Significant insider selling at CMS Energy, particularly when share price was low, and lack of insider purchases over the last year may suggest insiders think shares are not cheap. While insider ownership indicates some alignment between management and smaller shareholders, caution is advised before buying CMS Energy shares.
Despite the boost from unusual items, it is suggested that CMS Energy's statutory profits may be better than its underlying earnings power. The company's future profitability is also a point of concern for investors.
CMS Energy Corporation's high P/E ratio might be sending bearish signals since its growth forecast aligns merely with the wider market. Current shareholders could face disappointment if the P/E ratio aligns with the growth outlook.
Despite adequate ROE, high debt reliance and low ROE may limit future performance, as sustained borrowing is dependent on fluctuating credit markets. Consequently, investor enthusiasm for this business is currently muted.
John Russell's recent insider sale of CMS Energy shares, the biggest in a year, occurred below current price, possibly indicating an expected decrease in stock value. Without recent insider purchases and insiders selling, buying CMS Energy's stock might be risky.
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