FirstEnergy Corporation (NYSE:FE) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Tuesday.
According to Zacks, “Shares of FirstEnergy's have declined compared with the industry’s gain in the last twelve months. FirstEnergy’s higher debt/capital ratio compared with peers may further drive up its cost of capital in the rising interest rate environment. In addition, stringent regulatory norms, mild weather and intensifying competition are some of the headwinds. The company’s modernization drive and new generation asset additions will further strengthen its service reliability and lead to customer retention. This has led to its ambitious “Energizing the Future” plan aimed at upgrading and expanding its transmission capabilities. The company is working to transform itself into a regulated company by mid of 2018.”
A number of other research analysts have also weighed in on the stock. ValuEngine upgraded shares of FirstEnergy Corporation from a “hold” rating to a “buy” rating in a research note on Monday. Jefferies Group LLC reissued a “hold” rating and issued a $33.00 price target (up from $31.00) on shares of FirstEnergy Corporation in a report on Monday, July 31st. Deutsche Bank AG reissued a “hold” rating and issued a $34.00 price target (up from $31.00) on shares of FirstEnergy Corporation in a report on Monday, July 31st. BidaskClub raised shares of FirstEnergy Corporation from a “sell” rating to a “hold” rating in a report on Monday, July 24th. Finally, Citigroup Inc. cut their price target on shares of FirstEnergy Corporation from $32.00 to $31.00 and set a “neutral” rating for the company in a report on Wednesday, July 19th. One research analyst has rated the stock with a sell rating, twelve have assigned a hold rating and six have given a buy rating to the stock. The stock currently has a consensus rating of “Hold” and an average target price of $34.09.
FirstEnergy Corporation (FE) traded up 0.44% during midday trading on Tuesday, reaching $31.93. The company’s stock had a trading volume of 1,178,054 shares. The stock has a 50-day moving average price of $30.08 and a 200 day moving average price of $30.27. The company’s market cap is $14.19 billion. FirstEnergy Corporation has a 12 month low of $27.93 and a 12 month high of $34.96.
FirstEnergy Corporation (NYSE:FE) last released its quarterly earnings data on Thursday, July 27th. The utilities provider reported $0.61 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.61. FirstEnergy Corporation had a negative net margin of 35.59% and a positive return on equity of 15.41%. The business had revenue of $3.30 billion during the quarter, compared to analyst estimates of $3.38 billion. During the same period in the previous year, the business earned $0.56 EPS. FirstEnergy Corporation’s revenue was down 3.0% compared to the same quarter last year. Analysts expect that FirstEnergy Corporation will post $2.81 earnings per share for the current fiscal year.
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Several hedge funds have recently bought and sold shares of FE. BP PLC bought a new stake in FirstEnergy Corporation during the first quarter worth about $1,591,000. Washington Trust Bank increased its stake in FirstEnergy Corporation by 522.0% in the first quarter. Washington Trust Bank now owns 13,534 shares of the utilities provider’s stock worth $431,000 after buying an additional 11,358 shares in the last quarter. Achmea Investment Management B.V. bought a new stake in FirstEnergy Corporation during the first quarter worth about $2,387,000. Northpointe Capital LLC increased its stake in FirstEnergy Corporation by 23.0% in the first quarter. Northpointe Capital LLC now owns 127,080 shares of the utilities provider’s stock worth $4,044,000 after buying an additional 23,752 shares in the last quarter. Finally, Sumitomo Mitsui Trust Holdings Inc. increased its stake in FirstEnergy Corporation by 0.7% in the first quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 1,211,746 shares of the utilities provider’s stock worth $38,558,000 after buying an additional 8,487 shares in the last quarter. 78.11% of the stock is owned by institutional investors.
About FirstEnergy Corporation
FirstEnergy Corp. is a holding company. The Company is engaged in holding, directly or indirectly, all of the outstanding equity of its principal subsidiaries. Its segments include Regulated Distribution, Regulated Transmission, Competitive Energy Services (CES) and Corporate/Other. As of December 31, 2016, the Regulated Distribution segment distributed electricity through the Company’s 10 utility operating companies, serving approximately six million customers, and purchased power for its provider of last resort (POLR), standard offer service (SOS), standard offer service (SSO) and default service requirements in Ohio, Pennsylvania, New Jersey and Maryland.
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