Zacks Investment Research Lowers Consolidated Edison Inc. (ED) to Sell
Consolidated Edison Inc. (NYSE:ED) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Wednesday.
According to Zacks, “Consolidated Edison’s operations are subject to federal, state and local regulations, which means that any change these could interrupt the operations of its generating units, thereby affecting its financial performance. Disruption in wholesale energy markets could hurt the company’s ability to meet customer energy needs and thus weigh on its performance. Again, adverse decisions by the commissions in pending regulatory cases may negatively impact the company’s earnings. That said, Consolidated Edison has a history of favorable rate decisions by regulatory authorities, which will likely encourage it to invest more in infrastructure improvement. Moreover, the company follows a systematic capital investment plan for infrastructure development and reliability projects.”
Other analysts have also recently issued reports about the company. Vetr upgraded Consolidated Edison from a “hold” rating to a “buy” rating and set a $77.14 target price on the stock in a report on Wednesday, September 14th. Jefferies Group upgraded Consolidated Edison from a “hold” rating to a “buy” rating and set a $82.00 target price on the stock in a report on Wednesday, September 14th. Barclays PLC reduced their target price on Consolidated Edison from $80.00 to $77.00 and set an “equal weight” rating on the stock in a report on Wednesday. BMO Capital Markets started coverage on Consolidated Edison in a report on Wednesday, June 22nd. They issued a “hold” rating and a $79.00 target price on the stock. Finally, Citigroup Inc. started coverage on Consolidated Edison in a report on Friday, August 12th. They issued a “neutral” rating and a $76.00 target price on the stock. They noted that the move was a valuation call. Five equities research analysts have rated the stock with a sell rating, four have given a hold rating and two have assigned a buy rating to the company’s stock. Consolidated Edison has a consensus rating of “Hold” and a consensus price target of $75.06.
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Consolidated Edison (NYSE:ED) traded down 0.033% during mid-day trading on Wednesday, hitting $76.515. 642,618 shares of the stock were exchanged. The company has a market capitalization of $23.29 billion and a PE ratio of 19.828. The stock has a 50 day moving average price of $76.30 and a 200 day moving average price of $76.10. Consolidated Edison has a 1-year low of $60.30 and a 1-year high of $81.88.
Consolidated Edison (NYSE:ED) last released its quarterly earnings results on Thursday, August 4th. The company reported $0.60 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.69 by $0.09. Consolidated Edison had a return on equity of 8.88% and a net margin of 9.47%. During the same period in the prior year, the firm earned $0.78 EPS. On average, equities analysts anticipate that Consolidated Edison will post $3.97 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which was paid on Thursday, September 15th. Stockholders of record on Wednesday, August 17th were given a dividend of $0.67 per share. This represents a $2.68 dividend on an annualized basis and a dividend yield of 3.50%. The ex-dividend date was Monday, August 15th. Consolidated Edison’s payout ratio is 69.25%.
Several institutional investors have recently modified their holdings of the company. Norges Bank bought a new stake in Consolidated Edison during the fourth quarter worth approximately $118,109,000. Capstone Asset Management Co. raised its stake in Consolidated Edison by 2.3% in the first quarter. Capstone Asset Management Co. now owns 39,217 shares of the company’s stock worth $3,005,000 after buying an additional 890 shares during the last quarter. Carroll Financial Associates Inc. raised its stake in Consolidated Edison by 4.0% in the first quarter. Carroll Financial Associates Inc. now owns 3,733 shares of the company’s stock worth $286,000 after buying an additional 145 shares during the last quarter. Raymond James Trust N.A. raised its stake in Consolidated Edison by 12.9% in the first quarter. Raymond James Trust N.A. now owns 28,993 shares of the company’s stock worth $2,221,000 after buying an additional 3,323 shares during the last quarter. Finally, OLD National Bancorp IN raised its stake in Consolidated Edison by 14.1% in the first quarter. OLD National Bancorp IN now owns 24,352 shares of the company’s stock worth $1,866,000 after buying an additional 3,015 shares during the last quarter. 54.76% of the stock is currently owned by institutional investors.
About Consolidated Edison
Consolidated Edison, Inc (Con Edison) is a holding company. The Company operates through its subsidiaries, which include Consolidated Edison Company of New York, Inc (CECONY), Orange and Rockland Utilities, Inc (O&R) and Con Edison Transmission, Inc It owns competitive energy businesses. The Company also owns Con Edison Transmission, Inc (Con Edison Transmission), which invests in electric and gas transmission projects through its subsidiaries, Consolidated Edison Transmission, LLC (CET Electric) and Con Edison Gas Midstream, LLC (CET Gas).
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