Edison International (EIX) Upgraded at 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 firm currently has a $78.00 price objective on the stock. Zacks Investment Research’s target price would indicate a potential upside of 11.33% from the company’s previous close.
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 issued reports on EIX. Argus reissued 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. boosted their target price on shares of Edison International from $70.00 to $79.00 and gave the company a “neutral” rating in a research note on Wednesday, July 20th. Jefferies Group reissued a “hold” rating and set a $80.00 target price on shares of Edison International in a research note on Friday, September 2nd. SunTrust Banks Inc. upped their price target on shares of Edison International from $82.00 to $84.00 and gave the stock a “buy” rating in a research note on Monday, September 26th. Finally, Deutsche Bank AG upped their price target on shares of Edison International from $76.00 to $77.00 and gave the stock a “hold” rating in a research note on Friday, July 29th. Nine investment analysts have rated the stock with a hold rating and seven have given a buy rating to the company’s stock. The stock currently has an average rating of “Hold” and a consensus price target of $76.79.
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Edison International (NYSE:EIX) traded up 0.79% during trading on Thursday, reaching $70.61. 104,615 shares of the company’s stock traded hands. The stock has a 50-day moving average price of $72.56 and a 200 day moving average price of $73.17. Edison International has a 1-year low of $57.51 and a 1-year high of $78.72. The stock has a market capitalization of $23.01 billion, a P/E ratio of 26.18 and a beta of 0.23.
Edison International (NYSE:EIX) last posted its earnings results on Thursday, July 28th. The company reported $0.85 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.97 by $0.12. The firm had revenue of $2.78 billion for the quarter, compared to analyst estimates of $3.18 billion. Edison International had a net margin of 8.56% and a return on equity of 9.13%. The company’s revenue for the quarter was down 4.5% on a year-over-year basis. During the same period in the previous year, the firm earned $1.16 earnings per share. Equities research analysts expect that Edison International will post $3.91 earnings per share for the current year.
The company also recently declared a quarterly dividend, which will be paid on Monday, October 31st. Stockholders of record on Friday, September 30th will be issued a dividend of $0.48 per share. The ex-dividend date of this dividend is Wednesday, September 28th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 2.74%. Edison International’s dividend payout ratio is currently 71.11%.
In other Edison International news, Director Jagjeet S. Bindra sold 3,995 shares of the company’s stock in a transaction that occurred on Wednesday, September 7th. The shares were sold at an average price of $73.80, for a total value of $294,831.00. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, insider Ronald L. Litzinger sold 38,084 shares of the company’s stock in a transaction that occurred on Monday, September 12th. The shares were sold at an average price of $72.10, for a total transaction of $2,745,856.40. Following the completion of the transaction, the insider now owns 12,053 shares in the company, valued at approximately $869,021.30. The disclosure for this sale can be found here. Insiders own 1.51% of the company’s stock.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Nexus Investment Management Inc. raised its position in Edison International by 4.9% in the third quarter. Nexus Investment Management Inc. now owns 8,600 shares of the company’s stock valued at $621,000 after buying an additional 400 shares in the last quarter. Nisa Investment Advisors LLC raised its position in Edison International by 56.3% in the third quarter. Nisa Investment Advisors LLC now owns 42,330 shares of the company’s stock valued at $3,058,000 after buying an additional 15,250 shares in the last quarter. Capstone Asset Management Co. raised its position in Edison International by 7.7% in the third quarter. Capstone Asset Management Co. now owns 38,338 shares of the company’s stock valued at $2,770,000 after buying an additional 2,728 shares in the last quarter. Hexavest Inc. raised its position in Edison International by 80.4% in the third quarter. Hexavest Inc. now owns 653,587 shares of the company’s stock valued at $47,222,000 after buying an additional 291,292 shares in the last quarter. Finally, Legacy Private Trust Co. raised its position in Edison International by 21.7% in the third quarter. Legacy Private Trust Co. now owns 53,734 shares of the company’s stock valued at $3,882,000 after buying an additional 9,565 shares in the last quarter. Hedge funds and other institutional investors own 81.95% of the company’s stock.
Edison International Company Profile
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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