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

Key Points

• Unusual bearish options activity: Traders bought 12,575 put options on Edison International, 74% above the average daily volume of 7,211.
• Analyst sentiment has deteriorated: Several firms cut their price targets, and the stock carries an average “Reduce” rating with a consensus target of $60.18.
• Shares remain under pressure: EIX fell to $53.97, near its 52-week low, while the company maintains a quarterly dividend of $0.8775 per share, representing an annualized yield of about 6.5%.

Edison International (NYSE:EIX - Get Free Report) was the recipient of some unusual options trading activity on Tuesday. Traders acquired 12,575 put options on the stock. This is an increase of 74% compared to the average daily volume of 7,211 put options.

Analyst Ratings Changes

A number of research firms have weighed in on EIX. Truist Financial cut their price objective on shares of Edison International from $63.00 to $62.00 and set a "hold" rating for the company in a report on Monday. JPMorgan Chase & Co. cut their price objective on Edison International from $61.00 to $59.00 and set a "neutral" rating for the company in a research report on Monday. Barclays dropped their price target on shares of Edison International from $75.00 to $53.00 and set an "equal weight" rating on the stock in a research note on Friday. Bank of America downgraded shares of Edison International from a "buy" rating to a "neutral" rating and decreased their price objective for the company from $81.00 to $51.00 in a report on Tuesday, September 1st. Finally, Argus reiterated a "hold" rating on shares of Edison International in a research report on Wednesday, August 26th. One research analyst has rated the stock with a Buy rating, nine have given a Hold rating and four have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Reduce" and a consensus target price of $60.18.

Institutional Trading of Edison International

Institutional investors and hedge funds have recently bought and sold shares of the stock. Edmond DE Rothschild Holding S.A. purchased a new position in Edison International during the 2nd quarter worth $26,000. Groupe la Francaise purchased a new stake in shares of Edison International in the first quarter valued at about $29,000. Mowery & Schoenfeld Wealth Management LLC purchased a new stake in shares of Edison International in the second quarter valued at about $30,000. Bell Investment Advisors Inc acquired a new stake in shares of Edison International during the second quarter worth about $31,000. Finally, Silvant Capital Management LLC acquired a new stake in shares of Edison International during the second quarter worth about $41,000. 88.95% of the stock is currently owned by hedge funds and other institutional investors.

Edison International Price Performance

Shares of NYSE:EIX traded down $1.67 during trading on Tuesday, reaching $53.97. The stock had a trading volume of 3,735,606 shares, compared to its average volume of 3,625,710. The company has a debt-to-equity ratio of 1.95, a quick ratio of 0.61 and a current ratio of 0.66. The business has a fifty day moving average price of $61.24 and a 200-day moving average price of $68.73. The stock has a market cap of $20.77 billion, a PE ratio of 5.56, a PEG ratio of 2.23 and a beta of 0.62. Edison International has a 1-year low of $51.10 and a 1-year high of $81.62.

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

Edison International Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Saturday, October 31st. Stockholders of record on Wednesday, October 7th will be issued a dividend of $0.8775 per share. The ex-dividend date is Wednesday, October 7th. This represents a $3.51 dividend on an annualized basis and a dividend yield of 6.5%. Edison International's dividend payout ratio is currently 36.19%.

Edison International Company Profile

Edison International is a publicly owned holding company based in Rosemead, California. Its principal subsidiary, Southern California Edison (SCE), is an electric utility that generates, transmits, and distributes electricity across central, coastal, and Southern California.

SCE provides electric service to residential, commercial, industrial, and public-sector customers and manages a large transmission and distribution network. The utility is also involved in grid modernization, wildfire mitigation, renewable energy integration, energy efficiency, and the development of electric transportation infrastructure.

Edison International's history is rooted in Southern California Edison, which traces its origins to the late 19th century.

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