EIX Stock Down 5%: Wildfires and Uncertainty Weigh on Edison International
Friday, Jan 10, 2025 1:36 pm ET
4min read
EIX --
Edison International (EIX) stock fell 5% in mid-day trading on Jan 10, 2025, reaching an intraday low of $65.10. This decline can be attributed to the ongoing wildfires in California, which have raised concerns about the company's utility, Southern California Edison (SCE), and its potential liability. The stock's performance can be analyzed by comparing this decline to its historical volatility and performance.
Firstly, let's consider the stock's 52-week range. As of Jan 10, 2025, the stock was trading at $65.13, which is 26.63% below its 52-week high of $88.77 and 3.14% above its 52-week low of $63.15. This indicates that the stock has experienced a significant decline from its peak and is currently trading closer to its low.
Secondly, let's examine the stock's trading volume. On Jan 10, 2025, the stock's trading volume was 6,115,039 shares, which is 256.9% of the average daily volume of 2,380,001 shares. This high trading volume suggests that there is significant interest in the stock, and the decline may be a result of investors selling their shares due to the wildfire concerns.
Thirdly, let's consider the stock's historical performance. As of Jan 10, 2025, the stock's year-to-date (YTD) performance was -12.54%. This decline is significant, as it indicates that the stock has lost a substantial amount of value since the beginning of the year. However, it is important to note that the stock's YTD performance may not be solely due to the wildfires, as other factors may have contributed to its decline.
In conclusion, the decline in Edison International's stock can be attributed to the wildfires in California, which have raised concerns about the company's utility and its potential liability. The stock's decline is significant, as it is trading closer to its 52-week low and has experienced a substantial decline in its YTD performance. The high trading volume suggests that there is significant interest in the stock, and the decline may be a result of investors selling their shares due to the wildfire concerns. However, it is important to note that the stock's performance may be influenced by other factors as well.
Analysts have a mixed outlook on EIX stock following its recent decline. While the average price target is $89.51, with a high estimate of $100.00 and a low estimate of $71.00, the average brokerage recommendation is 2.2, indicating an "Outperform" status. The consensus recommendation from 18 analysts is a "Buy" rating, with 4 analysts rating the stock as a "Strong Buy" and 14 analysts rating it as a "Buy." However, investors remain cautious due to the uncertainty surrounding the wildfires and their potential impact on Edison International's operations and financials.