Miller Joseph, VP & controller, buys Consolidated Edison (ED) shares

Consolidated Edison (ED) reported strong Q2 2025 adjusted EPS of $0.68, surpassing consensus estimates of $0.65, which prompted Mizuho to raise its price target to $112 while maintaining an Outperform rating. The utility also reaffirmed its 6-7% long-term EPS CAGR and declared an 85-cent quarterly dividend, extending its 50-year streak of increases and underscoring its financial stability and 3.51% yield. Further demonstrating strategic initiatives, Brendan Cavanagh, CEO of SBA Communications, was appointed to the Board of Directors.

Analysis

Consolidated Edison (ED) is exhibiting strong operational and financial momentum, underscored by its second-quarter 2025 adjusted earnings of $0.68 per share, which surpassed the consensus estimate of $0.65. This performance prompted a positive revision from Mizuho, which increased its price target to $112.00 while maintaining an Outperform rating. The company's stability is further reinforced by its reaffirmed long-term earnings per share compound annual growth rate (CAGR) guidance of 6% to 7%, a robust target for a utility. Capital return remains a key strength, evidenced by the declaration of an 85-cent quarterly dividend, extending its 50-year streak of consecutive increases and supporting a 3.51% dividend yield. Positive governance signals include the appointment of SBA Communications CEO Brendan Cavanagh to the board, adding external leadership experience, and a modest but affirmative insider purchase by the VP & Controller of 1,056 shares. Collectively, these developments—an earnings beat, positive analyst action, solid forward guidance, and a steadfast dividend policy—paint a picture of a financially sound company executing its strategic plan effectively.

Key Decisions for Investors

• Given the 50-year history of dividend growth and a reaffirmed 6-7% EPS CAGR, income-oriented investors should view Consolidated Edison as a stable, high-quality holding with reliable capital return prospects.
• The combination of a Q2 earnings beat and Mizuho's increased price target to $112 suggests potential for capital appreciation, making the stock a consideration for total return investors, not just those focused purely on yield.
• Investors should monitor the company's execution against its long-term EPS growth targets, as consistent achievement is crucial to justifying the current valuation and sustaining future dividend increases.