Edison International (NYSE:EIX) Trading Down 8.1% After Analyst Downgrade

Edison International (NYSE:EIX) shares were down 8.1% during trading on Wednesday after UBS Group lowered their price target on the stock from $75.00 to $63.00. UBS Group currently has a neutral rating on the stock. Edison International traded as low as $54.46 and last traded at $54.0080. 1,214,015 shares traded hands during trading, a decline of 63% from the average daily volume of 3,289,790 shares. The stock had previously closed at $58.80.

Other research analysts have also issued reports about the stock. Mizuho reissued a “neutral” rating and set a $70.00 target price (down from $86.00) on shares of Edison International in a research note on Monday. Argus reiterated a “hold” rating on shares of Edison International in a report on Wednesday, August 26th. JPMorgan Chase & Co. increased their price objective on shares of Edison International from $75.00 to $76.00 and gave the stock a “neutral” rating in a research report on Friday, May 15th. Truist Financial decreased their target price on Edison International from $81.00 to $77.00 and set a “hold” rating for the company in a research report on Tuesday, August 4th. Finally, Weiss Ratings raised Edison International from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, August 27th. Two analysts have rated the stock with a Buy rating, nine have issued a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Reduce” and an average price target of $67.18.

Key Edison International News

Here are the key news stories impacting Edison International this week:

• Positive Sentiment: Shares are recovering after plunging roughly 23%–24% in the prior session, suggesting some investors view the selloff as overdone. Heavy call-option activity—23,522 calls purchased versus average volume of 3,833—also indicates speculative bullish positioning, although it does not necessarily represent long-term conviction.
• Positive Sentiment: An earlier report that California lawmakers had rejected a wildfire bill lacking utility liability protections initially lifted Edison International and PG&E, as investors interpreted the development as leaving room for a more favorable reform package. PG&E Stock, Edison International Rise as California Lawmakers Kill Wildfire Bill
• Neutral Sentiment: Mizuho assigned Edison International a neutral rating, reinforcing a wait-and-see stance while the market assesses the company’s potential wildfire exposure. Edison International Earns Neutral Rating from Mizuho
• Negative Sentiment: The central negative catalyst is California’s amended wildfire legislation, which reportedly omits the liability protections investors expected. That leaves investor-owned utilities potentially responsible for substantial wildfire damages, raising concerns about earnings volatility, capital needs, credit ratings and access to financing. Edison’s Southern California Edison unit has called for broader wildfire reform. Edison International plunges after California bill omits protections
• Negative Sentiment: Bank of America downgraded EIX from Buy to Neutral and cut its price target to $51 from $81, citing the setback on liability reform. The target implies further downside from the reference price, while the downgrade adds institutional selling pressure. PCG and EIX face wildfire reform setback

Institutional Trading of Edison International

A number of large investors have recently bought and sold shares of EIX. California State Teachers Retirement System lifted its position in shares of Edison International by 7,943.7% during the second quarter. California State Teachers Retirement System now owns 54,771,153 shares of the utilities provider’s stock worth $4,077,712,000 after acquiring an additional 54,090,230 shares in the last quarter. BlackRock Inc. purchased a new stake in Edison International during the 2nd quarter worth about $3,340,412,000. State Street Corp boosted its stake in Edison International by 3.0% in the 4th quarter. State Street Corp now owns 33,141,204 shares of the utilities provider’s stock worth $1,989,135,000 after purchasing an additional 953,800 shares during the period. AQR Capital Management LLC boosted its stake in Edison International by 69.9% in the 4th quarter. AQR Capital Management LLC now owns 18,285,152 shares of the utilities provider’s stock worth $1,097,475,000 after purchasing an additional 7,521,168 shares during the period. Finally, Geode Capital Management LLC grew its holdings in Edison International by 3.1% during the 4th quarter. Geode Capital Management LLC now owns 13,018,379 shares of the utilities provider’s stock valued at $803,407,000 after buying an additional 386,905 shares in the last quarter. 88.95% of the stock is owned by hedge funds and other institutional investors.

Edison International Stock Performance

The stock has a market capitalization of $20.99 billion, a P/E ratio of 5.62, a PEG ratio of 4.19 and a beta of 0.62. The company has a quick ratio of 0.61, a current ratio of 0.66 and a debt-to-equity ratio of 1.95. The company has a 50-day moving average price of $73.66 and a two-hundred day moving average price of $72.27.

Edison International (NYSE:EIX) last released its quarterly earnings results on Thursday, July 30th. The utilities provider reported $1.54 earnings per share for the quarter, topping the consensus estimate of $1.18 by $0.36. The firm had revenue of $4.36 billion for the quarter, compared to analysts’ expectations of $4.82 billion. Edison International had a net margin of 20.30% and a return on equity of 15.53%. The business’s quarterly revenue was down 4.1% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.97 earnings per share. Edison International has set its FY 2026 guidance at 5.900-6.200 EPS. Equities analysts expect that Edison International will post 6.13 earnings per share for the current year.

Edison International Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, July 31st. Investors of record on Tuesday, July 7th were issued a dividend of $0.8775 per share. This represents a $3.51 dividend on an annualized basis and a dividend yield of 6.4%. The ex-dividend date of this dividend was Tuesday, July 7th. Edison International’s dividend payout ratio (DPR) is currently 36.19%.

About Edison International

Edison International is a publicly traded utility holding company based in Rosemead, California, whose principal subsidiary is Southern California Edison (SCE). As an electric utility holding company, Edison International oversees the delivery of electricity through SCE’s integrated network of generation procurement, transmission and distribution infrastructure, serving millions of customers across central, coastal and southern California. The company’s operations focus on reliable energy delivery, customer service, regulatory compliance and long-term infrastructure planning for a complex and high-demand service territory.

The company’s activities include procuring and managing a diverse resource mix, maintaining and upgrading transmission and distribution systems, and implementing grid modernization projects.