Edison International Stock Hits 52-Week Low Amid California Fire Investigation
Southern California Edison (SCE) is under scrutiny as fire agencies delve into the possibility that its electrical equipment might have ignited the Hurst Fire in Los Angeles County. This blaze has already consumed hundreds of acres near Sylmar, drawing considerable media focus and public concern.
As investigations unfold, SCE has filed electric safety incident reports for both the Hurst and Eaton Fires. Preliminary findings suggest a circuit issue may have coincided with the start of the Hurst Fire. Historically, SCE has faced legal and financial repercussions for wildfire ignitions, including a $550 million settlement in 2021 and an $80 million agreement with the U.S. Forest Service in 2024.
The ongoing inquiry is compounded by challenging environmental conditions, such as dry vegetation and strong winds, which have heightened the fire’s impact.
Fire Agencies to Investigate SCE’s Potential Link to the Hurst Fire
The investigation into SCE’s potential link to the Hurst Fire is being conducted by multiple fire agencies, focusing on the role of electrical equipment in the fire’s ignition. This is not the first time SCE has been in the spotlight for similar issues.
The company has previously encountered legal challenges, leading to substantial financial settlements. In 2021, SCE agreed to a $550 million settlement for its role in previous wildfire ignitions. More recently, in 2024, it reached an $80 million agreement with the U.S. Forest Service.
These past incidents set a precedent that could influence the current investigation and any subsequent legal actions. The outcome of the investigation could have significant implications for SCE, both legally and financially.
The conditions contributing to the Hurst Fire’s rapid spread include dry vegetation, high winds, and low humidity. These factors have exacerbated the fire’s intensity and made containment efforts more challenging for firefighters.
The ongoing dry spell in the region has left vegetation vulnerable to ignition, while strong winds have facilitated the fire’s expansion across a broad area. As the investigation continues, these environmental conditions are being closely examined to understand their role in the fire’s development and their challenges to firefighting efforts.
Join our Telegram group and never miss a breaking digital asset story.
Edison International (EIX) Stock Takes a Hit, Drops to 52-Week Low
Amidst the ongoing investigations, SCE’s parent company, Edison International (EIX), has experienced notable fluctuations in its stock price.
On January 13, 2025, the stock opened at $64.20, down from its previous close of $65.00. By 10:47 EST, the price had dropped to $57.99, marking a new 52-week low.
The day’s trading range saw a high of $64.34 and a low of $57.91. Despite these declines, EIX maintains a dividend yield of 5.09% and a market cap of approximately $22.45 billion. Analysts have set a target high price of $100.00 and a low of $61.00, with a mean target price of $87.93, indicating a generally optimistic outlook.
EIX’s financial metrics reveal a mixed picture. The company’s debt-to-equity ratio stands at a high 202.13%, which may raise concerns among investors.
However, its forward P/E ratio of 10.18 suggests potential growth opportunities. The trailing EPS is $3.42, with a forward EPS of $5.70, indicating expected earnings improvements. Analysts currently recommend a “Buy” with a recommendation mean of 1.95.
Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.