CMS Energy (NYSE:CMS) Sets New 52-Week Low on Analyst Downgrade

Key Points

• CMS Energy shares fell to a new 52-week low of $68.59 after Morgan Stanley cut its price target from $80 to $79 while maintaining an equal-weight rating.
• Analyst sentiment remains moderately positive, with six Buy and six Hold ratings producing a “Moderate Buy” consensus and an average price target of $81.83.
• CMS Energy slightly beat quarterly EPS estimates at $0.37 versus $0.36, while revenue declined 0.5% year over year; the company also declared a quarterly dividend of $0.57, representing a 3.3% annualized yield.

CMS Energy Corporation (NYSE:CMS - Get Free Report)'s stock price reached a new 52-week low on Friday after Morgan Stanley lowered their price target on the stock from $80.00 to $79.00. Morgan Stanley currently has an equal weight rating on the stock. CMS Energy traded as low as $68.59 and last traded at $68.59, with a volume of 1395075 shares changing hands. The stock had previously closed at $69.83.

Several other equities analysts have also issued reports on CMS. Jefferies Financial Group set a $78.00 price target on CMS Energy in a research note on Thursday, July 16th. Barclays lifted their price objective on shares of CMS Energy from $79.00 to $81.00 and gave the company an "overweight" rating in a research note on Tuesday, July 14th. KeyCorp downgraded shares of CMS Energy from an "overweight" rating to a "sector weight" rating in a research report on Thursday, July 23rd. JPMorgan Chase & Co. increased their target price on shares of CMS Energy from $82.00 to $85.00 and gave the stock an "overweight" rating in a research note on Thursday, July 16th. Finally, UBS Group restated a "neutral" rating and issued a $84.00 price target on shares of CMS Energy in a report on Wednesday, July 29th. Six analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat, CMS Energy currently has a consensus rating of "Moderate Buy" and a consensus target price of $81.83.

Insider Buying and Selling

In other news, SVP Brandon J. Hofmeister sold 3,000 shares of CMS Energy stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $74.31, for a total value of $222,930.00. Following the completion of the sale, the senior vice president directly owned 67,111 shares in the company, valued at approximately $4,987,018.41. The trade was a 4.28% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 0.50% of the company's stock.

Institutional Trading of CMS Energy

Large investors have recently modified their holdings of the stock. GQG Partners LLC acquired a new stake in shares of CMS Energy during the 2nd quarter worth approximately $363,388,000. Norges Bank acquired a new position in CMS Energy during the fourth quarter valued at approximately $316,057,000. Magellan Asset Management Ltd acquired a new position in CMS Energy during the second quarter valued at approximately $194,237,000. Legal & General Group Plc bought a new stake in CMS Energy during the second quarter worth $189,370,000. Finally, Vanguard Group Inc. lifted its stake in CMS Energy by 3.8% during the fourth quarter. Vanguard Group Inc. now owns 40,672,292 shares of the utilities provider's stock worth $2,844,213,000 after purchasing an additional 1,501,991 shares during the last quarter. 93.57% of the stock is owned by institutional investors and hedge funds.

CMS Energy Stock Performance

The stock has a fifty day simple moving average of $73.76 and a two-hundred day simple moving average of $74.79. The stock has a market cap of $21.49 billion, a price-to-earnings ratio of 20.58, a P/E/G ratio of 2.56 and a beta of 0.35. The company has a debt-to-equity ratio of 1.81, a quick ratio of 0.67 and a current ratio of 0.94.

CMS Energy (NYSE:CMS - Get Free Report) last issued its quarterly earnings results on Tuesday, July 28th. The utilities provider reported $0.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.36 by $0.01. CMS Energy had a return on equity of 10.76% and a net margin of 11.64%.The company had revenue of $1.83 billion for the quarter, compared to analyst estimates of $1.87 billion. During the same quarter last year, the company posted $0.71 EPS. The company's revenue for the quarter was down .5% compared to the same quarter last year. CMS Energy has set its FY 2026 guidance at 4.080-4.170 EPS. Analysts expect that CMS Energy Corporation will post 3.87 EPS for the current fiscal year.

CMS Energy Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Friday, August 7th will be issued a $0.57 dividend. The ex-dividend date of this dividend is Friday, August 7th. This represents a $2.28 dividend on an annualized basis and a dividend yield of 3.3%. CMS Energy's dividend payout ratio is 68.47%.

About CMS Energy

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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