CMS Energy (NYSE:CMS) Hits New 1-Year Low - Time to Sell?

Key Points

• CMS Energy shares fell to a new 52-week low of $62.29, well below their 50-day and 200-day moving averages of $69.13 and $73.14, respectively.
• Analysts remain broadly positive, with a “Moderate Buy” consensus and an average price target of $80.54, although several firms recently lowered their targets to the $74–$77 range.
• The utility reported quarterly EPS of $0.37, narrowly beating estimates, while revenue declined 0.5% year over year. CMS Energy also maintains a quarterly dividend of $0.57 per share, yielding about 3.6% annually.

Shares of CMS Energy Corporation (NYSE:CMS - Get Free Report) hit a new 52-week low on Tuesday. The company traded as low as $62.29 and last traded at $62.9570, with a volume of 164696 shares trading hands. The stock had previously closed at $62.60.

Analysts Set New Price Targets

CMS has been the subject of several research reports. BMO Capital Markets decreased their price target on shares of CMS Energy from $82.00 to $77.00 and set an "outperform" rating for the company in a report on Tuesday, September 8th. JPMorgan Chase & Co. increased their target price on shares of CMS Energy from $82.00 to $85.00 and gave the stock an "overweight" rating in a research report on Thursday, July 16th. Mizuho decreased their target price on shares of CMS Energy from $78.00 to $77.00 and set a "neutral" rating for the company in a research note on Wednesday, July 29th. Jefferies Financial Group dropped their price target on shares of CMS Energy from $78.00 to $74.00 and set a "hold" rating on the stock in a research note on Tuesday, September 15th. Finally, Wall Street Zen raised CMS Energy from a "strong sell" rating to a "sell" rating in a research report on Sunday, July 5th. Seven research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $80.54.

CMS Energy Price Performance

The company has a debt-to-equity ratio of 1.81, a current ratio of 0.94 and a quick ratio of 0.67. The stock has a market capitalization of $19.71 billion, a price-to-earnings ratio of 18.87, a PEG ratio of 2.30 and a beta of 0.34. The stock's 50 day simple moving average is $69.13 and its 200-day simple moving average is $73.14.

CMS Energy (NYSE:CMS - Get Free Report) last announced its quarterly earnings results on Tuesday, July 28th. The utilities provider reported $0.37 EPS for the quarter, topping the consensus estimate of $0.36 by $0.01. The company had revenue of $1.83 billion for the quarter, compared to analyst estimates of $1.87 billion. CMS Energy had a net margin of 11.64% and a return on equity of 10.76%. CMS Energy's quarterly revenue was down .5% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.71 EPS. CMS Energy has set its FY 2026 guidance at 4.080-4.170 EPS. On average, analysts expect that CMS Energy Corporation will post 3.87 EPS for the current fiscal year.

CMS Energy Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 1st. Shareholders of record on Friday, August 7th were issued a dividend of $0.57 per share. This represents a $2.28 annualized dividend and a yield of 3.6%. The ex-dividend date was Friday, August 7th. CMS Energy's dividend payout ratio (DPR) is 68.47%.

Institutional Trading of CMS Energy

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Capital Innovations LLC bought a new position in shares of CMS Energy in the fourth quarter worth about $1,652,000. Assenagon Asset Management S.A. grew its holdings in CMS Energy by 10,463.3% in the 2nd quarter. Assenagon Asset Management S.A. now owns 518,237 shares of the utilities provider's stock valued at $39,645,000 after buying an additional 513,331 shares during the last quarter. Vaughan Nelson Investment Management L.P. increased its position in CMS Energy by 28.6% in the 1st quarter. Vaughan Nelson Investment Management L.P. now owns 1,023,324 shares of the utilities provider's stock worth $79,389,000 after buying an additional 227,795 shares during the period. ING Groep NV lifted its holdings in shares of CMS Energy by 97.7% during the fourth quarter. ING Groep NV now owns 1,263,429 shares of the utilities provider's stock worth $88,352,000 after buying an additional 624,232 shares during the last quarter. Finally, Jefferies Financial Group Inc. acquired a new position in shares of CMS Energy during the second quarter worth approximately $2,106,000. Institutional investors and hedge funds own 93.57% of the company's stock.

CMS Energy Company Profile

CMS Energy Corporation NYSE: CMS is an energy company headquartered in Jackson, Michigan. Its principal subsidiary, Consumers Energy, is a regulated utility that provides electric and natural gas service to residential, commercial and industrial customers throughout Michigan.

Consumers Energy operates and maintains a diverse energy infrastructure that includes electric generation, transmission and distribution systems, as well as natural gas storage and distribution networks. The company is also investing in renewable energy and other technologies intended to support a cleaner and more reliable energy system, while continuing to serve customers across Michigan's Lower Peninsula.

CMS Energy traces its history to the Consumers Power Company, which was founded in 1886.

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