Hsbc Holdings PLC Buys 218,168 Shares of CMS Energy Corporation $CMS

Key Points

• HSBC Holdings PLC increased its stake in CMS Energy by 42.7% in the fourth quarter, buying 218,168 additional shares and bringing its total holding to 729,009 shares worth about $51.0 million.
• CMS Energy posted solid quarterly results, reporting EPS of $1.13 versus estimates of $1.11 and revenue of $2.73 billion, while also reaffirming full-year guidance of 3.83-3.90 EPS for FY2026.
• The company continues to pay a steady dividend of $0.57 per quarter, equal to a 3.0% annual yield, even as some analysts have trimmed price targets and Jefferies downgraded the stock to hold.

Hsbc Holdings PLC lifted its position in CMS Energy Corporation (NYSE:CMS - Free Report) by 42.7% in the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 729,009 shares of the utilities provider's stock after buying an additional 218,168 shares during the quarter. Hsbc Holdings PLC owned about 0.24% of CMS Energy worth $51,031,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also bought and sold shares of the company. Rehmann Capital Advisory Group bought a new stake in CMS Energy during the fourth quarter valued at about $330,000. Caitong International Asset Management Co. Ltd grew its position in shares of CMS Energy by 525.5% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 3,922 shares of the utilities provider's stock valued at $274,000 after purchasing an additional 3,295 shares during the last quarter. Tobam increased its stake in shares of CMS Energy by 1,029.3% in the fourth quarter. Tobam now owns 11,248 shares of the utilities provider's stock worth $787,000 after purchasing an additional 10,252 shares during the period. MidFirst Bank bought a new position in shares of CMS Energy in the fourth quarter worth about $31,000. Finally, Pacer Advisors Inc. lifted its position in shares of CMS Energy by 39.8% during the 4th quarter. Pacer Advisors Inc. now owns 39,362 shares of the utilities provider's stock worth $2,753,000 after purchasing an additional 11,204 shares during the last quarter. 93.57% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

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

CMS Energy Price Performance

Shares of NYSE:CMS opened at $75.36 on Wednesday. CMS Energy Corporation has a 1-year low of $68.41 and a 1-year high of $80.36. The firm has a market capitalization of $23.28 billion, a PE ratio of 20.82, a PEG ratio of 2.67 and a beta of 0.35. The business's 50 day moving average is $74.11 and its 200-day moving average is $73.84. The company has a current ratio of 0.84, a quick ratio of 0.66 and a debt-to-equity ratio of 1.80.

CMS Energy (NYSE:CMS - Get Free Report) last issued its earnings results on Tuesday, April 28th. The utilities provider reported $1.13 EPS for the quarter, beating analysts' consensus estimates of $1.11 by $0.02. The business had revenue of $2.73 billion during the quarter, compared to analyst estimates of $2.46 billion. CMS Energy had a return on equity of 12.17% and a net margin of 12.55%.CMS Energy's revenue was up 11.6% on a year-over-year basis. During the same period in the prior year, the company posted $1.02 earnings per share. CMS Energy has set its FY 2026 guidance at 3.830-3.90 EPS. Sell-side analysts predict that CMS Energy Corporation will post 3.87 earnings per share for the current year.

CMS Energy Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, May 29th. Shareholders of record on Friday, May 8th were issued a $0.57 dividend. This represents a $2.28 annualized dividend and a yield of 3.0%. The ex-dividend date of this dividend was Friday, May 8th. CMS Energy's payout ratio is 62.98%.

Wall Street Analyst Weigh In

CMS has been the subject of several recent analyst reports. JPMorgan Chase & Co. decreased their target price on CMS Energy from $86.00 to $82.00 and set an "overweight" rating for the company in a research note on Thursday, May 14th. BMO Capital Markets cut their price target on CMS Energy from $82.00 to $81.00 and set an "outperform" rating for the company in a report on Thursday, June 4th. Morgan Stanley set a $77.00 price objective on CMS Energy in a research report on Thursday, May 21st. Barclays lowered their price objective on shares of CMS Energy from $81.00 to $79.00 and set an "overweight" rating on the stock in a research note on Wednesday, April 29th. Finally, Jefferies Financial Group lowered shares of CMS Energy from a "buy" rating to a "hold" rating and dropped their target price for the stock from $88.00 to $74.00 in a research report on Thursday, June 4th. Seven equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $80.17.

CMS Energy Company Profile

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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