CMS Energy (NYSE:CMS) Price Target Lowered to $71.00 at Morgan Stanley

Key Points

• Morgan Stanley lowered its price target for CMS Energy from $73.00 to $71.00, maintaining an "equal weight" rating, reflecting a potential upside of only 1.00% from its current price.
• Despite the downgrade, other analysts have varying views: Barclays raised its price target to $78.00 with an "overweight" rating, while Wall Street Zen downgraded the stock to "sell."
• CMS Energy reported a 14.4% increase in revenue year-over-year, with earnings per share of $0.71, surpassing analysts' expectations of $0.67.

CMS Energy (NYSE:CMS - Get Free Report) had its target price cut by equities researchers at Morgan Stanley from $73.00 to $71.00 in a report issued on Thursday,Benzinga reports. The brokerage currently has an "equal weight" rating on the utilities provider's stock. Morgan Stanley's price objective indicates a potential upside of 1.00% from the stock's current price.

A number of other analysts also recently weighed in on CMS. Barclays lifted their price target on CMS Energy from $77.00 to $78.00 and gave the company an "overweight" rating in a research note on Tuesday, July 22nd. Wall Street Zen downgraded CMS Energy from a "hold" rating to a "sell" rating in a research note on Saturday, July 26th. Finally, Wolfe Research restated a "peer perform" rating on shares of CMS Energy in a research note on Monday, July 7th. Seven investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $77.25.

CMS Energy Stock Performance

Shares of NYSE:CMS traded down $1.36 during trading on Thursday, reaching $70.30. The company had a trading volume of 1,422,325 shares, compared to its average volume of 2,416,091. The firm has a market capitalization of $21.04 billion, a price-to-earnings ratio of 20.79, a price-to-earnings-growth ratio of 2.66 and a beta of 0.39. The company has a debt-to-equity ratio of 1.93, a current ratio of 1.00 and a quick ratio of 0.77. The stock's fifty day moving average price is $72.18 and its 200 day moving average price is $71.67. CMS Energy has a fifty-two week low of $63.97 and a fifty-two week high of $76.45.

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 (EPS) for the quarter, beating analysts' consensus estimates of $0.67 by $0.04. The business had revenue of $1.84 billion for the quarter, compared to analyst estimates of $1.68 billion. CMS Energy had a return on equity of 12.07% and a net margin of 12.76%.The company's revenue for the quarter was up 14.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.66 earnings per share. CMS Energy has set its FY 2025 guidance at 3.540-3.600 EPS. As a group, equities research analysts predict that CMS Energy will post 3.59 EPS for the current year.

Insiders Place Their Bets

In other news, SVP Brandon J. Hofmeister sold 2,000 shares of the business's stock in a transaction on 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 ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, SVP Lauren Y. Snyder sold 2,220 shares of the business's stock in a transaction on Friday, September 5th. The stock was 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 trade represents a 14.11% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 0.40% of the company's stock.

Hedge Funds Weigh In On CMS Energy

Institutional investors have recently added to or reduced their stakes in the business. AlphaQuest LLC increased its stake in CMS Energy by 285.5% in the first quarter. AlphaQuest LLC now owns 451 shares of the utilities provider's stock valued at $34,000 after purchasing an additional 334 shares during the last quarter. Trust Co. of Vermont increased its stake in CMS Energy by 127.7% in the second quarter. Trust Co. of Vermont now owns 535 shares of the utilities provider's stock valued at $37,000 after purchasing an additional 300 shares during the last quarter. Tobam increased its stake in CMS Energy by 35.0% in the second quarter. Tobam now owns 559 shares of the utilities provider's stock valued at $39,000 after purchasing an additional 145 shares during the last quarter. WPG Advisers LLC acquired a new position in CMS Energy in the first quarter valued at $47,000. Finally, CYBER HORNET ETFs LLC acquired a new position in CMS Energy in the second quarter valued at $53,000. 93.57% of the stock is currently owned by institutional investors and hedge funds.

CMS Energy Company Profile

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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