Edison International (NYSE:EIX) Shares Gap Down - Should You Sell?

Key Points

• Edison International shares plunged 23.2%, opening at $55.71 versus the prior close of $70.17, with more than 3.4 million shares traded.
• Analyst sentiment remains cautious: the stock has an average rating of “Hold” and a consensus price target of $71, although ratings range from Buy to Sell and several firms recently lowered their targets.
• The company exceeded quarterly EPS expectations but reported lower-than-expected revenue and 4.1% year-over-year revenue decline; it also offers an annualized $3.51 dividend yielding about 6.5%.

Shares of Edison International (NYSE:EIX - Get Free Report) gapped down prior to trading on Monday . The stock had previously closed at $70.17, but opened at $55.71. Edison International shares last traded at $55.7630, with a volume of 3,414,816 shares trading hands.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on EIX shares. Mizuho reiterated a "neutral" rating and set a $70.00 target price (down from $86.00) on shares of Edison International in a report on Monday. JPMorgan Chase & Co. upped their price objective on Edison International from $75.00 to $76.00 and gave the stock a "neutral" rating in a research report on Friday, May 15th. Weiss Ratings upgraded Edison International from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday. Truist Financial decreased their target price on Edison International from $81.00 to $77.00 and set a "hold" rating for the company in a report on Tuesday, August 4th. Finally, Argus reissued a "hold" rating on shares of Edison International in a research note on Wednesday, August 26th. Three analysts have rated the stock with a Buy rating, eight have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, Edison International currently has an average rating of "Hold" and a consensus target price of $71.00.

Edison International Trading Down 23.2%

The company's fifty day moving average is $74.30 and its two-hundred day moving average is $72.41. The company has a quick ratio of 0.61, a current ratio of 0.66 and a debt-to-equity ratio of 1.95. The stock has a market cap of $20.74 billion, a price-to-earnings ratio of 5.56, a PEG ratio of 5.45 and a beta of 0.66.

Edison International (NYSE:EIX - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The utilities provider reported $1.54 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 during the quarter, compared to analysts' expectations of $4.82 billion. During the same quarter in the previous year, the business posted $0.97 EPS. The firm's 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, research analysts predict that Edison International will post 6.13 EPS for the current fiscal year.

Edison International Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, July 31st. Shareholders of record on Tuesday, July 7th were paid a $0.8775 dividend. The ex-dividend date was Tuesday, July 7th. This represents a $3.51 dividend on an annualized basis and a yield of 6.5%. Edison International's dividend payout ratio (DPR) is currently 36.19%.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in EIX. Jones Financial Companies Lllp raised its position 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 acquiring an additional 5,190 shares in the last quarter. Empowered Funds LLC boosted its holdings in Edison International by 2.4% in the first quarter. Empowered Funds LLC now owns 8,875 shares of the utilities provider's stock valued at $523,000 after purchasing an additional 211 shares in the last quarter. Woodline Partners LP boosted its holdings in Edison International by 40.7% in the first quarter. Woodline Partners LP now owns 32,709 shares of the utilities provider's stock valued at $1,927,000 after purchasing an additional 9,459 shares in the last quarter. Sivia Capital Partners LLC increased its stake in Edison International by 153.6% in the second quarter. Sivia Capital Partners LLC now owns 8,734 shares of the utilities provider's stock valued at $451,000 after purchasing an additional 5,290 shares during the last quarter. Finally, Baird Financial Group Inc. purchased a new position in Edison International in the second quarter valued at approximately $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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