Pacific Gas & Electric Sees Unusually High Options Volume (NYSE:PCG)

Key Points

• Options activity surged: Traders bought 438,185 PCG call options on Monday, about 275% above the typical daily volume.
• Insider trades were mixed: Director John Larsen bought 7,500 shares for $91,500, while Director William Fugate sold 6,500 shares under a pre-arranged trading plan.
• Recent results fell short of expectations: PG&E reported quarterly EPS of $0.41 versus the $0.42 consensus and revenue of $6.19 billion versus $6.82 billion expected. Analysts’ average rating was “Hold,” with an average price target of $17.21.

Pacific Gas & Electric Co. (NYSE:PCG - Get Free Report) was the target of unusually large options trading on Monday. Traders acquired 438,185 call options on the company. This is an increase of approximately 275% compared to the typical daily volume of 116,945 call options.

Insider Activity at Pacific Gas & Electric

In other Pacific Gas & Electric news, Director John Larsen purchased 7,500 shares of the firm's stock in a transaction that occurred on Wednesday, September 30th. The stock was purchased at an average price of $12.20 per share, for a total transaction of $91,500.00. Following the purchase, the director directly owned 36,685 shares in the company, valued at approximately $447,557. This trade represents a 25.70% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director William Fugate sold 6,500 shares of Pacific Gas & Electric stock in a transaction on Friday, September 4th. The stock was sold at an average price of $13.76, for a total value of $89,440.00. Following the transaction, the director directly owned 73,530 shares of the company's stock, valued at $1,011,772.80. This trade represents a 8.12% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.22% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of PCG. Performa Ltd US LLC bought a new position in shares of Pacific Gas & Electric during the 3rd quarter worth approximately $43,000. Fulcrum Asset Management LLP raised its position in shares of Pacific Gas & Electric by 4,794.5% in the third quarter. Fulcrum Asset Management LLP now owns 185,795 shares of the utilities provider's stock valued at $2,263,000 after purchasing an additional 181,999 shares during the period. Sterling Capital Management LLC increased its position in shares of Pacific Gas & Electric by 23.6% during the third quarter. Sterling Capital Management LLC now owns 81,861 shares of the utilities provider's stock valued at $1,003,000 after buying an additional 15,622 shares during the period. Fox Hill Wealth Management bought a new stake in Pacific Gas & Electric during the second quarter valued at $1,818,000. Finally, Rakuten Investment Management Inc. purchased a new stake in Pacific Gas & Electric in the second quarter valued at approximately $6,210,000. Institutional investors and hedge funds own 78.56% of the company's stock.

Pacific Gas & Electric Stock Performance

Shares of NYSE:PCG traded up $0.17 during trading on Monday, hitting $13.14. 24,443,871 shares of the stock traded hands, compared to its average volume of 26,945,426. The company has a fifty day moving average price of $13.16 and a two-hundred day moving average price of $16.17. Pacific Gas & Electric has a 52-week low of $11.77 and a 52-week high of $19.16. The company has a market cap of $35.21 billion, a price-to-earnings ratio of 9.73, a P/E/G ratio of 1.04 and a beta of 0.17. The company has a quick ratio of 0.97, a current ratio of 1.03 and a debt-to-equity ratio of 1.85.

Pacific Gas & Electric (NYSE:PCG - Get Free Report) last released its earnings results on Thursday, October 22nd. The utilities provider reported $0.41 EPS for the quarter, missing the consensus estimate of $0.42 by ($0.01). The firm had revenue of $6.19 billion during the quarter, compared to analysts' expectations of $6.82 billion. Pacific Gas & Electric had a return on equity of 11.49% and a net margin of 12.00%. The firm's revenue was down 1.0% on a year-over-year basis. During the same period in the previous year, the firm posted $0.50 earnings per share. As a group, equities analysts predict that Pacific Gas & Electric will post 1.65 EPS for the current year.

Pacific Gas & Electric Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 15th. Shareholders of record on Wednesday, September 30th were given a dividend of $0.05 per share. The ex-dividend date was Wednesday, September 30th. This represents a $0.20 annualized dividend and a yield of 1.5%. Pacific Gas & Electric's dividend payout ratio (DPR) is presently 14.81%.

Wall Street Analyst Weigh In

PCG has been the subject of several recent research reports. Jefferies Financial Group cut their price target on Pacific Gas & Electric from $19.00 to $14.00 in a research note on Wednesday, October 21st. BMO Capital Markets lifted their price objective on Pacific Gas & Electric from $21.00 to $22.00 and gave the stock a "market perform" rating in a report on Monday, October 26th. JPMorgan Chase & Co. lowered their target price on shares of Pacific Gas & Electric from $18.00 to $17.00 and set an "overweight" rating on the stock in a research note on Monday, October 12th. LADENBURG THALM/SH SH lowered their price target on Pacific Gas & Electric from $22.00 to $15.50 and set a "buy" rating on the stock in a research report on Tuesday, October 6th. Finally, Wells Fargo & Company decreased their price objective on shares of Pacific Gas & Electric from $24.00 to $14.00 and set an "equal weight" rating on the stock in a research report on Friday, October 23rd. Seven research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $17.21.

About Pacific Gas & Electric

Pacific Gas and Electric Company (PG&E) is a regulated utility that provides electricity and natural gas to homes and businesses in Northern and Central California. Its services include generating, purchasing, transmitting and distributing electricity, as well as delivering natural gas through its pipeline network.

The utility is a subsidiary of PG&E Corporation, whose common stock trades on the New York Stock Exchange under the symbol PCG. The company traces its roots to California's early gas and electric utilities and was incorporated in 1905.

PG&E's service area includes communities in the San Francisco Bay Area, the Central Valley and other parts of Northern and Central California.

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