Edison International (NYSE:EIX) Sees Large Volume Increase - Here's Why

Key Points

• Wildfire liability concerns are driving pressure on Edison International, as California’s amended legislation may leave utilities responsible for significant or potentially uncapped costs if their equipment causes fires.
• Analysts remain cautious: Bank of America cut its price target to $51 from $81, while Mizuho lowered its target to $70 from $86. The stock has an average “Reduce” rating and a consensus target of $67.18.
• Trading volume reached about 1.89 million shares, down 40% from the prior session, while the stock traded near $53.86. Edison recently reported better-than-expected quarterly EPS and offers a 6.3% annualized dividend yield.

Edison International (NYSE:EIX - Get Free Report) saw an uptick in trading volume on Tuesday . Approximately 1,890,748 shares changed hands during mid-day trading, a decline of 40% from the previous session's volume of 3,161,839 shares.The stock last traded at $53.8610 and had previously closed at $53.98.

Trending Headlines about Edison International

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

• Positive Sentiment: The stock’s rebound may reflect dip-buying after its steepest one-day decline in decades. Some investors reportedly view the selloff as an overreaction, while Edison’s Southern California Edison subsidiary is calling for comprehensive wildfire reform that could eventually provide utilities with greater protection. California wildfire legislation and investor reaction
• Neutral Sentiment: Mizuho reaffirmed its “neutral” rating but lowered its price target to $70 from $86. The revised target still implies substantial upside from recent trading levels, although the reduction highlights greater uncertainty surrounding EIX’s risk profile. Monday analyst research calls
• Negative Sentiment: Bank of America reaffirmed a “neutral” rating while cutting its price target sharply to $51 from $81, implying downside from recent levels. The action follows California lawmakers’ advancement of wildfire legislation that omits the liability protections investors had expected for investor-owned utilities. Edison stock wildfire liability bill
• Negative Sentiment: The amended California wildfire bill could leave Edison and other utilities responsible for significant wildfire-related costs if their equipment is found to have caused a fire. Investors are concerned that potentially uncapped liabilities could weaken cash flow, increase borrowing needs, and threaten credit ratings. Edison International wildfire liability protections

Wall Street Analyst Weigh In

EIX has been the topic of several recent research reports. Truist Financial reduced their price target 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. Barclays reiterated an "equal weight" rating and set a $75.00 price target (down from $78.00) on shares of Edison International in a report on Friday, July 31st. Mizuho reissued a "neutral" rating and issued a $70.00 price objective (down from $86.00) on shares of Edison International in a research report on Monday. JPMorgan Chase & Co. upped their price objective on shares of Edison International from $75.00 to $76.00 and gave the company a "neutral" rating in a research note on Friday, May 15th. Finally, Argus restated a "hold" rating on shares of Edison International in a research report on Wednesday, August 26th. Two equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Reduce" and a consensus target price of $67.18.

Edison International Price Performance

The company has a 50-day moving average of $73.94 and a two-hundred day 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 stock has a market capitalization of $21.38 billion, a PE ratio of 5.73, a P/E/G ratio of 5.45 and a beta of 0.66.

Edison International (NYSE:EIX - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The utilities provider reported $1.54 EPS for the quarter, beating analysts' consensus estimates of $1.18 by $0.36. The company had revenue of $4.36 billion during the quarter, compared to the consensus estimate of $4.82 billion. Edison International had a net margin of 20.30% and a return on equity of 15.53%. The company's quarterly revenue was down 4.1% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.97 EPS. Edison International has set its FY 2026 guidance at 5.900-6.200 EPS. Sell-side analysts predict that Edison International will post 6.13 EPS for the current fiscal year.

Edison International Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, July 31st. Investors of record on Tuesday, July 7th were issued a $0.8775 dividend. This represents a $3.51 dividend on an annualized basis and a yield of 6.3%. The ex-dividend date was Tuesday, July 7th. Edison International's payout ratio is presently 36.19%.

Hedge Funds Weigh In On Edison International

Large investors have recently bought and sold shares of the stock. Jones Financial Companies Lllp increased its holdings in shares of Edison International by 112.9% during the 1st quarter. Jones Financial Companies Lllp now owns 9,785 shares of the utilities provider's stock worth $577,000 after buying an additional 5,190 shares during the last quarter. Empowered Funds LLC grew its position in Edison International by 2.4% during the first quarter. Empowered Funds LLC now owns 8,875 shares of the utilities provider's stock valued at $523,000 after acquiring an additional 211 shares during the period. Woodline Partners LP increased its stake in Edison International by 40.7% during the first quarter. Woodline Partners LP now owns 32,709 shares of the utilities provider's stock worth $1,927,000 after acquiring an additional 9,459 shares during the last quarter. Sivia Capital Partners LLC increased its stake in Edison International by 153.6% during the second quarter. Sivia Capital Partners LLC now owns 8,734 shares of the utilities provider's stock worth $451,000 after acquiring an additional 5,290 shares during the last quarter. Finally, Baird Financial Group Inc. purchased a new position in shares of Edison International in the 2nd quarter worth about $302,000. Hedge funds and other institutional investors own 88.95% of the company's stock.

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.

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