Edison International (NYSE:EIX) Shares Gap Down – Time to Sell?

Edison International (NYSE:EIX)’s share price gapped down prior to trading on Monday . The stock had previously closed at $70.17, but opened at $55.71. Edison International shares last traded at $55.7630, with a volume of 3,414,816 shares changing hands.

Edison International News Summary

Here are the key news stories impacting Edison International this week:

• Positive Sentiment: California lawmakers reportedly killed a wildfire bill that did not provide liability protections for investor-owned utilities. The development may reopen the possibility of legislation that limits wildfire-related financial exposure for Edison’s Southern California Edison subsidiary. PG&E Stock, Edison International Rise as California Lawmakers Kill Wildfire Bill
• Positive Sentiment: Traders purchased 23,522 EIX call options, approximately 514% above typical call volume. The activity indicates increased speculative interest and may reflect bets on a rebound, although options volume alone does not establish a lasting change in fundamentals.
• Neutral Sentiment: Bank of America reaffirmed its “neutral” rating but reduced its price target to $51 from $81, implying further downside from the current trading level. The sharply lower target underscores how materially wildfire-liability concerns have changed the risk assessment. Bank of America analyst update
• Neutral Sentiment: Mizuho also maintained a “neutral” rating while cutting its target to $70 from $86. Its target remains above the current price, suggesting potential recovery value if California provides a workable liability framework, but the reduction signals greater uncertainty. Monday’s Top Wall Street Analyst Research Calls
• Negative Sentiment: The underlying concern remains unresolved: recent wildfire legislation omitted the liability cap investors expected, leaving EIX potentially responsible for substantial fire-related costs. Southern California Edison’s call for comprehensive wildfire reform highlights the continuing regulatory, balance-sheet and credit-rating risks. Edison International plunges after California bill omits protections

Analyst Ratings Changes

A number of analysts have issued reports on EIX shares. Truist Financial decreased their price target on Edison International from $81.00 to $77.00 and set a “hold” rating on the stock in a research note on Tuesday, August 4th. Morgan Stanley cut their price target on shares of Edison International from $69.00 to $65.00 and set an “underweight” rating on the stock in a research note on Friday, August 21st. Weiss Ratings raised shares of Edison International from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, August 27th. Barclays restated an “equal weight” rating and set a $75.00 price objective (down from $78.00) on shares of Edison International in a report on Friday, July 31st. Finally, JPMorgan Chase & Co. boosted their price target on Edison International from $75.00 to $76.00 and gave the company a “neutral” rating in a research report on Friday, May 15th. Two investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Reduce” and a consensus price target of $67.18.

Edison International Stock Performance

The company has a current ratio of 0.66, a quick ratio of 0.61 and a debt-to-equity ratio of 1.95. The firm has a market cap of $22.71 billion, a PE ratio of 6.08, a P/E/G ratio of 4.19 and a beta of 0.62. The stock’s 50 day moving average price is $73.66 and its 200 day moving average price is $72.27.

Edison International (NYSE:EIX) last announced its quarterly earnings results on Thursday, July 30th. The utilities provider reported $1.54 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.18 by $0.36. The firm had revenue of $4.36 billion during the quarter, compared to the consensus estimate of $4.82 billion. Edison International had a return on equity of 15.53% and a net margin of 20.30%.The firm’s quarterly revenue was down 4.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.97 EPS. Edison International has set its FY 2026 guidance at 5.900-6.200 EPS. As a group, equities analysts forecast that Edison International will post 6.13 earnings per share for the current fiscal year.

Edison International Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, July 31st. Investors of record on Tuesday, July 7th were given a dividend of $0.8775 per share. This represents a $3.51 annualized dividend and a dividend yield of 5.9%. The ex-dividend date of this dividend was Tuesday, July 7th. Edison International’s dividend payout ratio is currently 36.19%.

Hedge Funds Weigh In On Edison International

Several large investors have recently added to or reduced their stakes in the company. Jones Financial Companies Lllp lifted its position in shares of Edison International by 112.9% in the 1st quarter. Jones Financial Companies Lllp now owns 9,785 shares of the utilities provider’s stock worth $577,000 after buying an additional 5,190 shares during the last quarter. Empowered Funds LLC grew its position in shares of Edison International by 2.4% during the 1st quarter. Empowered Funds LLC now owns 8,875 shares of the utilities provider’s stock valued at $523,000 after buying an additional 211 shares during the last quarter. Woodline Partners LP raised its stake in Edison International by 40.7% during the first quarter. Woodline Partners LP now owns 32,709 shares of the utilities provider’s stock worth $1,927,000 after acquiring an additional 9,459 shares during the period. Sivia Capital Partners LLC raised its stake in Edison International by 153.6% during the second quarter. Sivia Capital Partners LLC now owns 8,734 shares of the utilities provider’s stock worth $451,000 after acquiring an additional 5,290 shares during the period. Finally, Baird Financial Group Inc. bought a new position in Edison International in the second quarter worth about $302,000. 88.95% of the stock is currently owned by institutional investors.

About Edison International

Edison International is a publicly traded utility holding company based in Rosemead, California, whose principal subsidiary is Southern California Edison (SCE). As an electric utility holding company, Edison International oversees the delivery of electricity through SCE’s integrated network of generation procurement, transmission and distribution infrastructure, serving millions of customers across central, coastal and southern California. The company’s operations focus on reliable energy delivery, customer service, regulatory compliance and long-term infrastructure planning for a complex and high-demand service territory.

The company’s activities include procuring and managing a diverse resource mix, maintaining and upgrading transmission and distribution systems, and implementing grid modernization projects.