Edison International (NYSE:EIX) Sets New 52-Week Low - Should You Sell?

Key Points

• Edison International shares fell to a new 52-week low of $51.95, well below their 50-day and 200-day moving averages of $66.46 and $70.09, respectively.
• Analysts have broadly turned cautious: the stock carries a consensus “Reduce” rating, with 10 Holds and 3 Sells versus 1 Buy, and an average price target of $63.45.
• Despite the share-price weakness, Edison reported quarterly EPS of $1.54, exceeding estimates, and declared a quarterly dividend of $0.8775 per share, representing a 6.8% annualized yield.

Shares of Edison International (NYSE:EIX - Get Free Report) hit a new 52-week low on Monday. The stock traded as low as $51.95 and last traded at $51.97, with a volume of 251456 shares. The stock had previously closed at $52.65.

Analysts Set New Price Targets

EIX has been the subject of several research analyst reports. Morgan Stanley dropped their target price on shares of Edison International from $65.00 to $60.00 and set an "underweight" rating for the company in a research report on Friday, September 18th. UBS Group reaffirmed a "neutral" rating and set a $57.00 price target on shares of Edison International in a research report on Thursday. Bank of America downgraded Edison International from a "buy" rating to a "neutral" rating and decreased their price target for the stock from $81.00 to $51.00 in a research note on Tuesday, September 1st. Argus reissued a "hold" rating on shares of Edison International in a report on Wednesday, August 26th. Finally, JPMorgan Chase & Co. lowered their price objective on Edison International from $82.00 to $61.00 and set a "neutral" rating for the company in a report on Wednesday, September 2nd. One equities research analyst has rated the stock with a Buy rating, ten have issued a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Reduce" and an average target price of $63.45.

Edison International Price Performance

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 company has a fifty day moving average price of $66.46 and a 200 day moving average price of $70.09. The company has a market capitalization of $19.93 billion, a P/E ratio of 5.34, a price-to-earnings-growth ratio of 2.12 and a beta of 0.62.

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 (EPS) for the quarter, topping the consensus estimate of $1.18 by $0.36. The business had revenue of $4.36 billion for the quarter, compared to the consensus estimate of $4.82 billion. Edison International had a return on equity of 15.53% and a net margin of 20.30%.The business's revenue was down 4.1% on a year-over-year basis. During the same quarter last year, the business posted $0.97 EPS. Edison International has set its FY 2026 guidance at 5.900-6.200 EPS. On average, sell-side analysts forecast that Edison International will post 6.13 EPS for the current fiscal year.

Edison International Announces Dividend

The company 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 of this dividend is Wednesday, October 7th. This represents a $3.51 annualized dividend and a dividend yield of 6.8%. Edison International's payout ratio is 36.19%.

Hedge Funds Weigh In On Edison International

Several institutional investors have recently modified their holdings of EIX. BlackRock Inc. acquired a new position in Edison International during the 2nd quarter valued at about $3,340,412,000. Norges Bank bought a new stake in shares of Edison International during the fourth quarter valued at approximately $339,311,000. Goldman Sachs Group Inc. raised its holdings in shares of Edison International by 41.4% during the fourth quarter. Goldman Sachs Group Inc. now owns 5,496,907 shares of the utilities provider's stock valued at $329,924,000 after buying an additional 1,609,847 shares during the last quarter. Legal & General Group Plc bought a new position in Edison International in the 2nd quarter worth approximately $329,766,000. Finally, Bank of New York Mellon Corp bought a new position in Edison International in the 2nd quarter worth approximately $309,361,000. Institutional investors own 88.95% of the company's stock.

Edison International Company Profile

Edison International NYSE: EIX is a holding company focused on electric power generation, transmission and distribution, as well as clean-energy solutions. Its principal subsidiary, Southern California Edison (SCE), is a regulated electric utility that delivers electricity to residential, commercial, industrial and public-sector customers.

SCE operates one of the largest electric utility systems in the United States, serving communities across central, coastal and Southern California.

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