Edison International (EIX): A Good Time To Get In The Game?

Analysts at Wells Fargo cut their rating on shares of Edison International (NYSE:EIX) from Outperform to Market Perform in their opinion released on February 11. BofA/Merrill analysts have downgraded their rating of EIX stock from Neutral to Underperform in a separate flash note to investors on January 15. Analysts at Goldman issued an upgrade from Neutral to Buy for the stock, in a research note that dated back to January 04.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Edison International (NYSE:EIX)’s prospects. The earliest insider trade took place on 11/15/2017. Litzinger Ronald L parted with a total of 224.72 thousand shares of company at average share price of $82. The total for the sales was set at $18.43 million. After this transaction, the Pres. Edison Energy Group, Inc account balance stood at 65.62 thousand shares. The stock lost -28.76 percent since that insider sale. On 08/15/2017, Litzinger Ronald L, Pres. Edison Energy Group, Inc, sold 224.72 thousand shares at a price per share of $80.54. This removed 18.1 million shares from the insider’s fortune and the stock saw a -27.46 percent retreat in value since the news became public. This transaction left 65.62 thousand shares in the Pres. Edison Energy Group, Inc account. On 06/08/2017, Senior Vice President Vasquez Gaddi H. performed a sale transaction worth $203.25 thousand. This sale at $81.3 each has eliminated 2.5 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -28.14 percent decrease since the transaction was reported. The insider now is left with 9.01 thousand shares remaining in the account. White W Brett, who performs the Director job, sold 2.5 thousand shares for $204.18 thousand. The disposal occurred on 06/07/2017 was priced at $81.67 per share. The share price plunged -28.47 percent since the reporting date. White W Brett now left with a stake of 0 thousand EIX stock worth $0 thousand after the insider selling.

Edison International (EIX) is expected to jump by 12.8 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $76 price as 12-month high target. This represents a whopping 30.09 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $66, which represents a return potential of 12.98 percent when compared to the closing price of the stock of $58.42 on Monday, February 11. The lowest price target for the stock is $57 — slightly more than -2.43 percent from EIX’s current share price.

The shares are currently floating around the first support level of $57.78. Below this, the next support is placed in the zone of $57.15. Till the time, the EIX stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 58.62 on daily chart, which may remain a cause for concern. If the price breaks below $57.15 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $58.8 mark may result into a pull-back move towards $59.19 level.

EIX shares accumulated 0.34 points or 0.59 percent on Monday to $58.42 with a light trade volume of 2.805 million shares. After opening the session at $57.6, the shares went as high as $58.55 and as low as $57.53, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $19 billion and now has 326 million shares outstanding. Edison International (EIX) stock has lost -1.55 percent of market value in 21 trading days.

EIX stock has a trailing 3-year beta of -0.05, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $2.84 a share in the trailing twelve months. The stock’s value has surged 2.91 percent year to date (YTD) against a rise of 0.6 percent in 12 month’s time. The company’s shares still trade -17.72 percent away from its 1-year high of $71.00 and 28.4 percent up from 52-week low of $45.50. The average consensus rating on the company is 2.3, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Edison International (EIX) are trading at a P/E ratio of 20.47 times earnings reported for the past 12 months. The industry EIX operates in has an average P/E of 16.29. Its P/E ratio went as low as 15.09X and as high as 20.12 over the 5-year span. Further, it is sporting a 1.48 on the Price-to-Sales ratio. Compare this with the industry average P/S of 3.26. 57.5 percent is the gross profit margin for Edison International and operating margin sits at 11.4 percent. Along with this, the net profit margin is 3.6 percent.

EIX will be showing off its Q4 earnings on February 28. Analysts are forecasting revenue to suffer decline of -2.2 percent to $3.15B in the next fiscal quarter, while earnings are seen soaring by nearly -13.64 percent to $0.95 per share. History has shown that shares in Edison International have gone down on 18 different earnings reaction days and are predicted to add 0.01 percent when the company reports upcoming earnings. In last reported earnings results, it earned $1.56 per share, better than the $1.29, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $4.27B, better than the $3.62B analysts expected. Earnings are estimated to increase by -20.2 percent this year, 8.09 percent next year and continue to increase by 3.75 percent annually for the next 5 years.