Edison International (EIX) Stock Rating Upgraded by Zacks Investment Research
Edison International (NYSE:EIX) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Thursday. The brokerage currently has a $78.00 target price on the stock. Zacks Investment Research’s target price indicates a potential upside of 11.33% from the company’s current price.
According to Zacks, “Edison International remains focused on its transmission and distribution infrastructural development programs, and expansion of its operations. Its SCE unit targets average annual rate base and earnings growth of 7% through 2017 driven by infrastructural investment. In addition, Edison International boasts a solid financial position backed by strong cash generation capacity. However, the company presents a lower risk profile compared to its utility-only peers, with a strong portfolio of regulated utility assets and well-managed merchant energy operations. Meanwhile, any change in environmental rules, adverse decision of regulatory bodies, and power and coal price volatility are causes of concern. Moreover, any adverse decision on a General Rate Case (GRC) will greatly affect the utility's earnings growth, the company’s performance is subject to approvals from regulatory bodies.”
A number of other research firms have also recently commented on EIX. Argus reiterated a “buy” rating and set a $86.00 target price (up from $83.00) on shares of Edison International in a research note on Tuesday, July 5th. Citigroup Inc. lifted their price objective on Edison International from $70.00 to $79.00 and gave the stock a “neutral” rating in a report on Wednesday, July 20th. Jefferies Group reissued a “hold” rating and issued a $80.00 price objective on shares of Edison International in a report on Friday, September 2nd. SunTrust Banks Inc. lifted their price objective on Edison International from $82.00 to $84.00 and gave the stock a “buy” rating in a report on Monday, September 26th. Finally, Deutsche Bank AG lifted their price objective on Edison International from $76.00 to $77.00 and gave the stock a “hold” rating in a report on Friday, July 29th. Nine analysts have rated the stock with a hold rating and seven have issued a buy rating to the company’s stock. The company has a consensus rating of “Hold” and a consensus target price of $76.79.
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Shares of Edison International (NYSE:EIX) opened at 70.06 on Thursday. Edison International has a 52-week low of $57.51 and a 52-week high of $78.72. The company’s 50-day moving average is $72.56 and its 200 day moving average is $73.17. The company has a market cap of $22.83 billion, a PE ratio of 25.98 and a beta of 0.23.
Edison International (NYSE:EIX) last released its earnings results on Thursday, July 28th. The company reported $0.85 EPS for the quarter, missing the Zacks’ consensus estimate of $0.97 by $0.12. The business had revenue of $2.78 billion for the quarter, compared to the consensus estimate of $3.18 billion. Edison International had a return on equity of 9.13% and a net margin of 8.56%. The company’s revenue for the quarter was down 4.5% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.16 earnings per share. On average, analysts anticipate that Edison International will post $3.91 EPS for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Monday, October 31st. Stockholders of record on Friday, September 30th will be paid a dividend of $0.48 per share. The ex-dividend date is Wednesday, September 28th. This represents a $1.92 annualized dividend and a dividend yield of 2.74%. Edison International’s dividend payout ratio (DPR) is presently 71.11%.
In other news, Director Jagjeet S. Bindra sold 3,995 shares of the business’s stock in a transaction that occurred on Wednesday, September 7th. The stock was sold at an average price of $73.80, for a total transaction of $294,831.00. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Ellen O. Tauscher sold 3,012 shares of the business’s stock in a transaction that occurred on Wednesday, September 14th. The shares were sold at an average price of $71.87, for a total value of $216,472.44. The disclosure for this sale can be found here. Insiders own 1.51% of the company’s stock.
Several institutional investors have recently bought and sold shares of the stock. Virginia Retirement System acquired a new position in Edison International during the first quarter valued at about $380,000. M&T Bank Corp boosted its stake in shares of Edison International by 13.0% in the first quarter. M&T Bank Corp now owns 26,263 shares of the company’s stock valued at $1,887,000 after buying an additional 3,015 shares during the last quarter. Aviva PLC boosted its stake in shares of Edison International by 2.3% in the first quarter. Aviva PLC now owns 167,505 shares of the company’s stock valued at $12,042,000 after buying an additional 3,826 shares during the last quarter. NWQ Investment Management Company LLC purchased a new stake in shares of Edison International during the first quarter valued at $52,037,000. Finally, Canada Pension Plan Investment Board boosted its stake in shares of Edison International by 128.9% in the first quarter. Canada Pension Plan Investment Board now owns 433,630 shares of the company’s stock valued at $31,174,000 after buying an additional 244,196 shares during the last quarter. 81.95% of the stock is currently owned by hedge funds and other institutional investors.
About Edison International
Edison International is the parent holding company of Southern California Edison Company (SCE). SCE is engaged in the business of supplying and delivering electricity to an approximately 50,000 square mile area of southern California. It is also the parent company of subsidiaries that are engaged in competitive businesses focused on providing energy services to commercial and industrial customers, including distributed resources, engaging in transmission opportunities, and exploring distributed water treatment and recycling.
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