Peter J. Taylor, a director at Edison International (NYSE:EIX), has recently sold a portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Taylor sold 1,250 shares of common stock on November 15 at an average price of $83.28 per share. This transaction amounts to a total sale value of $104,100. Following this sale, Taylor retains ownership of 32,372 shares in Edison International.
In other recent news, Edison International has reported strong earnings and revenue results. The company's core earnings per share (EPS) for the third quarter of 2024 was $1.51, with a year-to-date EPS of $3.88. Furthermore, the company has adjusted its 2024 core EPS guidance to a range of $4.80 to $5.00.
Investment banking firm, Jefferies, initiated coverage on Edison International with a Buy rating, indicating a total shareholder return of over 18%. This is based on an expected EPS compound annual growth rate of approximately 7% and an estimated 40-60% recovery from legacy wildfire costs. However, Ladenburg Thalmann has downgraded Edison International's stock rating from Neutral to Sell due to concerns over the company's ability to achieve its long-term EPS growth target of 5%-7%.
Other recent developments include a recovery of approximately $4.5 billion since 2021 and plans for a $1.6 billion securitization after the TKM settlement agreement. Edison International also anticipates electric rates to align with local inflation from 2024 to 2028 and a decrease in the total energy bill for customers by 2045. The timeline for the Woolsey case suggests a potential settlement discussion in about 18 months.
InvestingPro Insights
While Peter J. Taylor's recent sale of Edison International (NYSE:EIX) shares might raise eyebrows, it's essential to consider the broader financial picture of the company. According to InvestingPro data, Edison International boasts a market capitalization of $32.56 billion, reflecting its significant presence in the utility sector. The company's revenue for the last twelve months as of Q3 2024 stood at $17.32 billion, with a notable revenue growth of 10.61% in the most recent quarter.
InvestingPro Tips reveal that Edison International has maintained dividend payments for 21 consecutive years and has raised its dividend for 18 consecutive years. This consistent dividend policy could be attractive to income-focused investors, especially considering the current dividend yield of 3.73%. The company's commitment to shareholder returns is further underscored by its dividend growth of 5.76% over the last twelve months.
However, it's worth noting that Edison International operates with a significant debt burden, which could impact its financial flexibility. Additionally, the stock is trading at a high P/E ratio relative to near-term earnings growth, with a PEG ratio of 3.7, suggesting that the stock might be relatively expensive compared to its growth prospects.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 5 more InvestingPro Tips available for Edison International, providing a deeper understanding of the company's financial health and market position.
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