What is FirstEnergy Corp. (FE) Stock Return on Shareholders’ Capital?

FirstEnergy Corp. (NYSE: FE) stock fell -2.51% on Monday to $41.14 against a previous-day closing price of $42.20. With 5.87 million shares changed hands, the volume of the stock remained heavier than its average volume of 3.42 million shares. During the session, the Utilities – Diversified company that operates in wider Utilities sector, reached to the highest price of $41.94 whereas the lowest price it dropped to was $41.06. 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 $43.25. With its current market cap of 23.35 billion, FE has annualized dividend of $1.56 while the current yield stands at 3.79%. Beta for the stock currently stands at 0.43.

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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 FE was down-trending over the past week, with a drop of -3.72%, but this was down by -0.27% over a month. Three-month performance surged to 14.02% while six-month performance rose 7.36%. The stock lost -0.70% in the past year, while it has lost -1.91% so far this year. A look at the trailing 12-month EPS for FE yields 2.20 with Next year EPS estimates of 2.49. For the next quarter, that number is 0.52. This implies an EPS growth rate of 22.90% for this year and 2.22% 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, 571.75 million FE shares are outstanding with a float of 571.27 million shares on hand for trading. On Oct 13, 2022, short shares totaled 7.46 million, which was 1.30% higher than short shares on Sep 14, 2022. In addition to Mr. John William Somerhalder II as the firm’s Interim Pres & CEO and Chair of the Board, Mr. K. Jon Taylor serves as its Sr. VP, CFO & Strategy.

Institutional Ownership:

Through their ownership of 89.56% of FE’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 45.68% of FE, in contrast to 42.06% held by mutual funds. Shares owned by individuals account for 0.57%. As the largest shareholder in FE with 11.14% of the stake, The Vanguard Group, Inc. holds 63,671,412 shares worth 63,671,412. A second-largest stockholder of FE, SSgA Funds Management, Inc., holds 44,863,493 shares, controlling over 7.85% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in FE, holding 32,866,124 shares or 5.75% stake. With a 2.89% stake in FE, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 16,515,664 shares are owned by the mutual fund manager. The Vanguard Mid Cap Index Fund, which owns about 2.21% of FE stock, is the second-largest Mutual Fund holder. It holds 12,647,964 shares valued at 530.46 million. Vanguard 500 Index Fund holds 2.20% of the stake in FE, owning 12,555,520 shares worth 526.58 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for FE since 17 analysts follow the stock currently. There are 9 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 5 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 2 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 $38.00, the average target price over the next 12 months is $44.18. Based on these targets, FE could surge 19.11% to reach the target high and fall by -7.63% to reach the target low. Reaching the average price target will result in a growth of 7.39% 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 02/08/2024. Analysts have provided yearly estimates in a range of $2.46 being high and $2.42 being low. For FE, this leads to a yearly average estimate of $2.44. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. FirstEnergy Corp. surprised analysts by $0.00 when it reported $0.79 EPS against a consensus estimate of $0.79. The surprise factor in the prior quarter was $0.01. Based on analyst estimates, the high estimate for the next quarter is $0.55 and the low estimate is $0.50. The average estimate for the next quarter is thus $0.52.

Summary of Insider Activity:

Insiders traded FE stock several times over the past three months with 4 Buys and 1 Sells. In these transactions, 139,502 shares were bought while 21,048 shares were sold. The number of buy transactions has increased to 20 while that of sell transactions has risen to 19 over the past year. The total number of shares bought during that period was 297,533 while 163,690 shares were sold.

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