FirstEnergy (NYSE:FE) Releases Earnings Results, Hits Expectations

Key Points

• FirstEnergy met earnings expectations, reporting quarterly EPS of $0.50, alongside a 10.66% return on equity and 6.86% net margin.
• The company declared a quarterly dividend of $0.465 per share, or $1.86 annualized, equating to a 3.7% yield; its payout ratio stands at 101.09%.
• FirstEnergy shares traded near $49.71, while analysts maintained a “Moderate Buy” consensus with an average price target of $52.92. Institutional investors own 89.41% of the stock.

FirstEnergy (NYSE:FE - Get Free Report) released its earnings results on Tuesday. The utilities provider reported $0.50 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.50, FiscalAI reports. FirstEnergy had a return on equity of 10.66% and a net margin of 6.86%.

FirstEnergy Price Performance

Shares of FE stock traded up $0.39 on Tuesday, reaching $49.71. The company had a trading volume of 6,061,109 shares, compared to its average volume of 4,768,857. The stock has a market capitalization of $28.75 billion, a PE ratio of 27.02, a price-to-earnings-growth ratio of 2.39 and a beta of 0.47. The company has a quick ratio of 0.42, a current ratio of 0.52 and a debt-to-equity ratio of 1.87. FirstEnergy has a one year low of $41.30 and a one year high of $52.34. The business's 50-day moving average is $47.31 and its 200 day moving average is $48.16.

FirstEnergy Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Friday, August 7th will be paid a dividend of $0.465 per share. The ex-dividend date of this dividend is Friday, August 7th. This represents a $1.86 annualized dividend and a yield of 3.7%. FirstEnergy's payout ratio is presently 101.09%.

Wall Street Analyst Weigh In

FE has been the subject of a number of analyst reports. Jefferies Financial Group boosted their price target on FirstEnergy from $50.00 to $52.00 and gave the company a "hold" rating in a research note on Tuesday, April 21st. Weiss Ratings lowered shares of FirstEnergy from a "buy (b)" rating to a "buy (b-)" rating in a report on Wednesday, June 17th. New Street Research set a $52.00 target price on shares of FirstEnergy in a research report on Tuesday, April 21st. Wolfe Research lowered shares of FirstEnergy from a "strong-buy" rating to a "hold" rating in a research report on Monday, May 4th. Finally, TD Cowen raised shares of FirstEnergy from a "hold" rating to a "buy" rating and decreased their price objective for the company from $56.00 to $53.00 in a research note on Friday, May 15th. Seven analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $52.92.

Institutional Investors Weigh In On FirstEnergy

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. BROOKFIELD Corp ON bought a new position in FirstEnergy in the 4th quarter valued at approximately $110,332,000. Boston Partners grew its stake in shares of FirstEnergy by 13.5% during the third quarter. Boston Partners now owns 18,344,403 shares of the utilities provider's stock worth $841,161,000 after buying an additional 2,185,400 shares during the last quarter. Victory Capital Management Inc. grew its stake in shares of FirstEnergy by 56.0% during the fourth quarter. Victory Capital Management Inc. now owns 5,506,251 shares of the utilities provider's stock worth $246,515,000 after buying an additional 1,977,504 shares during the last quarter. Marshall Wace LLP increased its holdings in shares of FirstEnergy by 128.5% during the third quarter. Marshall Wace LLP now owns 3,275,409 shares of the utilities provider's stock worth $150,079,000 after buying an additional 1,841,946 shares in the last quarter. Finally, Balyasny Asset Management L.P. increased its holdings in shares of FirstEnergy by 5,885.7% during the third quarter. Balyasny Asset Management L.P. now owns 1,251,001 shares of the utilities provider's stock worth $57,321,000 after buying an additional 1,230,101 shares in the last quarter. 89.41% of the stock is owned by institutional investors.

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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