Checking the Overall Picture for Edison International (EIX)

Edison International (EIX) is an interesting player in the Utilities space, with a focus on Electric Utilities. The stock has been active on the tape, currently trading at $68.72, down from yesterday’s close by -1.83%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Money managers are always interested in a company that can find the right recipe of fundamental data because it reflects something important going on underneath the surface. Edison International (EIX) currently trades with a market capitalization of $22.43 Billion. That value represents a market adjusting for revenues that have been falling by -2.52 % on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For EIX, the company currently has $117 Million of cash on the books, which is offset by $1.49 Billion current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $-175 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.93 on a per share basis this quarter. Perhaps, that suggests something about why 90.65% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, Edison International recorded a 52-week high of $83.38. It is now trading 14.66% off that level. The stock is trading $79.03 its 50-day moving average by 10.31%. The stock carved out a 52-week low down at $68.76.

In recent action, Edison International (EIX) has made a move of -13.45% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 17.32, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 1.18% with $325.24 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of EIX.

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