It makes sense and dollars to buy PG&E Corporation (PCG) stock

PG&E Corporation (NYSE: PCG) stock jumped 1.01% on Friday to $11.02 against a previous-day closing price of $10.91. With 13.78 million shares changed hands, the volume of the stock remained lighter than its average volume of 16.58 million shares. During the session, the Utilities – Regulated Electric company that operates in wider Utilities sector, reached to the highest price of $11.07 whereas the lowest price it dropped to was $10.81. The 52-week range on PCG shows that it touched its highest point at $13.19 and its lowest point at $8.24 during that stretch. It currently has a 1-year price target of $16.46. Beta for the stock currently stands at 1.23.

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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 PCG was up-trending over the past week, with a rise of 4.16%, but this was up by 7.62% over a month. Three-month performance dropped to -12.89% while six-month performance fell -13.84%. The stock gained 23.13% in the past year, while it has lost -9.23% so far this year. A look at the trailing 12-month EPS for PCG yields 0.10 with Next year EPS estimates of 1.22. For the next quarter, that number is 0.19. This implies an EPS growth rate of 95.10% for this year and 10.66% for next year. EPS is expected to grow by 5.57% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -15.10%.

Float and Shares Shorts:

At present, 1.99 billion PCG shares are outstanding with a float of 1.61 billion shares on hand for trading. On Jul 14, 2022, short shares totaled 81.63 million, which was 4.11% higher than short shares on Jun 14, 2022. In addition to Ms. Patricia Kessler Poppe as the firm’s CEO & Director, Mr. Christopher A. Foster serves as its Exec. VP & CFO.

Institutional Ownership:

Through their ownership of 63.06% of PCG’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 44.91% of PCG, in contrast to 29.26% held by mutual funds. Shares owned by individuals account for 22.38%. As the largest shareholder in PCG with 8.79% of the stake, The Vanguard Group, Inc. holds 174,610,307 shares worth 174,610,307. A second-largest stockholder of PCG, Capital Research & Management Co, holds 172,689,006 shares, controlling over 8.69% of the firm’s shares. Fidelity Management & Research Co is the third largest shareholder in PCG, holding 108,994,353 shares or 5.48% stake. With a 4.60% stake in PCG, the American Funds Investment Company is the largest stakeholder. A total of 91,361,505 shares are owned by the mutual fund manager. The American Funds Growth Fund of Ame, which owns about 4.39% of PCG stock, is the second-largest Mutual Fund holder. It holds 87,273,377 shares valued at 870.99 million. Vanguard Total Stock Market Index holds 3.11% of the stake in PCG, owning 61,832,922 shares worth 617.09 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, PCG reported revenue of $5.12B and operating income of $445.00M. Over the past year, revenue came in at $21.63B while operating income stood at $1.93B. It generated $360.00M net income for the quarter, which came to $226.00M over the last twelve months. The EBITDA in the recently reported quarter was $1.38B and diluted EPS was $0.17. EBITDA for the full year was $6.12B.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for PCG since 15 analysts follow the stock currently. There are 10 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 3 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With PCG analysts setting a high price target of $19.00 and a low target of $13.00, the average target price over the next 12 months is $15.96. Based on these targets, PCG could surge 72.41% to reach the target high and rise by 17.97% to reach the target low. Reaching the average price target will result in a growth of 44.83% 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. PCG will report FY 2022 earnings on 02/10/2023. Analysts have provided yearly estimates in a range of $1.11 being high and $1.08 being low. For PCG, this leads to a yearly average estimate of $1.10. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. PG&E Corporation surprised analysts by -$0.03 when it reported $0.25 EPS against a consensus estimate of $0.28. The surprise factor in the prior quarter was $0.05. Based on analyst estimates, the high estimate for the next quarter is $0.27 and the low estimate is -$0.22. The average estimate for the next quarter is thus $0.20.

Summary of Insider Activity:

Insiders traded PCG stock several times over the past three months with 13 Buys and 1 Sells. In these transactions, 156,505 shares were bought while 8,416 shares were sold. The number of buy transactions has increased to 17 while that of sell transactions has risen to 22 over the past year. The total number of shares bought during that period was 228,285 while 100,946,092 shares were sold.

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