Edison International (EIX) Plunges 4.07% Amid Downgrade, Dividend Concerns

Edison International (EIX) shares plummeted 4.07%, hitting their lowest level since March 2020, with an intraday decline of 4.98%.

The strategy of buying EIX shares after they reached a recent low and holding for 1 week showed poor performance over the past 5 years. The annualized return was -1.2%, significantly underperforming the market. This indicates that relying solely on recent price lows as a buying trigger and holding for a short duration is not a viable strategy for EIX.

Wolfe Research recently downgraded Edison International, contributing to a significant drop in its stock price. This downgrade has raised concerns among investors about the company's financial stability and future prospects.

Additionally, there are growing concerns about the sustainability of Edison International's dividend. The company offers a 5.9% dividend yield, but it has burned $1.1 billion in free cash flow over the trailing twelve months. This financial instability has further affected investor sentiment, leading to a decline in stock price.