Consolidated Edison (NYSE:ED) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Friday.
According to Zacks, “Consolidated Edison has a favorable rate decisions history by regulatory authorities, which will likely encourage it to invest more in infrastructure improvements. It continues to follow a systematic capital investment plan for infrastructure development and the expansion of renewable assets. The company is also making notable progress in generating renewable energy. Moreover, the company outperformed the broader industry in past one year. However, the company faces interest rate risk owing to variable rate debt and to new debt financing, needed to fund capital requirements. It also faces commodity price risk related to the purchase and sale of its electricity, gas and related derivative instruments. The management believes that a 10% decline in market prices may result in a decline in fair value of $66 million for the derivative instruments used by the company to hedge purchases of electricity and gas.”
Other equities analysts have also recently issued reports about the stock. Evercore ISI cut shares of Consolidated Edison from an “in-line” rating to an “underperform” rating and set a $74.00 price objective for the company. in a research report on Tuesday, September 26th. Guggenheim reissued a “hold” rating and issued a $88.00 target price on shares of Consolidated Edison in a research report on Wednesday, January 3rd. JPMorgan Chase & Co. began coverage on shares of Consolidated Edison in a research report on Friday, January 12th. They issued an “underweight” rating and a $78.00 target price for the company. ValuEngine raised shares of Consolidated Edison from a “hold” rating to a “buy” rating in a research report on Sunday, December 31st. Finally, Bank of America began coverage on shares of Consolidated Edison in a research report on Tuesday, October 24th. They issued a “buy” rating and a $92.00 target price for the company. Six investment analysts have rated the stock with a sell rating, six have issued a hold rating and three have given a buy rating to the company’s stock. The company presently has an average rating of “Hold” and a consensus target price of $80.29.
Consolidated Edison (NYSE:ED) last released its quarterly earnings data on Thursday, November 2nd. The utilities provider reported $1.47 EPS for the quarter, missing the Zacks’ consensus estimate of $1.54 by ($0.07). Consolidated Edison had a return on equity of 8.42% and a net margin of 10.42%. The company had revenue of $3.21 billion for the quarter, compared to the consensus estimate of $3.14 billion. During the same period last year, the firm earned $1.51 earnings per share. research analysts expect that Consolidated Edison will post 4.1 EPS for the current fiscal year.
Hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. raised its stake in Consolidated Edison by 2.4% in the second quarter. Vanguard Group Inc. now owns 21,821,324 shares of the utilities provider’s stock valued at $1,763,600,000 after purchasing an additional 516,860 shares in the last quarter. APG Asset Management N.V. raised its stake in Consolidated Edison by 38.2% in the third quarter. APG Asset Management N.V. now owns 4,055,555 shares of the utilities provider’s stock valued at $327,202,000 after purchasing an additional 1,121,200 shares in the last quarter. Legal & General Group Plc raised its stake in Consolidated Edison by 5.2% in the third quarter. Legal & General Group Plc now owns 2,930,589 shares of the utilities provider’s stock valued at $236,432,000 after purchasing an additional 144,652 shares in the last quarter. Janus Henderson Group PLC raised its stake in Consolidated Edison by 25.3% in the third quarter. Janus Henderson Group PLC now owns 2,883,134 shares of the utilities provider’s stock valued at $232,610,000 after purchasing an additional 582,457 shares in the last quarter. Finally, Swiss National Bank raised its stake in Consolidated Edison by 0.8% in the third quarter. Swiss National Bank now owns 2,135,071 shares of the utilities provider’s stock valued at $172,258,000 after purchasing an additional 17,800 shares in the last quarter. 55.50% of the stock is owned by institutional investors and hedge funds.
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Consolidated Edison Company Profile
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), Con Edison Clean Energy Businesses, Inc (the Clean Energy Businesses) and Con Edison Transmission, Inc (Con Edison Transmission).
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