a return on equity of 12.17%. The firm's revenue for the quarter was up 11.6% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.02 earnings per share. CMS Energy has set its FY 2026 guidance at 3.830-3.90 EPS. On average, equities research analysts expect that CMS Energy will post 3.87 earnings per share for the current fiscal year.

CMS Energy Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, May 29th. Investors of record on Friday, May 8th were paid a dividend of $0.57 per share. This represents a $2.28 dividend on an annualized basis and a dividend yield of 3.0%. The ex-dividend date was Friday, May 8th. CMS Energy's dividend payout ratio is 62.98%.

Insiders Place Their Bets

In related news, SVP Brandon J. Hofmeister sold 3,000 shares of the firm's stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $74.31, for a total transaction of $222,930.00. Following the sale, the senior vice president owned 67,111 shares of the company's stock, valued at $4,987,018.41. This trade represents a 4.28% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.50% of the stock is currently owned by insiders.

Institutional Trading of CMS Energy

Hedge funds have recently modified their holdings of the company. Sound Income Strategies LLC raised its stake in shares of CMS Energy by 84.4% during the 4th quarter. Sound Income Strategies LLC now owns 343 shares of the utilities provider's stock worth $25,000 after acquiring an additional 157 shares in the last quarter. Scarborough Advisors LLC purchased a new stake in CMS Energy during the first quarter valued at approximately $31,000. Elyxium Wealth LLC acquired a new stake in CMS Energy in the fourth quarter valued at approximately $29,000. DV Equities LLC acquired a new stake in CMS Energy in the fourth quarter valued at approximately $29,000. Finally, MidFirst Bank purchased a new position in CMS Energy in the fourth quarter worth $31,000. 93.57% of the stock is owned by hedge funds and other institutional investors.

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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