CMS Energy Corporation (NYSE: CMS) stock fell -0.18% on Friday to $65.78 against a previous-day closing price of $65.90. With 1.41 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.75 million shares. During the session, the Utilities – Regulated Electric company that operates in wider Utilities sector, reached to the highest price of $66.21 whereas the lowest price it dropped to was $65.16. The 52-week range on CMS shows that it touched its highest point at $73.76 and its lowest point at $58.51 during that stretch. It currently has a 1-year price target of $72.59. With its current market cap of 19.03 billion, CMS has annualized dividend of $1.84 while the current yield stands at 2.80%. Beta for the stock currently stands at 0.28.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of CMS was down-trending over the past week, with a drop of -1.29%, but this was down by -5.15% over a month. Three-month performance surged to 2.59% while six-month performance fell -2.75%. The stock gained 6.98% in the past year, while it has gained 1.12% so far this year. A look at the trailing 12-month EPS for CMS yields 2.47 with Next year EPS estimates of 3.13. For the next quarter, that number is 0.66. This implies an EPS growth rate of 4.00% for this year and 8.57% for next year. EPS is expected to grow by 8.55% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 4.00%.
Float and Shares Shorts:
At present, 289.50 million CMS shares are outstanding with a float of 288.27 million shares on hand for trading. On Jul 14, 2022, short shares totaled 4.7 million, which was 1.62% higher than short shares on Jun 14, 2022. In addition to Mr. Garrick J. Rochow as the firm’s Pres, CEO & Director, Mr. Rejji P. Hayes serves as its Exec. VP & CFO.
Through their ownership of 95.79% of CMS’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 60.74% of CMS, in contrast to 33.18% held by mutual funds. Shares owned by individuals account for 1.44%. As the largest shareholder in CMS with 12.19% of the stake, The Vanguard Group, Inc. holds 35,359,567 shares worth 35,359,567. A second-largest stockholder of CMS, BlackRock Fund Advisors, holds 19,709,681 shares, controlling over 6.79% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in CMS, holding 16,773,429 shares or 5.78% stake. With a 2.96% stake in CMS, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 8,597,123 shares are owned by the mutual fund manager. The Vanguard Mid Cap Index Fund, which owns about 2.30% of CMS stock, is the second-largest Mutual Fund holder. It holds 6,660,498 shares valued at 449.85 million. Vanguard 500 Index Fund holds 2.23% of the stake in CMS, owning 6,475,670 shares worth 437.37 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CMS since 20 analysts follow the stock currently. There are 6 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 12 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With CMS analysts setting a high price target of $81.00 and a low target of $67.00, the average target price over the next 12 months is $73.07. Based on these targets, CMS could surge 23.14% to reach the target high and rise by 1.85% to reach the target low. Reaching the average price target will result in a growth of 11.08% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. CMS will report FY 2022 earnings on 02/02/2023. Analysts have provided yearly estimates in a range of $2.90 being high and $2.86 being low. For CMS, this leads to a yearly average estimate of $2.88. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. CMS Energy Corporation surprised analysts by $0.09 when it reported $0.53 EPS against a consensus estimate of $0.44. The surprise factor in the prior quarter was $0.07. Based on analyst estimates, the high estimate for the next quarter is $0.84 and the low estimate is $0.53. The average estimate for the next quarter is thus $0.68.
Summary of Insider Activity:
Insiders traded CMS stock several times over the past three months with 0 Buys and 1 Sells. In these transactions, 0 shares were bought while 179 shares were sold. The number of buy transactions has increased to 40 while that of sell transactions has risen to 29 over the past year. The total number of shares bought during that period was 256,681 while 81,003 shares were sold.