Investors Buy High Volume of Call Options on Pacific Gas & Electric (NYSE:PCG)

Key Points

• Unusual options activity: Investors bought 334,812 call options on Pacific Gas & Electric, about 1,144% above the average call volume, signaling a sharp spike in bullish trading interest.
• Analyst sentiment remains mostly positive: Recent reports included higher price targets from JPMorgan, Barclays, and Wells Fargo, with the stock carrying a consensus rating of Moderate Buy and an average target price of $22.40.
• Fundamentals and stock performance: PCG rose 4% to $16.87 after reporting better-than-expected quarterly earnings and revenue, while also maintaining a quarterly dividend of $0.05 per share.

Pacific Gas & Electric Co. (NYSE:PCG - Get Free Report) was the target of some unusual options trading activity on Tuesday. Investors acquired 334,812 call options on the company. This is an increase of 1,144% compared to the average volume of 26,910 call options.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on the stock. JPMorgan Chase & Co. raised their target price on shares of Pacific Gas & Electric from $21.00 to $24.00 and gave the stock an "overweight" rating in a report on Wednesday, March 18th. Weiss Ratings restated a "hold (c)" rating on shares of Pacific Gas & Electric in a report on Friday, March 27th. Wall Street Zen cut shares of Pacific Gas & Electric from a "buy" rating to a "hold" rating in a report on Sunday, May 3rd. Barclays raised their target price on shares of Pacific Gas & Electric from $21.00 to $23.00 and gave the stock an "overweight" rating in a report on Wednesday, February 18th. Finally, Wells Fargo & Company restated an "overweight" rating and issued a $25.00 target price on shares of Pacific Gas & Electric in a report on Tuesday, April 21st. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $22.40.

Pacific Gas & Electric Stock Up 4.0%

Shares of PCG traded up $0.66 during trading hours on Tuesday, hitting $16.87. The company had a trading volume of 20,016,783 shares, compared to its average volume of 22,284,512. The firm has a fifty day moving average price of $17.56 and a 200-day moving average price of $16.62. The company has a debt-to-equity ratio of 1.88, a quick ratio of 1.13 and a current ratio of 1.20. The stock has a market capitalization of $45.20 billion, a price-to-earnings ratio of 13.07, a P/E/G ratio of 0.61 and a beta of 0.29. Pacific Gas & Electric has a 52-week low of $12.97 and a 52-week high of $19.16.

Pacific Gas & Electric (NYSE:PCG - Get Free Report) last issued its earnings results on Thursday, April 23rd. The utilities provider reported $0.43 earnings per share for the quarter, topping analysts' consensus estimates of $0.39 by $0.04. Pacific Gas & Electric had a return on equity of 11.95% and a net margin of 11.44%.The business had revenue of $6.88 billion during the quarter, compared to analyst estimates of $6.20 billion. During the same quarter in the previous year, the firm earned $0.33 EPS. Pacific Gas & Electric's revenue was up 15.0% on a year-over-year basis. Pacific Gas & Electric has set its FY 2026 guidance at 1.640-1.660 EPS. On average, equities research analysts forecast that Pacific Gas & Electric will post 1.65 EPS for the current fiscal year.

Pacific Gas & Electric Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, April 15th. Stockholders of record on Tuesday, March 31st were given a dividend of $0.05 per share. The ex-dividend date of this dividend was Tuesday, March 31st. This represents a $0.20 annualized dividend and a dividend yield of 1.2%. Pacific Gas & Electric's dividend payout ratio is presently 15.50%.

Insider Activity at Pacific Gas & Electric

In related news, EVP Carla J. Peterman sold 31,786 shares of the firm's stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $18.31, for a total value of $582,001.66. Following the sale, the executive vice president directly owned 195,091 shares of the company's stock, valued at $3,572,116.21. This trade represents a 14.01% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP John R. Simon sold 45,607 shares of the firm's stock in a transaction that occurred on Thursday, February 19th. The shares were sold at an average price of $18.00, for a total transaction of $820,926.00. Following the completion of the sale, the executive vice president directly owned 392,303 shares in the company, valued at $7,061,454. This represents a 10.41% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 131,550 shares of company stock valued at $2,301,512. Company insiders own 0.22% of the company's stock.

Institutional Investors Weigh In On Pacific Gas & Electric

Several hedge funds and other institutional investors have recently added to or reduced their stakes in PCG. Dynamic Technology Lab Private Ltd purchased a new stake in Pacific Gas & Electric in the 1st quarter worth approximately $203,000. Empowered Funds LLC increased its holdings in Pacific Gas & Electric by 16.4% in the 1st quarter. Empowered Funds LLC now owns 46,936 shares of the utilities provider's stock worth $806,000 after acquiring an additional 6,601 shares in the last quarter. Woodline Partners LP increased its holdings in Pacific Gas & Electric by 41.2% in the 1st quarter. Woodline Partners LP now owns 185,324 shares of the utilities provider's stock worth $3,184,000 after acquiring an additional 54,033 shares in the last quarter. Focus Partners Wealth boosted its stake in Pacific Gas & Electric by 93.0% in the 1st quarter. Focus Partners Wealth now owns 83,816 shares of the utilities provider's stock worth $1,440,000 after purchasing an additional 40,380 shares during the period. Finally, BI Asset Management Fondsmaeglerselskab A S boosted its stake in Pacific Gas & Electric by 499.7% in the 2nd quarter. BI Asset Management Fondsmaeglerselskab A S now owns 433,064 shares of the utilities provider's stock worth $6,037,000 after purchasing an additional 360,845 shares during the period. 78.56% of the stock is owned by hedge funds and other institutional investors.

About Pacific Gas & Electric

Pacific Gas & Electric NYSE: PCG is an investor-owned utility holding company whose principal operating subsidiary, Pacific Gas and Electric Company, provides electricity and natural gas service in northern and central California. The company's core activities include the generation, procurement, transmission and distribution of electric power, as well as the transmission and distribution of natural gas. PG&E serves a broad mix of residential, commercial, and industrial customers across urban and rural communities within its California service territory.

PG&E's operations encompass utility infrastructure planning and construction, grid operations, customer service and energy procurement.

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