Consolidated Edison Inc's (NYSE:ED) Vice President and Controller, Miller Joseph, has recently purchased shares of the company's stock, indicating a positive sentiment towards the utility's future prospects. The transaction, which took place on September 16, 2024, involved the purchase of 0.925 shares at a price of $105.07 per share, totaling approximately $97.
The acquisition of these shares increases Miller's direct ownership in Consolidated Edison to 1,202.880 shares. Additionally, the VP & Controller holds an indirect stake of 114.283 shares through the Tax Reduction Act Stock Ownership Plan (TRASOP), a detail clarified in the footnotes of the report. The footnotes also reveal that Miller's holdings in the company have increased by 13.076, 2.279, and 2.188 shares on June 30, July 31, and August 31 of 2024, respectively, under the Consolidated Edison, Inc. Employee Stock Purchase Plan.
The purchase reflects the executive's confidence in the company and is a signal to investors that the leadership is investing in the company's continued growth and stability. Consolidated Edison, known for its electric and other services combined, remains a significant player in the New York energy market, with its headquarters at 4 Irving Place, New York.
Investors often look to insider transactions as a gauge of the company's health and the management's belief in the business's performance. Miller's recent investment serves as a potential indicator of the company's solid fundamentals or favorable future developments.
This transaction has been publicly disclosed in accordance with SEC regulations, providing transparency into the actions of Consolidated Edison's executives. As the VP & Controller, Miller's investment decisions are closely watched by the market, and this latest purchase may be of interest to current and prospective shareholders alike.
In other recent news, Consolidated Edison reported an adjusted earnings per share (EPS) of $0.59 for the second quarter of 2024, slightly below the BofA Securities estimate but above the consensus. This represents a marginal decrease from the $0.61 reported in the same quarter of the previous year, primarily due to the New York State Public Service Commission's decision in 2023. Despite this, Consolidated Edison has maintained its full-year 2024 EPS guidance, projecting earnings between $5.20 and $5.40.
The company's operating revenue saw a significant increase to $3.22 billion, driven largely by higher demand for cooling during a heatwave. However, the company also experienced a rise in operations and maintenance expenses, which were 13.9% higher than in the same period last year.
In terms of analyst outlooks, BofA Securities raised its price target for Consolidated Edison to $109.00 from the previous $97.00, maintaining a Buy rating. However, Barclays downgraded the company's stock from Equal Weight to Underweight, citing overvaluation and adjusted its price target downward to $92.
Furthermore, Consolidated Edison announced the appointment of Kirkland B. Andrews as the new CFO, following the retirement of Robert Hoglund. Lastly, despite regulatory challenges, the company expects electric volumes to grow in the coming years, as New Yorkers transition from fossil fuels to heat their buildings and power their vehicles. These are among the recent developments for the utility company.
InvestingPro Insights
Consolidated Edison Inc's (NYSE:ED) recent insider share purchase by Vice President and Controller Miller Joseph aligns with a broader view of the company's performance and outlook as seen through InvestingPro metrics. With a market capitalization of $35.74 billion and a P/E ratio standing at 20.07, the company exhibits stability in its valuation. Notably, the utility has shown a commitment to shareholder returns, having raised its dividend for 49 consecutive years—an InvestingPro Tip that underscores the company's long-term approach to investor rewards.
In the last twelve months as of Q2 2024, Consolidated Edison reported a revenue of $14.81 billion, though this reflected a slight decline of 4.7% compared to the previous period. Despite this, the company's gross profit margin remained strong at 52.5%, indicating efficient operations and cost management. Another positive signal for investors is the company's three-month price total return, which stands at an impressive 16.61%. This performance is complemented by the company's dividend yield of 3.18% as of the latest data, making it an attractive option for income-focused investors.
For those considering the company's future, it is worth noting that four analysts have revised their earnings downwards for the upcoming period—an InvestingPro Tip that suggests potential challenges ahead. Nevertheless, the company's stock generally trades with low price volatility, indicating a lower risk profile for investors concerned with market fluctuations. For a deeper dive into the company's metrics and additional InvestingPro Tips, investors can visit https://www.investing.com/pro/ED, where 9 more tips are available to help inform their investment decisions.
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