Zacks Investment Research Downgrades Consolidated Edison (ED) to Hold
Zacks Investment Research downgraded shares of Consolidated Edison (NYSE:ED) from a buy rating to a hold rating in a research report released 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.”
Several other research analysts also recently weighed in on ED. Evercore ISI downgraded Consolidated Edison from an in-line rating to an underperform rating and set a $74.00 price target for the company. in a research note on Tuesday, September 26th. Guggenheim restated a hold rating and issued a $88.00 price target on shares of Consolidated Edison in a research note on Wednesday, January 3rd. JPMorgan Chase & Co. started coverage on Consolidated Edison in a research note on Friday, January 12th. They issued an underweight rating and a $78.00 price target for the company. ValuEngine upgraded Consolidated Edison from a hold rating to a buy rating in a research note on Sunday, December 31st. Finally, Bank of America started coverage on Consolidated Edison in a research note on Tuesday, October 24th. They issued a buy rating and a $92.00 price target for the company. Six equities research analysts have rated the stock with a sell rating, six have given a hold rating and three have given a buy rating to the company’s stock. The company has an average rating of Hold and an average price target of $80.29.
Consolidated Edison (NYSE:ED) last announced its quarterly earnings data on Thursday, November 2nd. The utilities provider reported $1.47 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $1.54 by ($0.07). The company had revenue of $3.21 billion for the quarter, compared to the consensus estimate of $3.14 billion. Consolidated Edison had a net margin of 10.42% and a return on equity of 8.42%. During the same quarter last year, the firm posted $1.51 earnings per share. research analysts predict that Consolidated Edison will post 4.1 EPS for the current year.
The company also recently disclosed a quarterly dividend, which will be paid on Thursday, March 15th. Stockholders of record on Wednesday, February 14th will be issued a dividend of $0.715 per share. This represents a $2.86 annualized dividend and a dividend yield of 3.65%. This is a boost from Consolidated Edison’s previous quarterly dividend of $0.69. The ex-dividend date of this dividend is Tuesday, February 13th. Consolidated Edison’s dividend payout ratio is 69.17%.
Institutional investors and hedge funds have recently modified their holdings of the company. WFG Advisors LP raised its holdings in shares of Consolidated Edison by 19.6% during the 2nd quarter. WFG Advisors LP now owns 1,308 shares of the utilities provider’s stock worth $106,000 after acquiring an additional 214 shares in the last quarter. AllSquare Wealth Management LLC purchased a new stake in shares of Consolidated Edison during the 3rd quarter worth approximately $113,000. Asset Dedication LLC purchased a new stake in shares of Consolidated Edison during the 4th quarter worth approximately $183,000. Round Table Services LLC purchased a new stake in shares of Consolidated Edison during the 4th quarter worth approximately $200,000. Finally, Community Bank & Trust Waco Texas purchased a new stake in shares of Consolidated Edison during the 4th quarter worth approximately $208,000. 55.50% of the stock is currently 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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