Goldman Sachs Group Inc. Increases Stake in CMS Energy Corporation $CMS

Key Points

• Goldman Sachs Group Inc. increased its stake in CMS Energy Corporation by 20.2% in Q1, now owning 4.48 million shares valued at approximately $336.76 million.
• CMS Energy reported a better-than-expected earnings per share of $0.71 for the last quarter, exceeding analysts' estimates of $0.67, with a revenue of $1.84 billion.
• The company declared a quarterly dividend of $0.5425 per share, which represents a yield of 3.1%, and the payout ratio is currently 64.20%.

Goldman Sachs Group Inc. boosted its position in CMS Energy Corporation (NYSE:CMS - Free Report) by 20.2% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 4,483,585 shares of the utilities provider's stock after acquiring an additional 753,173 shares during the period. Goldman Sachs Group Inc. owned 1.50% of CMS Energy worth $336,762,000 at the end of the most recent reporting period.

A number of other large investors have also added to or reduced their stakes in the company. Price T Rowe Associates Inc. MD boosted its stake in shares of CMS Energy by 16.1% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 16,554,877 shares of the utilities provider's stock valued at $1,243,438,000 after purchasing an additional 2,297,928 shares in the last quarter. Nuveen LLC bought a new stake in shares of CMS Energy during the 1st quarter valued at about $106,745,000. Zimmer Partners LP bought a new stake in shares of CMS Energy during the 4th quarter valued at about $89,173,000. GAMMA Investing LLC boosted its stake in shares of CMS Energy by 8,733.7% during the 1st quarter. GAMMA Investing LLC now owns 1,013,309 shares of the utilities provider's stock valued at $76,110,000 after purchasing an additional 1,001,838 shares in the last quarter. Finally, Lord Abbett & CO. LLC boosted its stake in shares of CMS Energy by 72.9% during the 1st quarter. Lord Abbett & CO. LLC now owns 2,302,338 shares of the utilities provider's stock valued at $172,929,000 after purchasing an additional 970,510 shares in the last quarter. Institutional investors own 93.57% of the company's stock.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on CMS shares. Wolfe Research reaffirmed a "peer perform" rating on shares of CMS Energy in a research note on Monday, July 7th. Wall Street Zen lowered shares of CMS Energy from a "hold" rating to a "sell" rating in a research note on Saturday, July 26th. Morgan Stanley reissued an "outperform" rating on shares of CMS Energy in a research note on Thursday, August 21st. Finally, Barclays lifted their target price on shares of CMS Energy from $77.00 to $78.00 and gave the stock an "overweight" rating in a report on Tuesday, July 22nd. Eight analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, CMS Energy has a consensus rating of "Moderate Buy" and a consensus target price of $77.25.

CMS Energy Price Performance

Shares of CMS traded up $0.17 during mid-day trading on Monday, reaching $71.85. The stock had a trading volume of 243,632 shares, compared to its average volume of 2,409,974. The company has a debt-to-equity ratio of 1.93, a quick ratio of 0.77 and a current ratio of 1.00. The business has a fifty day moving average of $72.09 and a 200 day moving average of $71.77. CMS Energy Corporation has a 12 month low of $63.97 and a 12 month high of $76.45. The firm has a market cap of $21.51 billion, a price-to-earnings ratio of 21.27, a PEG ratio of 2.66 and a beta of 0.39.

CMS Energy (NYSE:CMS - Get Free Report) last issued its earnings results on Thursday, July 31st. The utilities provider reported $0.71 earnings per share for the quarter, topping analysts' consensus estimates of $0.67 by $0.04. CMS Energy had a net margin of 12.76% and a return on equity of 12.07%. The firm had revenue of $1.84 billion during the quarter, compared to analyst estimates of $1.68 billion. During the same quarter in the prior year, the business earned $0.66 earnings per share. CMS Energy's revenue for the quarter was up 14.4% on a year-over-year basis. CMS Energy has set its FY 2025 guidance at 3.540-3.600 EPS. Equities analysts predict that CMS Energy Corporation will post 3.59 EPS for the current year.

CMS Energy Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, August 29th. Investors of record on Friday, August 8th were given a dividend of $0.5425 per share. The ex-dividend date was Friday, August 8th. This represents a $2.17 dividend on an annualized basis and a dividend yield of 3.0%. CMS Energy's dividend payout ratio is currently 64.20%.

Insiders Place Their Bets

In related news, SVP Brandon J. Hofmeister sold 2,000 shares of the company's stock in a transaction on Friday, August 8th. The shares were sold at an average price of $73.62, for a total transaction of $147,240.00. Following the completion of the transaction, the senior vice president owned 68,036 shares in the company, valued at approximately $5,008,810.32. This represents a 2.86% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, SVP Lauren Y. Snyder sold 2,220 shares of the company's stock in a transaction on Friday, September 5th. The shares were sold at an average price of $71.26, for a total transaction of $158,197.20. Following the sale, the senior vice president directly owned 13,512 shares in the company, valued at approximately $962,865.12. The trade was a 14.11% decrease in their position. The disclosure for this sale can be found here. 0.40% of the stock is currently owned by corporate insiders.

About CMS Energy

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.