CMS Energy Corporation (NYSE:CMS) Stock Rated "Hold" by Sell-Side Analysts

Key Points

• Analyst sentiment is mixed: Eight of 15 analysts rate CMS Energy “Hold” and seven rate it “Buy.” The average 12-month price target is $77.35.
• CMS Energy reported quarterly earnings of $1.44 per share, beating estimates of $1.35, while revenue of $2.18 billion came in below expectations. Revenue rose 8% year over year.
• The company declared a quarterly dividend of $0.57 per share, equivalent to $2.28 annually and a 3.2% yield.

Shares of CMS Energy Corporation (NYSE:CMS - Get Free Report) have earned a consensus recommendation of "Hold" from the fifteen analysts that are currently covering the firm, MarketBeat reports. Eight equities research analysts have rated the stock with a hold recommendation and seven have issued a buy recommendation on the company. The average twelve-month target price among analysts that have issued a report on the stock in the last year is $77.35.

Several research firms have weighed in on CMS. Truist Financial lowered their price target on shares of CMS Energy from $81.00 to $77.00 and set a "buy" rating for the company in a research note on Wednesday, October 14th. Barclays decreased their target price on CMS Energy from $81.00 to $72.00 and set an "overweight" rating for the company in a report on Friday, October 16th. HSBC started coverage on CMS Energy in a research note on Thursday, October 22nd. They issued a "hold" rating and a $69.00 price target for the company. BMO Capital Markets boosted their price objective on shares of CMS Energy from $73.00 to $76.00 and gave the company an "outperform" rating in a research report on Monday, October 19th. Finally, Jefferies Financial Group decreased their price objective on shares of CMS Energy from $78.00 to $74.00 and set a "hold" rating for the company in a report on Tuesday, September 15th.

CMS Energy Stock Up 1.6%

NYSE:CMS traded up $1.09 during trading hours on Friday, hitting $70.31. 3,185,751 shares of the company traded hands, compared to its average volume of 4,265,800. CMS Energy has a one year low of $62.28 and a one year high of $80.36. The company has a quick ratio of 0.67, a current ratio of 0.95 and a debt-to-equity ratio of 1.88. The firm's 50-day simple moving average is $67.09 and its 200-day simple moving average is $72.46. The company has a market cap of $22.05 billion, a PE ratio of 25.11, a PEG ratio of 2.53 and a beta of 0.31.

CMS Energy (NYSE:CMS - Get Free Report) last posted its quarterly earnings results on Tuesday, October 27th. The utilities provider reported $1.44 EPS for the quarter, topping analysts' consensus estimates of $1.35 by $0.09. CMS Energy had a net margin of 9.72% and a return on equity of 12.28%. The company had revenue of $2.18 billion for the quarter, compared to analysts' expectations of $2.23 billion. During the same quarter in the previous year, the firm posted $0.93 EPS. CMS Energy's revenue was up 8.0% on a year-over-year basis. Equities analysts predict that CMS Energy will post 3.87 earnings per share for the current year.

CMS Energy Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 1st. Shareholders of record on Friday, November 6th will be paid a dividend of $0.57 per share. The ex-dividend date is Friday, November 6th. This represents a $2.28 dividend on an annualized basis and a yield of 3.2%. CMS Energy's payout ratio is presently 81.43%.

Hedge Funds Weigh In On CMS Energy

Hedge funds and other institutional investors have recently bought and sold shares of the stock. GQG Partners LLC purchased a new position in shares of CMS Energy during the 2nd quarter valued at about $363,388,000. Russell Investments Group Ltd. raised its position in CMS Energy by 858.8% in the 3rd quarter. Russell Investments Group Ltd. now owns 3,054,604 shares of the utilities provider's stock worth $192,684,000 after purchasing an additional 2,736,030 shares during the period. Magellan Asset Management Ltd bought a new position in CMS Energy in the 2nd quarter valued at $194,237,000. Legal & General Group Plc bought a new position in shares of CMS Energy in the second quarter worth about $189,370,000. Finally, Healthcare of Ontario Pension Plan Trust Fund grew its holdings in shares of CMS Energy by 329.5% in the third quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 2,372,426 shares of the utilities provider's stock worth $149,653,000 after purchasing an additional 1,820,012 shares during the last quarter. Institutional investors own 93.57% of the company's stock.

CMS Energy Company Profile

CMS Energy is a Michigan-based energy company and the parent of Consumers Energy, a regulated utility that provides electricity and natural gas to homes and businesses across Michigan's Lower Peninsula. Consumers Energy serves customers in all 68 counties in the peninsula. Through Consumers Energy, the company generates, purchases, transmits and distributes electricity, and supplies natural gas. Its operations include maintaining utility infrastructure and developing energy resources, including renewable generation, to support the region's energy needs.

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