Now Is A Suitable Moment For A Long-Term Purchase Of CMS Energy Corporation (NYSE: CMS)

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    The Vanguard Group, Inc. recently announced the acquisition of new stake in CMS Energy Corporation (NYSE:CMS). The institutional investor has increased its shareholding in the Utilities company by 0.29% to 35.98 million shares with purchase of 0.11 million shares. This fresh investment now brings its stake to 12.57% valued currently at $2.1 billion. In addition, SSgA Funds Management, Inc. raised its holdings by 0.67 million to 16.26 million shares. And Capital Research & Management Co. has lifted its position by 0.01% or 1588.0 shares – to 15.06 million shares.

    With over 1.1 million CMS Energy Corporation (CMS) shares trading Wednesday and a closing price of $63.97 on the day, the dollar volume was approximately $70.35 million. The shares have shown a positive weekly performance of 2.24% and its price on 07/28/20 gained nearly 0.69%. Currently, there are 286.22M common shares owned by the public and among those 284.68M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 21 analysts who have offered their price forecasts for CMS have a consensus price objective of $63.78. The analysts have set the share’s price value over the next 12 months at a high of $73.00 and a low of $58.00 should the stock experience a downside. Incidentally, analysts’ outlook for the CMS Energy Corporation stock is 2.40 for the next 12 months. The average price target is -0.6% below its last price level and a downside to the estimated low will see the stock lose -10.29% over that period. But an upside of 12.37% will see the stock hit the forecast high price target while mean target price for the stock is $63.50.

    Insiders at the company have transacted a total of 94 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 39 of these insider trades were purchases, accounting for 281,993 shares. Insider sales of the common stock occurred on 55 occasions, with total insider shares sold totaling 309,427 shares.

    The top 3 mutual fund holders in CMS Energy Corporation are Washington Mutual Investors Fund, Vanguard Total Stock Market Index, and Vanguard Mid Cap Index Fund. Washington Mutual Investors Fund owns 10.57 million shares of the company’s stock, all valued at over $617.71 million. The company bought an additional 0.47 million shares recently to bring their total holdings to about 3.69% of the shares outstanding. Vanguard Total Stock Market Index sold 16304.0 shares to see its total holdings shrink to 8.17 million shares valued at over $477.09 million and representing 2.85% of the shares outstanding. Vanguard Mid Cap Index Fund sold -0.33 million shares to bring its total holdings to over 7.08 million shares at a value of $413.52 million. Vanguard Mid Cap Index Fund now owns shares totaling to 2.47% of the shares outstanding.

    Shares of CMS Energy Corporation (NYSE: CMS) opened at $62.75, down -$0.78 from a prior closing price of $63.53. However, the script later closed the day at $63.97, up 0.69%. The company’s stock has a 5-day price change of 2.24% and 7.30% over the past three months. CMS shares are trading 1.10% year to date (YTD), with the 12-month market performance up to 7.35% higher. It has a 12-month low price of $46.03 and touched a high of $69.17 over the same period. Currently, 1.1 million shares have been traded, compared to an average intraday trading volume of 1.97 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 4.95%, 8.15%, and 4.43% respectively.

    Institutional ownership of CMS Energy Corporation (NYSE: CMS) shares accounts for 95.50% of the company’s 286.22M shares outstanding. Mutual fund holders own 33.68%, while other institutional holders and individual stakeholders account for 60.73% and 1.31% respectively.

    It has a market capitalization of $18.33B and a beta (3y monthly) value of 0.21. The stock’s trailing 12-month PE ratio is 26.66, while the earnings-per-share (ttm) stands at $2.38. The company has a PEG of 3.77 and a Quick Ratio of 0.80 with the debt-to-equity ratio at 2.77. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.33% over the week and 2.13% over the month.

    Analysts forecast that CMS Energy Corporation (CMS) will achieve an EPS of $0.42 for the current quarter, $0.68 for the next quarter and $2.85 for 2021. The lowest estimate earnings-per-share for the quarter is $0.31 while analysts give the company a high EPS estimate of $0.48. Comparatively, EPS for the current quarter was $0.33 a year ago. Earnings per share for the fiscal year are expected to increase by 3.00%, and 7.68% over the next financial year. EPS should grow at an annualized rate of 7.08% over the next five years, compared to 5.60% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 21 brokerage firm advisors rate CMS Energy Corporation (CMS) as a “Moderate Buy” at a consensus score of 2.40. Specifically, 10 Wall Street analysts polled rate the stock as a buy, while 10 of the 21 advise that investors “hold,” and 1 rated it as a “Sell.”

    Looking at the support for the CMS, a number of firms have released research notes about the stock. BMO Capital Markets stated their Outperform rating for the stock in a research note on July 09, 2020, with the firm’s price target at $63. Seaport Global Securities coverage for the CMS Energy Corporation (CMS) stock in a research note released on May 20, 2020 offered a Buy rating with a price target of $61.50. Barclays was of a view on May 15, 2020 that the stock is Overweight, while Mizuho gave the stock Neutral rating on May 15, 2020, issuing a price target of $55. CFRA on their part issued Hold rating on April 27, 2020.

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