FirstEnergy Corp. (NYSE: FE) stock fell -2.07% on Friday to $39.68 against a previous-day closing price of $40.52. With 4.05 million shares changed hands, the volume of the stock remained heavier than its average volume of 3.72 million shares. During the session, the Utilities – Diversified company that operates in wider Utilities sector, reached to the highest price of $40.79 whereas the lowest price it dropped to was $39.59. The 52-week range on FE shows that it touched its highest point at $48.85 and its lowest point at $35.32 during that stretch. It currently has a 1-year price target of $44.70. With its current market cap of 21.70 billion, FE has annualized dividend of $1.56 while the current yield stands at 3.93%. Beta for the stock currently stands at 0.42.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of FE was up-trending over the past week, with a rise of 1.51%, but this was up by 0.89% over a month. Three-month performance dropped to -7.59% while six-month performance fell -5.43%. The stock gained 3.17% in the past year, while it has lost -4.59% so far this year. A look at the trailing 12-month EPS for FE yields 2.38 with Next year EPS estimates of 2.53. For the next quarter, that number is 0.80. This implies an EPS growth rate of 22.90% for this year and 5.20% for next year. EPS is expected to decline by -2.42% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 11.90%.
Float and Shares Shorts:
At present, 571.00 million FE shares are outstanding with a float of 540.80 million shares on hand for trading. On Jul 14, 2022, short shares totaled 6.34 million, which was 1.11% higher than short shares on Jun 14, 2022. In addition to Mr. John William Somerhalder II as the firm’s Chair of the Board, Mr. Steven E. Strah serves as its Pres, CEO & Director.
Through their ownership of 86.35% of FE’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 46.91% of FE, in contrast to 37.54% held by mutual funds. Shares owned by individuals account for 0.56%. As the largest shareholder in FE with 11.52% of the stake, The Vanguard Group, Inc. holds 65,791,207 shares worth 65,791,207. A second-largest stockholder of FE, SSgA Funds Management, Inc., holds 43,839,325 shares, controlling over 7.68% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in FE, holding 32,459,963 shares or 5.69% stake. With a 2.80% stake in FE, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 15,991,195 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.21% of FE stock, is the second-largest Mutual Fund holder. It holds 12,641,154 shares valued at 485.29 million. Vanguard Mid Cap Index Fund holds 2.19% of the stake in FE, owning 12,487,685 shares worth 479.4 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2022, FE reported revenue of $2.82B and operating income of $447.00M. Over the past year, revenue came in at $11.59B while operating income stood at $1.86B. It generated $187.00M net income for the quarter, which came to $1.36B over the last twelve months. The EBITDA in the recently reported quarter was $955.00M and diluted EPS was $0.33. EBITDA for the full year was $4.25B.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for FE since 18 analysts follow the stock currently. There are 9 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 7 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With FE analysts setting a high price target of $49.00 and a low target of $39.00, the average target price over the next 12 months is $44.66. Based on these targets, FE could surge 23.49% to reach the target high and fall by -1.71% to reach the target low. Reaching the average price target will result in a growth of 12.55% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. FE will report FY 2022 earnings on 02/09/2023. Analysts have provided yearly estimates in a range of $2.46 being high and $2.37 being low. For FE, this leads to a yearly average estimate of $2.41. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. FirstEnergy Corp. surprised analysts by $0.01 when it reported $0.53 EPS against a consensus estimate of $0.52. The surprise factor in the prior quarter was -$0.02. Based on analyst estimates, the high estimate for the next quarter is $0.83 and the low estimate is $0.75. The average estimate for the next quarter is thus $0.78.
Summary of Insider Activity:
Insiders traded FE stock several times over the past three months with 2 Buys and 1 Sells. In these transactions, 1,211 shares were bought while 13,818 shares were sold. The number of buy transactions has increased to 26 while that of sell transactions has risen to 17 over the past year. The total number of shares bought during that period was 167,300 while 137,096 shares were sold.