Senior Vice President At CMS Energy Sells $147K Of Stock

Brandon Hofmeister, Senior Vice President at CMS Energy CMS, executed a substantial insider sell on March 5, according to an SEC filing.

What Happened: After conducting a thorough analysis, Hofmeister sold 2,000 shares of CMS Energy. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total transaction value is $147,540.

As of Wednesday morning, CMS Energy shares are down by 0.0%, currently priced at $72.87.

Get to Know CMS Energy Better

CMS Energy is an energy holding company with three principal businesses. Its regulated utility, Consumers Energy, provides regulated natural gas service to 1.8 million customers and electric service to 1.9 million customers in Michigan. NorthStar Clean Energy, formerly CMS Enterprises, is engaged in wholesale power generation, including contracted renewable energy. CMS sold EnerBank in October 2021.

Breaking Down CMS Energy’s Financial Performance

Revenue Growth: CMS Energy’s revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 2.0%. This indicates a substantial increase in the company’s top-line earnings. When compared to others in the Utilities sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Holistic Profitability Examination:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 44.09%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): CMS Energy’s EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 0.876885.

Debt Management: CMS Energy’s debt-to-equity ratio surpasses industry norms, standing at 2.07. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 21.88, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 2.89 is above industry norms, reflecting an elevated valuation for CMS Energy’s stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 12.52, the company’s market valuation exceeds industry averages.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Why Pay Attention to Insider Transactions

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it’s crucial to evaluate them in conjunction with other investment factors.

In legal terms, an “insider” refers to any officer, director, or beneficial owner of more than ten percent of a company’s equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Essential Transaction Codes Unveiled

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of CMS Energy’s Insider Trades.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.