Edison International (NYSE:EIX) Stock Price Down 3.4% After Analyst Downgrade

Key Points

• Edison International shares fell 3.4% after Morgan Stanley cut its price target from $69 to $65 and maintained an underweight rating. The stock traded near $72.09, while average analyst sentiment remains “Hold” with a $72.45 consensus target.
• Recent analyst views are mixed: Mizuho raised its target to $86 with an outperform rating, while Barclays, Truist Financial and Weiss Ratings issued more cautious assessments. Institutional investors own approximately 88.95% of the company’s shares.
• Edison International exceeded quarterly earnings expectations, reporting $1.54 in EPS versus the $1.18 consensus, though revenue declined 4.1% year over year to $4.36 billion. The company pays an annualized dividend of $3.51 per share, representing a 4.9% yield.

Shares of Edison International (NYSE:EIX - Get Free Report) traded down 3.4% during mid-day trading on Friday after Morgan Stanley lowered their price target on the stock from $69.00 to $65.00. Morgan Stanley currently has an underweight rating on the stock. Edison International traded as low as $71.63 and last traded at $72.09. 733,489 shares traded hands during mid-day trading, a decline of 76% from the average session volume of 3,011,394 shares. The stock had previously closed at $74.66.

EIX has been the subject of several other reports. JPMorgan Chase & Co. raised their price objective on shares of Edison International from $75.00 to $76.00 and gave the stock a "neutral" rating in a report on Friday, May 15th. Mizuho lifted their price objective on Edison International from $79.00 to $86.00 and gave the company an "outperform" rating in a research note on Friday, July 31st. Weiss Ratings downgraded Edison International from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, August 12th. Barclays reissued an "equal weight" rating and issued a $75.00 target price (down from $78.00) on shares of Edison International in a research note on Friday, July 31st. Finally, Truist Financial reduced their price target on Edison International from $81.00 to $77.00 and set a "hold" rating for the company in a report on Tuesday, August 4th. Three equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, the company presently has an average rating of "Hold" and an average target price of $72.45.

Hedge Funds Weigh In On Edison International

A number of hedge funds have recently added to or reduced their stakes in EIX. 10Elms LLP bought a new position in shares of Edison International during the fourth quarter valued at $26,000. Edmond DE Rothschild Holding S.A. bought a new stake in Edison International in the 2nd quarter worth about $26,000. Transamerica Financial Advisors LLC increased its holdings in Edison International by 170.3% in the 4th quarter. Transamerica Financial Advisors LLC now owns 446 shares of the utilities provider's stock worth $27,000 after buying an additional 281 shares in the last quarter. Groupe la Francaise purchased a new position in Edison International in the 1st quarter worth about $29,000. Finally, Mowery & Schoenfeld Wealth Management LLC purchased a new position in Edison International in the 2nd quarter worth about $30,000. 88.95% of the stock is currently owned by hedge funds and other institutional investors.

Edison International Stock Down 3.8%

The company has a current ratio of 0.66, a quick ratio of 0.61 and a debt-to-equity ratio of 1.95. The firm has a market cap of $27.63 billion, a P/E ratio of 7.40, a PEG ratio of 5.70 and a beta of 0.66. The company's 50 day simple moving average is $74.16 and its 200-day simple moving average is $71.98.

Edison International (NYSE:EIX - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The utilities provider reported $1.54 EPS for the quarter, topping analysts' consensus estimates of $1.18 by $0.36. Edison International had a net margin of 20.30% and a return on equity of 15.53%. The firm had revenue of $4.36 billion during the quarter, compared to analyst estimates of $4.82 billion. During the same period in the previous year, the business posted $0.97 earnings per share. The business's revenue for the quarter was down 4.1% on a year-over-year basis. Edison International has set its FY 2026 guidance at 5.900-6.200 EPS. Research analysts forecast that Edison International will post 6.13 earnings per share for the current fiscal year.

Edison International Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, July 31st. Shareholders of record on Tuesday, July 7th were given a $0.8775 dividend. This represents a $3.51 dividend on an annualized basis and a yield of 4.9%. The ex-dividend date of this dividend was Tuesday, July 7th. Edison International's payout ratio is 36.19%.

Edison International Company Profile

Edison International is a publicly traded utility holding company based in Rosemead, California, whose principal subsidiary is Southern California Edison (SCE). As an electric utility holding company, Edison International oversees the delivery of electricity through SCE's integrated network of generation procurement, transmission and distribution infrastructure, serving millions of customers across central, coastal and southern California. The company's operations focus on reliable energy delivery, customer service, regulatory compliance and long-term infrastructure planning for a complex and high-demand service territory.

The company's activities include procuring and managing a diverse resource mix, maintaining and upgrading transmission and distribution systems, and implementing grid modernization projects.

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