Stock Traders Buy Large Volume of Pacific Gas & Electric Call Options (NYSE:PCG)

Key Points

• PCG call-option activity surged: Traders purchased 183,688 call options, 94% above the stock’s average daily call volume, signaling unusually heavy options interest.
• Insiders have been selling shares: Executives and directors sold 166,000 shares worth approximately $2.96 million over the past 90 days, while institutional investors own 78.56% of the company.
• Analyst sentiment remains cautious: PCG traded near its 12-month low at $12.33, and the consensus rating is “Hold,” despite the company exceeding quarterly EPS expectations and maintaining a $0.20 annualized dividend.

Pacific Gas & Electric Co. (NYSE:PCG - Get Free Report) was the target of unusually large options trading on Friday. Stock traders purchased 183,688 call options on the stock. This is an increase of 94% compared to the average daily volume of 94,653 call options.

Insider Activity

In other news, EVP Marlene Santos sold 158,250 shares of the stock in a transaction dated Wednesday, July 22nd. The stock was sold at an average price of $18.00, for a total value of $2,848,500.00. Following the transaction, the executive vice president owned 230,885 shares in the company, valued at approximately $4,155,930. This represents a 40.67% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director William Fugate sold 6,500 shares of the firm's stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $13.76, for a total value of $89,440.00. Following the sale, the director directly owned 73,530 shares in the company, valued at $1,011,772.80. This trade represents a 8.12% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 166,000 shares of company stock valued at $2,960,440. Insiders own 0.22% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in PCG. Gallagher Fiduciary Advisors LLC acquired a new position in Pacific Gas & Electric in the 2nd quarter valued at $300,895,000. Legal & General Group Plc purchased a new position in shares of Pacific Gas & Electric during the 2nd quarter worth $398,915,000. Canada Pension Plan Investment Board acquired a new stake in shares of Pacific Gas & Electric during the second quarter worth $320,820,000. Barrow Hanley Mewhinney & Strauss LLC acquired a new stake in shares of Pacific Gas & Electric during the second quarter worth $314,855,000. Finally, Man Group plc purchased a new stake in shares of Pacific Gas & Electric in the second quarter valued at $188,513,000. 78.56% of the stock is owned by hedge funds and other institutional investors.

Pacific Gas & Electric Stock Performance

NYSE PCG traded up $0.01 during trading hours on Friday, hitting $12.33. 32,324,817 shares of the stock were exchanged, compared to its average volume of 25,901,395. The company has a quick ratio of 1.15, a current ratio of 1.22 and a debt-to-equity ratio of 1.90. The company has a market cap of $33.04 billion, a price-to-earnings ratio of 8.93, a price-to-earnings-growth ratio of 1.03 and a beta of 0.24. Pacific Gas & Electric has a 12-month low of $12.02 and a 12-month high of $19.16. The stock has a 50-day moving average of $16.05 and a 200 day moving average of $16.71.

Pacific Gas & Electric (NYSE:PCG - Get Free Report) last issued its earnings results on Thursday, July 23rd. The utilities provider reported $0.40 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.36 by $0.04. The business had revenue of $5.90 billion during the quarter, compared to the consensus estimate of $6.20 billion. Pacific Gas & Electric had a return on equity of 12.48% and a net margin of 12.25%.The company's revenue for the quarter was up .1% on a year-over-year basis. During the same period in the prior year, the business posted $0.31 EPS. Pacific Gas & Electric has set its FY 2026 guidance at 1.640-1.660 EPS. As a group, equities research analysts forecast that Pacific Gas & Electric will post 1.65 earnings per share for the current year.

Pacific Gas & Electric Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Wednesday, September 30th will be paid a $0.05 dividend. The ex-dividend date is Wednesday, September 30th. This represents a $0.20 annualized dividend and a dividend yield of 1.6%. Pacific Gas & Electric's dividend payout ratio (DPR) is 14.49%.

Analyst Ratings Changes

A number of brokerages recently weighed in on PCG. Wells Fargo & Company cut shares of Pacific Gas & Electric from an "overweight" rating to a "buy" rating in a research report on Monday, August 31st. Bank of America reissued a "neutral" rating and set a $13.00 price target (down from $24.00) on shares of Pacific Gas & Electric in a report on Tuesday, September 1st. UBS Group reaffirmed a "neutral" rating and set a $14.00 price objective (down from $19.00) on shares of Pacific Gas & Electric in a research report on Tuesday. Wall Street Zen lowered Pacific Gas & Electric from a "buy" rating to a "hold" rating in a report on Saturday, July 25th. Finally, Jefferies Financial Group set a $13.00 price target on Pacific Gas & Electric in a research note on Tuesday, September 1st. Three research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $17.55.

About Pacific Gas & Electric

Pacific Gas & Electric Corporation NYSE: PCG is an energy holding company whose principal subsidiary, Pacific Gas and Electric Company, provides regulated electricity and natural gas services. The utility delivers electricity through its transmission and distribution networks and supplies natural gas to residential, commercial, industrial and agricultural customers.

Pacific Gas and Electric Company serves a large portion of Northern and Central California, including the San Francisco Bay Area and the Central Valley.

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