CMS Energy stock: buy or sell?

CMS stock price: $61.58 -0.90% At close on August 23rd, 2019

Updated on:
August 23rd, 2019

5

After climbing to all-time highs several times in past weeks, CMS Energy decreased -0.90% to $61.58.

CMS Energy Corporation operates as an energy company primarily in Michigan. It operates through three segments: Electric Utility, Gas Utility, and Enterprises.

Should I buy CMS Energy stock?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. That's why is so important to choose your own trading plan that matches with your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, 2 buy setups work for CMS Energy stock right now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is CMS Energy stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we collected 7 ratings published for CMS stock in the last 30 days.

The general sentiment of these ratings is bullish for CMS stock, with 3 positive ratings.
Is CMS a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-16Morgan Stanleyn/aEqual Weight
2019-6-20Barclaysn/aHold
2019-5-16Morgan Stanleyn/aEqual Weight
2019-4-22Credit Suisse Groupn/aBuy
2019-4-11Bank of AmericaNeutralBuy
2019-2-25SunTrust Banksn/aHold
2019-2-22Argusn/aBuy

CMS Energy stock analysis

Daily outlook

After topping to all time highs today, CMS Energy decreased -0.90% today to $61.58.

After climbing to all-time highs several times in past weeks, CMS Energy decreased -0.90% to $61.58. CMS shows a strong short term uptrend with several rising tops and rising bottoms. Since its last bottom on August 13th, CMS climbed unceasignly breaking out to new all time highs. 1">Even closing lower, the session peaked to new all time high just -1 days after the previous top. On May CMS price bounced up over the SMA of 50 days demonstrating to be a significant support for this stock.

CMS stock chart (daily)

Weekly outlook

CMS Energy ended this week at $61.58 after topping to a new all time high ($62.56) and stepped up a slightly fine 0.62%. For 5 weeks in a row, price climbed and marked a profit of 6.36%.

Price pattern shows an uptrend with two rising tops and bottoms, and now finally trading above the $55.54 resistance. By mid January CMS price bounced up over the SMA of 20 weeks that acted as support stopping new slides.

CMS stock chart (weekly)

CMS Energy stock price history

CMS Energy stock historical price chart

CMS stock reached all-time highs today with a price of $62.56.

CMS Energy stock price target is $58.40

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. We detected 7 price predictions for CMS Energy stock released in the last month:
CMS stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-16Morgan StanleyLowers Target$60.00$59.00-1.7%
2019-6-20BarclaysReiteratesn/a$61.00-
2019-5-16Morgan StanleyRaises Target$56.00$57.001.8%
2019-4-22Credit Suisse GroupSet Price Targetn/a$58.00-
2019-4-11Bank of AmericaUpgradesn/a$60.00-
2019-2-25SunTrust BanksReiteratesn/a$56.00-
2019-2-22ArgusRaises Target$56.00$58.003.6%
(in average)$57.30$58.402.0%
The price prediction for CMS Energy stock is $58.40, moving in a range between $61.00 and $56.00.

Financials and fundamental analysis

Earnings date and Earnings per Share

After presenting its last earnings report on April, CMS Energy rocketed a superb 15.19%. As soon as we get its actual EPS from the earnings report, we will extend this report.
CMS earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.33n/a
2017-Q32017-10-260.560.6210.7%
2017-Q42018-02-140.510.510.0%
2018-Q12018-04-260.820.864.9%
2018-Q22018-07-260.410.4817.1%
2018-Q32018-10-250.570.593.5%
2018-Q42019-01-310.410.4-2.4%
2019-Q12019-04-240.87n/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 2018, CMS Energy annual turnover inched a beatiful 4.41% to $6,873.00 M dollars from $6,583.00 marked in 2017. Similarly, its income margin (compared to sales) appreciated to 9.56%, that is $657.00 million.

CMS Energy presents anual results in December, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, CMS Energy TTM sales up to March 2019 were $6,979.00 and income $629.00 M USD. If we compare this TTM figures with the last reported annuality, we can review CMS Energy business evolution since December 2018: Annual turnover up to March, compared to lastest yearly report, gained a tiny 1.54%. Nonetheless, profit margin (net income/revenues) stayed steady at 9.56%.

CMS annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$6,570 M-$452 M6.9%-
2014$7,179 M9.27%$477 M6.6%5.53%
2015$6,456 M-10.07%$523 M8.1%9.64%
2016$6,399 M-0.88%$551 M8.6%5.35%
2017$6,583 M2.88%$460 M7.0%-16.52%
2018$6,873 M4.41%$657 M9.6%42.83%
TTM $6,979 M1.54%$629 M9.0%-4.26%

Quarterly financial results

CMS Energy posted $2,059.00 million in sales for 2019-Q1, a 12.58% improvement compared to previous quarter. Reported quarter income marked $213.00 M with a profit margin of 10.34%. Profit margin grew a 4.44% compared to previous quarter when profit margin was 5.90%. When comparing sales to same quarter last year, CMS Energy sales marked a good growth and jumped a 5.43%. Looking back to recent quarterly results, CMS Energy posted 3 negative quarters in a row.
CMS quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$1,450 M-$92 M6.3%-
2017-Q3$1,530 M5.52%$172 M11.2%86.96%
2017-Q4$1,778 M16.21%$-3 M-0.2%-101.74%
2018-Q1$1,953 M9.84%$241 M12.3%-8,133.33%
2018-Q2$1,492 M-23.60%$139 M9.3%-42.32%
2018-Q3$1,599 M7.17%$169 M10.6%21.58%
2018-Q4$1,829 M14.38%$108 M5.9%-36.09%
2019-Q1$2,059 M12.58%$213 M10.3%97.22%

CMS Energy ownership

When you are planning to buy shares of a company, it's always worth to check its ownership structure.

CMS Energy shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.58% of all shares.

Bearish positions for CMS stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to CMS Energy:

CMSAEEDTEEXCLNT
Market cap$17.5 B$18.5 B$23.5 B$43.6 B$12.4 B
Total shares283.8 M245.6 M183.2 M971.6 M237.4 M
Float shares281.8 M244.5 M181.9 M969.3 M237.0 M
  - Institutional holdings (%)94.5%74.4%74.2%81.6%78.0%
  - Insider holdings (%)0.6%0.4%0.6%0.2%0.2%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

CMS Energy summary

Friday, August 23rd, 2019
Open$62.35
Close$61.58
Day range$61.34 - $62.56
Previous close$62.14
Session gain-0.90%
Average true range$1.04
50d mov avg$58.88
100d mov avg$57.01
200d mov avg$54.13
Daily patternlb03c
Weekly pattern lb02c

CMS Energy performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. In the following table, we compare CMS Energy to Ameren, DTE Energy, Exelon, Alliant Energy, MGE Energy, WEC Energy and Xcel Energy:
Stock3m6m12m
CMSCMS Energy8.30%15.17%28.35%
AEEAmeren0.56%5.71%20.90%
DTEDTE Energy0.42%5.34%18.31%
EXCExelon-8.67%-6.46%5.13%
LNTAlliant Energy7.85%15.93%24.59%
MGEEMGE Energy8.10%15.23%18.12%
WECWEC Energy13.19%22.63%40.81%
XELXcel Energy6.59%14.59%34.16%

CMS Energy competitors

One check before investing in any stock is to have a look a list of its competitors, in this case for CMS Energy. We chose 7 companies as CMS Energy competitors as they are in the same industry or have similar market objectives.