KeyCorp Issues Pessimistic Outlook for CMS Energy Earnings

Key Points

• KeyCorp cut its Q2 2026 EPS estimate for CMS Energy to $0.41 from $0.62 and maintained a “Sector Weight” rating. The company’s full-year 2026 guidance remains $3.83–$3.90 per share.
• CMS Energy’s latest quarterly results exceeded expectations, with EPS of $1.13 versus the $1.11 consensus and revenue of $2.73 billion, up 11.6% year over year.
• Analyst sentiment remains moderately positive overall, with a “Moderate Buy” consensus and an average price target of $81.33 versus the stock’s recent price of $74.83. CMS also declared a quarterly dividend of $0.57, representing a 3.0% annualized yield.

CMS Energy Corporation (NYSE:CMS - Free Report) - KeyCorp reduced their Q2 2026 earnings estimates for CMS Energy in a research note issued on Wednesday, July 22nd. KeyCorp analyst S. Karp now expects that the utilities provider will earn $0.41 per share for the quarter, down from their previous forecast of $0.62. KeyCorp has a "Sector Weight" rating on the stock. The consensus estimate for CMS Energy's current full-year earnings is $3.87 per share. KeyCorp also issued estimates for CMS Energy's Q4 2026 earnings at $1.18 EPS.

CMS Energy (NYSE:CMS - Get Free Report) last released its earnings results on Tuesday, April 28th. The utilities provider reported $1.13 EPS for the quarter, beating the consensus estimate of $1.11 by $0.02. The firm had revenue of $2.73 billion for the quarter, compared to analyst estimates of $2.46 billion. CMS Energy had a net margin of 12.55% and a return on equity of 12.17%. The business's quarterly revenue was up 11.6% compared to the same quarter last year. During the same period last year, the firm earned $1.02 EPS. CMS Energy has set its FY 2026 guidance at 3.830-3.90 EPS.

CMS has been the subject of several other reports. Morgan Stanley set a $77.00 price objective on shares of CMS Energy in a research report on Thursday, May 21st. JPMorgan Chase & Co. raised their target price on CMS Energy from $82.00 to $85.00 and gave the company an "overweight" rating in a report on Thursday, July 16th. Barclays lifted their price target on CMS Energy from $79.00 to $81.00 and gave the company an "overweight" rating in a research note on Tuesday, July 14th. Bank of America boosted their price target on CMS Energy from $82.00 to $88.00 and gave the stock a "buy" rating in a report on Tuesday, April 21st. Finally, Truist Financial dropped their price objective on CMS Energy from $86.00 to $83.00 and set a "buy" rating for the company in a research report on Monday, May 18th. Six analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat, CMS Energy currently has an average rating of "Moderate Buy" and an average target price of $81.33.

CMS Energy Stock Performance

NYSE CMS opened at $74.83 on Monday. The company has a current ratio of 0.84, a quick ratio of 0.66 and a debt-to-equity ratio of 1.80. The firm has a market capitalization of $23.12 billion, a price-to-earnings ratio of 20.67, a P/E/G ratio of 2.71 and a beta of 0.35. The firm's 50 day simple moving average is $74.22 and its 200 day simple moving average is $74.73. CMS Energy has a 1 year low of $68.64 and a 1 year high of $80.36.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Norges Bank acquired a new position in CMS Energy in the 4th quarter valued at approximately $316,057,000. Magellan Asset Management Ltd lifted its holdings in shares of CMS Energy by 698.7% during the first quarter. Magellan Asset Management Ltd now owns 2,019,954 shares of the utilities provider's stock worth $156,708,000 after purchasing an additional 1,767,059 shares during the period. Vanguard Group Inc. lifted its holdings in shares of 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 period. Pictet Asset Management Holding SA grew its stake in shares of CMS Energy by 70.9% in the fourth quarter. Pictet Asset Management Holding SA now owns 3,571,251 shares of the utilities provider's stock worth $249,738,000 after purchasing an additional 1,481,779 shares during the last quarter. Finally, Parnassus Investments LLC bought a new stake in shares of CMS Energy in the fourth quarter worth $102,983,000. 93.57% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In other CMS Energy news, SVP Brandon J. Hofmeister sold 3,000 shares of the firm's 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 sale, the senior vice president owned 67,111 shares in the company, valued at $4,987,018.41. This trade represents a 4.28% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. 0.50% of the stock is owned by corporate insiders.

CMS Energy Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Friday, August 7th will be paid a $0.57 dividend. The ex-dividend date of this dividend is Friday, August 7th. This represents a $2.28 annualized dividend and a yield of 3.0%. CMS Energy's dividend payout ratio is presently 62.98%.

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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