In a remarkable display of resilience amid a volatile market, Consolidated Edison (NYSE:ED)'s stock has soared to an all-time high, reaching a price level of $106. This milestone underscores the utility company's strong performance over the past year, which has seen its stock value climb by an impressive 19.39%. Investors have shown increased confidence in Consolidated Edison, often seen as a stable investment in the energy sector, propelling the stock to new heights and outperforming many of its peers during this period.
In other recent news, Consolidated Edison experienced a flurry of analyst activity. Citi upgraded the utility company's stock from Neutral to Buy and raised the price target to $116, citing anticipated positive outcomes from upcoming rate cases. Conversely, Barclays downgraded Consolidated Edison's stock from Equal Weight to Underweight and adjusted the price target to $92, citing overvaluation. Jefferies initiated coverage on Consolidated Edison with a Hold rating, pointing to the upcoming decisions on Returns on Equity (ROEs) as potential influencers of the company's financial performance.
The company reported an adjusted earnings per share (EPS) of $0.59 for the second quarter of 2024 and an increase in operating revenue to $3.22 billion, primarily driven by higher demand for cooling during a heat wave. However, operations and maintenance expenses rose by 13.9% compared to the same period last year. Despite these changes, Consolidated Edison maintained its full-year 2024 EPS guidance, projecting earnings between $5.20 and $5.40.
In other company news, the New York State Department of Public Service supported rate cases for Consolidated Edison's subsidiary Orange & Rockland (O&R). Another subsidiary, Consolidated Edison Company of New York (CECONY), adjusted its expected growth rate of peak gas demand for the period from 2025 to 2029. Lastly, Kirkland B. Andrews was appointed as the new CFO of Consolidated Edison, following the retirement of Robert Hoglund. These are the latest developments in the company's ongoing operations.
InvestingPro Insights
Consolidated Edison's recent stock performance aligns with several key insights from InvestingPro. The company's stock is currently trading near its 52-week high, with a robust 21.27% total return over the past year. This performance is further bolstered by a strong 15.1% return over the last three months, indicating sustained investor confidence.
InvestingPro data reveals that Consolidated Edison boasts a market capitalization of $36.59 billion, reflecting its significant presence in the utility sector. The company's P/E ratio of 20.41 suggests that investors are willing to pay a premium for its shares, possibly due to its stability and dividend history.
Speaking of dividends, InvestingPro Tips highlight that Consolidated Edison has raised its dividend for an impressive 49 consecutive years and has maintained dividend payments for 54 years straight. This remarkable track record of consistent payouts, coupled with a current dividend yield of 3.22%, makes it an attractive option for income-focused investors.
For those interested in a deeper analysis, InvestingPro offers 7 additional tips for Consolidated Edison, providing a more comprehensive view of the company's financial health and market position.
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