Hsbc Holdings PLC Increases Stock Holdings in FirstEnergy Corporation $FE

Key Points

• HSBC increased its FirstEnergy position by 32.9% in the second quarter, acquiring 282,866 additional shares for a total holding of 1.14 million shares valued at approximately $54.3 million.
• Institutional ownership remains high, with hedge funds and other institutional investors holding 89.41% of FirstEnergy’s stock; several major firms also expanded their positions.
• FirstEnergy reported quarterly EPS of $0.50, matching estimates, while revenue of $3.68 billion exceeded forecasts. The company maintains a $0.465 quarterly dividend, equivalent to a 4.0% yield, and analysts’ consensus rating is “Moderate Buy” with an average price target of $52.83.

Hsbc Holdings PLC raised its position in FirstEnergy Corporation (NYSE:FE - Free Report) by 32.9% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,141,365 shares of the utilities provider's stock after acquiring an additional 282,866 shares during the quarter. Hsbc Holdings PLC owned approximately 0.20% of FirstEnergy worth $54,332,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently bought and sold shares of FE. Boston Partners boosted its stake in shares of FirstEnergy by 13.5% in the third quarter. Boston Partners now owns 18,344,403 shares of the utilities provider's stock valued at $841,161,000 after purchasing an additional 2,185,400 shares during the period. Geode Capital Management LLC increased its stake in FirstEnergy by 1.0% during the 4th quarter. Geode Capital Management LLC now owns 13,463,298 shares of the utilities provider's stock worth $600,351,000 after buying an additional 126,834 shares during the period. Invesco Ltd. increased its stake in FirstEnergy by 0.3% during the 4th quarter. Invesco Ltd. now owns 11,722,471 shares of the utilities provider's stock worth $524,815,000 after buying an additional 34,014 shares during the period. Allspring Global Investments Holdings LLC lifted its holdings in FirstEnergy by 7.5% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 9,971,706 shares of the utilities provider's stock worth $508,158,000 after buying an additional 694,449 shares in the last quarter. Finally, Victory Capital Management Inc. boosted its position in FirstEnergy by 56.0% in the 4th quarter. Victory Capital Management Inc. now owns 5,506,251 shares of the utilities provider's stock valued at $246,515,000 after buying an additional 1,977,504 shares during the period. 89.41% of the stock is currently owned by hedge funds and other institutional investors.

FirstEnergy Stock Performance

NYSE:FE opened at $46.77 on Tuesday. FirstEnergy Corporation has a 1 year low of $42.87 and a 1 year high of $52.34. The stock has a market cap of $27.06 billion, a P/E ratio of 24.88, a P/E/G ratio of 2.70 and a beta of 0.45. The company has a debt-to-equity ratio of 1.88, a quick ratio of 0.45 and a current ratio of 0.54. The stock has a 50-day simple moving average of $47.72 and a 200-day simple moving average of $48.20.

FirstEnergy (NYSE:FE - Get Free Report) last issued its earnings results on Tuesday, July 28th. The utilities provider reported $0.50 earnings per share for the quarter, hitting the consensus estimate of $0.50. The business had revenue of $3.68 billion for the quarter, compared to analyst estimates of $3.51 billion. FirstEnergy had a return on equity of 10.51% and a net margin of 6.86%.During the same quarter last year, the company earned $0.52 EPS. As a group, analysts anticipate that FirstEnergy Corporation will post 2.74 earnings per share for the current fiscal year.

FirstEnergy Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 1st. Shareholders of record on Friday, August 7th were issued a dividend of $0.465 per share. The ex-dividend date of this dividend was Friday, August 7th. This represents a $1.86 dividend on an annualized basis and a yield of 4.0%. FirstEnergy's dividend payout ratio (DPR) is presently 98.94%.

Wall Street Analyst Weigh In

FE has been the subject of several research reports. TD Cowen upgraded shares of FirstEnergy from a "hold" rating to a "buy" rating and dropped their price target for the stock from $56.00 to $53.00 in a research note on Friday, May 15th. Morgan Stanley decreased their target price on FirstEnergy from $53.00 to $52.00 and set an "overweight" rating for the company in a report on Friday, August 21st. UBS Group boosted their target price on FirstEnergy from $50.00 to $51.00 and gave the stock a "neutral" rating in a research note on Thursday, June 11th. Wall Street Zen downgraded FirstEnergy from a "hold" rating to a "sell" rating in a report on Saturday. Finally, Barclays reduced their price target on FirstEnergy from $55.00 to $54.00 and set an "overweight" rating on the stock in a research report on Friday, July 31st. Seven research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, FirstEnergy currently has an average rating of "Moderate Buy" and an average target price of $52.83.

About FirstEnergy

FirstEnergy Corp. NYSE: FE is a U.S.-based electric utility holding company headquartered in Akron, Ohio. The company's primary business is the delivery of electricity through its regulated transmission and distribution utilities, serving residential, commercial and industrial customers across parts of the Midwest and Mid‑Atlantic. FirstEnergy's service territory includes states such as Ohio, Pennsylvania, New Jersey, Maryland and West Virginia, and it operates primarily within the PJM regional transmission organization.

FirstEnergy's core activities center on owning and operating electric distribution networks and transmission systems, maintaining and upgrading grid infrastructure, managing storm response and restoration, and offering customer programs that include energy efficiency and reliability services.

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