Wall Street Zen Upgrades CMS Energy (NYSE:CMS) to "Hold"

Key Points

• Wall Street Zen upgraded CMS Energy's rating from "sell" to "hold," indicating a more favorable outlook for the stock.
• Eight analysts have rated CMS Energy as a "Buy," with an average target price of $78.00, while its last closing stock price was $74.72.
• The company reported a 14.4% increase in revenue year-over-year, with earnings per share of $0.71 for the last quarter, surpassing expectations.

CMS Energy (NYSE:CMS - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research note issued to investors on Saturday.

Other equities research analysts also recently issued research reports about the stock. Barclays increased their target price on shares of CMS Energy from $77.00 to $78.00 and gave the company an "overweight" rating in a research note on Tuesday, July 22nd. Morgan Stanley reduced their target price on shares of CMS Energy from $73.00 to $71.00 and set an "equal weight" rating on the stock in a research note on Thursday, September 25th. Wolfe Research reissued a "peer perform" rating on shares of CMS Energy in a research note on Monday, July 7th. KeyCorp increased their target price on shares of CMS Energy from $76.00 to $79.00 and gave the company an "overweight" rating in a research note on Wednesday. Finally, Weiss Ratings reissued a "buy (b-)" rating on shares of CMS Energy in a research note on Wednesday, October 8th. Eight equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat.com, CMS Energy has an average rating of "Moderate Buy" and an average target price of $78.00.

CMS Energy Price Performance

CMS stock opened at $74.72 on Friday. CMS Energy has a 52 week low of $63.97 and a 52 week high of $76.45. The company has a quick ratio of 0.77, a current ratio of 1.00 and a debt-to-equity ratio of 1.93. The company has a fifty day simple moving average of $72.24 and a two-hundred day simple moving average of $71.67. The firm has a market capitalization of $22.37 billion, a P/E ratio of 22.11, a price-to-earnings-growth ratio of 2.85 and a beta of 0.40.

CMS Energy (NYSE:CMS - Get Free Report) last released its quarterly earnings data on Thursday, July 31st. The utilities provider reported $0.71 EPS for the quarter, beating the consensus estimate of $0.67 by $0.04. CMS Energy had a net margin of 12.76% and a return on equity of 12.07%. The business had revenue of $1.84 billion during the quarter, compared to analyst estimates of $1.68 billion. During the same quarter last year, the business earned $0.66 earnings per share. CMS Energy's quarterly revenue was up 14.4% compared to the same quarter last year. CMS Energy has set its FY 2025 guidance at 3.540-3.600 EPS. Analysts anticipate that CMS Energy will post 3.59 earnings per share for the current fiscal year.

Insider Activity

In related news, SVP Brandon J. Hofmeister sold 2,000 shares of the firm's stock in a transaction dated Friday, August 8th. The shares were sold at an average price of $73.62, for a total value of $147,240.00. Following the transaction, the senior vice president owned 68,036 shares of the company's stock, valued at $5,008,810.32. This trade represents a 2.86% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, SVP Lauren Y. Snyder sold 2,220 shares of the firm's stock in a transaction dated Friday, September 5th. The stock was sold at an average price of $71.26, for a total transaction of $158,197.20. Following the completion of the transaction, the senior vice president directly owned 13,512 shares in the company, valued at $962,865.12. This represents a 14.11% decrease in their position. The disclosure for this sale can be found here. Company insiders own 0.40% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in CMS. HM Payson & Co. increased its position in CMS Energy by 65.6% during the 3rd quarter. HM Payson & Co. now owns 356 shares of the utilities provider's stock valued at $26,000 after purchasing an additional 141 shares during the period. AlphaQuest LLC increased its position in CMS Energy by 285.5% during the 1st quarter. AlphaQuest LLC now owns 451 shares of the utilities provider's stock valued at $34,000 after purchasing an additional 334 shares during the period. Trust Co. of Vermont increased its position in CMS Energy by 127.7% during the 2nd quarter. Trust Co. of Vermont now owns 535 shares of the utilities provider's stock valued at $37,000 after purchasing an additional 300 shares during the period. Tobam increased its position in CMS Energy by 35.0% during the 2nd quarter. Tobam now owns 559 shares of the utilities provider's stock valued at $39,000 after purchasing an additional 145 shares during the period. Finally, Capital A Wealth Management LLC increased its position in CMS Energy by 2,870.0% during the 2nd quarter. Capital A Wealth Management LLC now owns 594 shares of the utilities provider's stock valued at $41,000 after purchasing an additional 574 shares during the period. Hedge funds and other institutional investors own 93.57% of the company's stock.

CMS Energy Company Profile

CMS Energy Corporation operates as an energy company primarily in Michigan. The company operates through three segments: Electric Utility; Gas Utility; and Enterprises. The Electric Utility segment is involved in the generation, purchase, transmission, distribution, and sale of electricity. This segment generates electricity through coal, wind, gas, renewable energy, oil, and nuclear sources.

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