FirstEnergy Corp. (FE) Bonds Trading 5.8% Lower
An issue of FirstEnergy Corp. (NYSE:FE) bonds fell 5.8% as a percentage of their face value during trading on Friday. The high-yield issue of debt has a 6.85% coupon and will mature on June 1, 2034. The debt is now trading at $27.25 and was trading at $43.00 last week. Price changes in a company’s bonds in credit markets sometimes predict parallel changes in its share price.
A number of analysts have recently commented on FE shares. Goldman Sachs Group Inc. cut FirstEnergy Corp. from a “neutral” rating to a “sell” rating and cut their target price for the stock from $36.00 to $31.00 in a research report on Tuesday, July 26th. Morgan Stanley upgraded FirstEnergy Corp. from an “equal weight” rating to an “overweight” rating and lifted their target price for the stock from $38.00 to $41.00 in a research report on Monday, August 8th. They noted that the move was a valuation call. Bank of America Corp. upgraded FirstEnergy Corp. from a “neutral” rating to a “buy” rating and cut their target price for the stock from $41.00 to $40.00 in a research report on Monday, August 8th. Jefferies Group restated a “hold” rating and issued a $36.00 price target on shares of FirstEnergy Corp. in a research report on Tuesday, August 16th. Finally, Barclays PLC set a $36.00 price target on FirstEnergy Corp. and gave the company a “hold” rating in a research report on Saturday, September 17th. Three analysts have rated the stock with a sell rating, six have assigned a hold rating and ten have given a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and a consensus target price of $36.19.
FirstEnergy Corp. (NYSE:FE) opened at 31.40 on Friday. The stock’s market cap is $13.37 billion. FirstEnergy Corp. has a 52 week low of $29.62 and a 52 week high of $36.60. The firm’s 50 day moving average price is $32.92 and its 200-day moving average price is $33.52.
FirstEnergy Corp. (NYSE:FE) last posted its quarterly earnings data on Friday, November 4th. The company reported $0.90 EPS for the quarter, beating the Zacks’ consensus estimate of $0.76 by $0.14. FirstEnergy Corp. had a negative net margin of 4.12% and a positive return on equity of 10.06%. During the same quarter last year, the firm earned $0.98 EPS. Analysts expect that FirstEnergy Corp. will post $2.64 EPS for the current year.
The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 1st. Investors of record on Monday, November 7th will be paid a dividend of $0.36 per share. The ex-dividend date is Thursday, November 3rd. This represents a $1.44 dividend on an annualized basis and a dividend yield of 4.59%. FirstEnergy Corp.’s dividend payout ratio is presently -100.70%.
Several hedge funds and other institutional investors have recently bought and sold shares of FE. AQR Capital Management LLC raised its position in FirstEnergy Corp. by 138.4% in the second quarter. AQR Capital Management LLC now owns 9,383,869 shares of the company’s stock worth $327,591,000 after buying an additional 5,447,191 shares in the last quarter. Old Mutual Global Investors UK Ltd. raised its position in FirstEnergy Corp. by 216.2% in the second quarter. Old Mutual Global Investors UK Ltd. now owns 3,365,286 shares of the company’s stock worth $117,482,000 after buying an additional 2,300,984 shares in the last quarter. Franklin Resources Inc. raised its position in FirstEnergy Corp. by 96.3% in the second quarter. Franklin Resources Inc. now owns 4,485,500 shares of the company’s stock worth $156,589,000 after buying an additional 2,200,000 shares in the last quarter. Highbridge Capital Management LLC bought a new position in FirstEnergy Corp. during the second quarter worth approximately $42,845,000. Finally, Vanguard Group Inc. raised its position in FirstEnergy Corp. by 3.8% in the second quarter. Vanguard Group Inc. now owns 31,770,623 shares of the company’s stock worth $1,109,112,000 after buying an additional 1,160,545 shares in the last quarter. Institutional investors and hedge funds own 74.29% of the company’s stock.
About FirstEnergy Corp.
FirstEnergy Corp. is a holding company. The Company operates through three segments: Regulated Distribution, Regulated Transmission and Competitive Energy Services (CES). The Regulated Distribution segment distributes electricity through its approximately 10 utility operating companies. The Regulated Transmission segment transmits electricity through transmission facilities.
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