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31 January 2025

Consolidated Edison Stock Rises 5% Amid Analyst Upgrades

A solid quarterly earnings report boosts investor confidence, leading to stock price increases.

Shares of Consolidated Edison, Inc. (NYSE:ED) saw substantial gains on Monday, January 31, 2025, soaring 5% to close at $95.13. After trading as high as $94.80 earlier in the day, the stock proved strong as 1,651,012 shares exchanged hands, though this was still 23% below the average trading volume of 2,147,737 shares.

The stock previously wrapped up the prior session at $90.60 and has since captured the attention of analysts, some of whom have adjusted their ratings significantly. Recently, Citigroup upgraded its stance from "neutral" to "buy" and lifted the target price from $103.00 to $116.00, believing the stock showed strong potential. On the other side, Morgan Stanley reduced its price target from $88.00 to $85.00, designulating the stock as "underweight" during its research, reflecting the mixed sentiments among professionals.

Other notable changes came from Barclays, which dropped its price objective from $99.00 to $92.00, also designulating it as "underweight," and Scotiabank, which raised its estimate from $90.00 to $100.00 with a "sector perform" rating. The overall consensus maintains a "hold" rating, with the MarketBeat average price target settled at $100.00.

Not only did analysts shift their perspectives, but Consolidated Edison also posted its quarterly earnings data on November 7, 2024, where it reported earnings per share (EPS) of $1.68, exceeding analysts' estimates of $1.56 by $0.12. Its quarterly revenue reached $4.09 billion, which was above the anticipated $4.02 billion, demonstrating consistent financial performance. The company achieved a net margin of 12.27% and recorded return on equity at 8.70%, reflecting its operating efficiency.

Another point of interest for investors concerns the recent announcement of the firm’s dividends. Consolidated Edison declared its upcoming quarterly dividend of $0.85 per share, marking an increase from the previous payout of $0.83. The dividend will be distributed on March 14, 2025, with the record date set for February 19, 2025, presenting investors with attractive dividends and yielding approximately 3.62% annually. The company's dividend payout ratio stands at 62.52%, which indicates the proportion of earnings paid out as dividends and reflects its commitment to returning value to shareholders.

Several institutional investors have either amplified or altered their stakes recently, with KBC Group NV increasing its holdings by 11.1% to own 46,095 shares, valued at about $4.1 million. Point72 Asset Management L.P. also saw significant movement, boosting its shares by 1,766.0% during the third quarter, owning nearly $103 million worth of stock by purchasing 988,961 shares. Other institutions, including FMR LLC, raised their stake by over 82%, demonstrating confidence amid fluctuative market conditions.

Looking forward, analysts remain optimistic about Consolidated Edison's ability to generate strong future earnings, anticipating the company will post EPS of 5.35 for the current fiscal year. The stock’s performance has been under the watchful eyes of investors and market analysts alike, particularly considering the company's role as one of the key providers of electricity and gas services to approximately 3.7 million customers across New York City and Westchester County.

The mixed ratings from analysts and the solid quarterly results indicate interest from institutional investors, presenting potential growth opportunities. Observations surrounding the stock's fluctuations reveal not only its importance within the energy sector but also the resilience of Consolidated Edison as it navigates the competitive utilities market.