Edison International (NYSE:EIX) Sees Strong Trading Volume – Time to Buy?

Shares of Edison International (NYSE:EIX) saw unusually-high trading volume on Tuesday . 1,890,748 shares traded hands during mid-day trading, a decline of 40% from the previous session’s volume of 3,161,839 shares.The stock last traded at $53.8610 and had previously closed at $53.98.

Key Headlines Impacting Edison International

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

• Positive Sentiment: Unusual options activity provided a limited bullish signal: traders purchased 23,522 EIX call options, representing a 514% increase over average call volume. However, options activity does not necessarily indicate a fundamental improvement.
• Neutral Sentiment: JPMorgan reduced its EIX price target from $82 to $61 and assigned a “neutral” rating, while Mizuho also moved to a neutral stance. The revised JPMorgan target still implies potential upside from the recently quoted share price. Mizuho downgrades Edison International
• Negative Sentiment: Bank of America downgraded Edison International from “buy” to “neutral” and slashed its price target from $81 to $51, citing increased uncertainty around wildfire liability. Stocks on investors’ radar
• Negative Sentiment: California lawmakers reportedly rejected a wildfire bill that did not provide liability protections for utilities. Investors viewed the outcome as a reform setback because it may leave EIX more exposed to potentially significant wildfire-related costs. California wildfire reform setback
• Negative Sentiment: The latest decline followed another analyst price-target reduction, reinforcing concerns that the market is reassessing Edison International’s risk profile after the failed legislation. Why Edison International Stock Withered on Wednesday

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on EIX. Barclays restated an “equal weight” rating and issued a $75.00 price target (down from $78.00) on shares of Edison International in a report on Friday, July 31st. UBS Group decreased their target price on shares of Edison International from $75.00 to $63.00 and set a “neutral” rating for the company in a research report on Tuesday. Bank of America downgraded shares of Edison International from a “buy” rating to a “neutral” rating and lowered their target price for the company from $81.00 to $51.00 in a research note on Tuesday. Mizuho reaffirmed a “neutral” rating and issued a $70.00 price target (down from $86.00) on shares of Edison International in a report on Monday. Finally, JPMorgan Chase & Co. reduced their price target on Edison International from $82.00 to $61.00 and set a “neutral” rating on the stock in a research report on Wednesday. Two investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Reduce” and a consensus target price of $65.82.

Edison International Stock Down 6.2%

The company has a market capitalization of $21.23 billion, a price-to-earnings ratio of 5.69, a PEG ratio of 2.37 and a beta of 0.62. The company has a debt-to-equity ratio of 1.95, a quick ratio of 0.61 and a current ratio of 0.66. The business’s 50 day moving average is $73.28 and its 200 day moving average is $72.17.

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

Edison International Announces Dividend

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

Institutional Trading of Edison International

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Rakuten Investment Management Inc. acquired a new stake in Edison International during the 2nd quarter valued at approximately $4,750,000. Allworth Financial LP purchased a new stake in shares of Edison International in the 2nd quarter valued at $2,586,000. Jupiter Topco LLC acquired a new stake in shares of Edison International in the second quarter worth $3,577,000. Goldman Sachs Group Inc. increased its stake in shares of Edison International by 41.4% in the fourth quarter. Goldman Sachs Group Inc. now owns 5,496,907 shares of the utilities provider’s stock worth $329,924,000 after acquiring an additional 1,609,847 shares during the period. Finally, Patriot Financial Group Insurance Agency LLC purchased a new position in shares of Edison International during the first quarter worth $1,503,000. Institutional investors and hedge funds own 88.95% of the company’s stock.

Edison International Company Profile

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.