FirstEnergy Corporation (FE) Rating Increased to Buy at Zacks Investment Research
FirstEnergy Corporation (NYSE:FE) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Monday. The firm currently has a $36.00 target price on the utilities provider’s stock. Zacks Investment Research‘s price target would suggest a potential upside of 13.35% from the stock’s current price.
According to Zacks, “Shares of FirstEnergy's have gained higher than the industry in the last three months. FirstEnergy’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. FirstEnergy is also gaining from industrial load growth. The company is working to transform itself into a regulated company by mid of 2018. It has secured regulatory approvals for base rate increase in Pennsylvania, New Jersey and Ohio which are expected to boost its top line in 2017. However, 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.”
Several other analysts also recently commented on FE. ValuEngine downgraded FirstEnergy Corporation from a “buy” rating to a “hold” rating in a research note on Friday, June 2nd. BidaskClub downgraded FirstEnergy Corporation from a “sell” rating to a “strong sell” rating in a research note on Saturday, June 10th. Barclays PLC reaffirmed an “overweight” rating and set a $37.00 price objective (up previously from $36.00) on shares of FirstEnergy Corporation in a research note on Monday, June 19th. Wolfe Research raised FirstEnergy Corporation from an “underperform” rating to a “market perform” rating and raised their price objective for the stock from $30.00 to $32.00 in a research note on Monday, June 26th. Finally, Goldman Sachs Group, Inc. (The) downgraded FirstEnergy Corporation from a “positive” rating to a “neutral” rating in a research note on Monday, June 26th. Fourteen investment analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. The company has a consensus rating of “Hold” and a consensus price target of $34.09.
FirstEnergy Corporation (FE) opened at 31.76 on Monday. The stock’s market cap is $14.11 billion. FirstEnergy Corporation has a one year low of $27.93 and a one year high of $34.96. The stock’s 50 day moving average price is $32.24 and its 200-day moving average price is $30.70.
FirstEnergy Corporation (NYSE:FE) last issued its quarterly earnings data on Thursday, July 27th. The utilities provider reported $0.61 EPS for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.61. The business had revenue of $3.30 billion for the quarter, compared to the consensus estimate of $3.38 billion. FirstEnergy Corporation had a positive return on equity of 15.41% and a negative net margin of 35.59%. The firm’s revenue was down 3.0% compared to the same quarter last year. During the same quarter last year, the business posted $0.56 EPS. On average, analysts predict that FirstEnergy Corporation will post $2.82 earnings per share for the current year.
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A number of hedge funds have recently added to or reduced their stakes in the business. W. E. Donoghue & Co. LLC bought a new position in FirstEnergy Corporation during the 2nd quarter worth about $15,980,000. Griffin Asset Management Inc. bought a new position in FirstEnergy Corporation during the 2nd quarter worth about $1,166,000. Brookfield Asset Management Inc. increased its holdings in FirstEnergy Corporation by 3,345.0% during the 2nd quarter. Brookfield Asset Management Inc. now owns 1,829,980 shares of the utilities provider’s stock worth $53,362,000 after purchasing an additional 1,776,860 shares in the last quarter. Lord Abbett & CO. LLC increased its holdings in FirstEnergy Corporation by 1.7% during the 2nd quarter. Lord Abbett & CO. LLC now owns 164,600 shares of the utilities provider’s stock worth $4,800,000 after purchasing an additional 2,800 shares in the last quarter. Finally, Sentry Investment Management LLC increased its holdings in FirstEnergy Corporation by 0.5% during the 2nd quarter. Sentry Investment Management LLC now owns 35,060 shares of the utilities provider’s stock worth $1,022,000 after purchasing an additional 185 shares in the last quarter. Hedge funds and other institutional investors own 79.86% of the company’s stock.
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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