Traders Buy Large Volume of Call Options on Edison International (NYSE:EIX)

Key Points

• Unusual options activity: Investors purchased 23,522 EIX call options, roughly 514% above the average volume, signaling heightened speculative interest in a potential recovery.
• Shares and analyst outlook weakened: Edison International stock fell to $59.01, while analysts’ consensus rating is “Reduce” with an average price target of $67.18; several firms recently cut their targets.
• Wildfire liability remains the main risk: California lawmakers rejected a wildfire bill that lacked liability protections for utilities, leaving uncertainty over potential claims, balance-sheet pressure and credit impacts for Edison.

Edison International (NYSE:EIX - Get Free Report) was the recipient of some unusual options trading on Tuesday. Stock investors bought 23,522 call options on the company. This represents an increase of approximately 514% compared to the average volume of 3,833 call options.

Institutional Investors Weigh In On Edison International

A number of hedge funds have recently made changes to their positions in EIX. Corient Private Wealth LP grew its stake in Edison International by 49.7% during the second quarter. Corient Private Wealth LP now owns 136,621 shares of the utilities provider's stock worth $10,171,000 after buying an additional 45,336 shares during the last quarter. Amundi increased its holdings in shares of Edison International by 27.0% during the second quarter. Amundi now owns 3,570,726 shares of the utilities provider's stock worth $265,843,000 after buying an additional 759,236 shares in the last quarter. HighTower Advisors LLC raised its stake in shares of Edison International by 3.9% in the second quarter. HighTower Advisors LLC now owns 55,052 shares of the utilities provider's stock valued at $4,099,000 after acquiring an additional 2,089 shares during the last quarter. Groupe la Francaise raised its stake in shares of Edison International by 1,534.8% in the second quarter. Groupe la Francaise now owns 6,572 shares of the utilities provider's stock valued at $489,000 after acquiring an additional 6,170 shares during the last quarter. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in shares of Edison International in the 2nd quarter worth approximately $33,328,000. Institutional investors and hedge funds own 88.95% of the company's stock.

Edison International Price Performance

Shares of Edison International stock traded up $5.03 during midday trading on Tuesday, hitting $59.01. 24,585,139 shares of the company were exchanged, compared to its average volume of 3,307,262. The firm has a 50 day simple moving average of $73.94 and a 200-day simple moving average of $72.33. The company has a debt-to-equity ratio of 1.95, a current ratio of 0.66 and a quick ratio of 0.61. The firm has a market cap of $22.71 billion, a P/E ratio of 6.08, a PEG ratio of 5.45 and a beta of 0.66. Edison International has a 52 week low of $52.00 and a 52 week high of $81.62.

Edison International (NYSE:EIX - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The utilities provider reported $1.54 earnings per share for the quarter, beating analysts' consensus estimates of $1.18 by $0.36. Edison International had a return on equity of 15.53% and a net margin of 20.30%.The firm had revenue of $4.36 billion for the quarter, compared to analysts' expectations of $4.82 billion. During the same period in the prior year, the business posted $0.97 earnings per share. The business's revenue was down 4.1% compared to the same quarter last year. 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 year.

Edison International Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, July 31st. Stockholders of record on Tuesday, July 7th were issued a $0.8775 dividend. The ex-dividend date of this dividend was Tuesday, July 7th. This represents a $3.51 annualized dividend and a dividend yield of 5.9%. Edison International's dividend payout ratio is presently 36.19%.

Analysts Set New Price Targets

Several research firms have commented on EIX. Mizuho reissued a "neutral" rating and issued a $70.00 target price (down from $86.00) on shares of Edison International in a research report on Monday. JPMorgan Chase & Co. raised their target price on Edison International from $75.00 to $76.00 and gave the company a "neutral" rating in a report on Friday, May 15th. Truist Financial dropped their price objective on shares of Edison International from $81.00 to $77.00 and set a "hold" rating on the stock in a report on Tuesday, August 4th. UBS Group decreased their price objective on Edison International from $75.00 to $63.00 and set a "neutral" rating on the stock in a report on Tuesday. Finally, Morgan Stanley lowered their price objective on Edison International from $69.00 to $65.00 and set an "underweight" rating on the stock in a research report on Friday, August 21st. Two research analysts have rated the stock with a Buy rating, nine have given a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, Edison International presently has a consensus rating of "Reduce" and an average price target of $67.18.

Key Edison International News

Here are the key news stories impacting Edison International this week:

• Positive Sentiment: California lawmakers reportedly killed a wildfire bill that did not provide liability protections for investor-owned utilities. The development may reduce the immediate risk of the legislation becoming law and helped lift EIX and PG&E shares, although a replacement measure remains uncertain. PG&E Stock, Edison International Rise as California Lawmakers Kill Wildfire Bill
• Positive Sentiment: Options activity was unusually bullish, with traders purchasing 23,522 call options—about 514% above average volume. This signals heightened speculative interest in a recovery, though options positioning does not guarantee sustained buying in the stock.
• Neutral Sentiment: Analyst views are diverging. Mizuho reaffirmed a “neutral” rating but lowered its price target to $70 from $86, while Bank of America also maintained “neutral” and cut its target to $51 from $81. The wide range reflects substantial uncertainty around wildfire liability and potential financial exposure. Wall Street Breakfast Podcast: Liability Sparks Downgrades
• Negative Sentiment: The core risk remains unresolved: California’s amended wildfire legislation reportedly omitted the liability cap and other protections utilities had sought. Edison’s Southern California Edison subsidiary called for comprehensive wildfire reform, underscoring concerns about potentially significant claims, balance-sheet pressure and credit-rating damage if the company is held responsible for future fires. Edison International plunges 23% after California bill omits protections

About Edison International

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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