FirstEnergy (NYSE:FE) Reaches New 1-Year Low - Should You Sell?

Key Points

• FirstEnergy shares hit a new 52-week low, trading as low as $42.67, below the 50-day and 200-day moving averages of $46.76 and $47.62.
• Despite the decline, analysts maintain a generally positive outlook: seven rate the stock a Buy and six a Hold, resulting in a “Moderate Buy” consensus and a $52.58 average price target.
• FirstEnergy reported quarterly EPS in line with estimates at $0.50 and revenue above expectations at $3.68 billion. The company pays a $1.86 annualized dividend, yielding about 4.3%, though its payout ratio is high at 98.94%.

FirstEnergy Corporation (NYSE:FE - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Tuesday. The stock traded as low as $42.67 and last traded at $42.9980, with a volume of 3447871 shares changing hands. The stock had previously closed at $43.30.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on the company. Weiss Ratings reissued a "buy (b-)" rating on shares of FirstEnergy in a report on Monday, September 14th. UBS Group increased their target price on FirstEnergy from $50.00 to $51.00 and gave the company a "neutral" rating in a research note on Thursday, June 11th. Morgan Stanley reduced their price target on shares of FirstEnergy from $52.00 to $49.00 and set an "overweight" rating on the stock in a research report on Friday, September 18th. Wall Street Zen upgraded FirstEnergy from a "sell" rating to a "hold" rating in a report on Saturday, September 19th. Finally, Barclays lowered their target price on FirstEnergy from $55.00 to $54.00 and set an "overweight" rating for the company in a report on Friday, July 31st. Seven research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $52.58.

FirstEnergy Price Performance

The stock has a market capitalization of $24.88 billion, a price-to-earnings ratio of 22.87, a P/E/G ratio of 2.50 and a beta of 0.45. The company's 50-day simple moving average is $46.76 and its 200-day simple moving average is $47.62. The company has a debt-to-equity ratio of 1.88, a current ratio of 0.54 and a quick ratio of 0.45.

FirstEnergy (NYSE:FE - Get Free Report) last released its quarterly earnings results on Tuesday, July 28th. The utilities provider reported $0.50 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.50. The business had revenue of $3.68 billion during the quarter, compared to the consensus estimate of $3.51 billion. FirstEnergy had a return on equity of 10.51% and a net margin of 6.86%.During the same period in the previous year, the company posted $0.52 EPS. Research analysts forecast that FirstEnergy Corporation will post 2.74 earnings per share for the current fiscal year.

FirstEnergy Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 1st. Investors of record on Friday, August 7th were paid a $0.4650 dividend. This represents a $1.86 annualized dividend and a dividend yield of 4.3%. The ex-dividend date was Friday, August 7th. FirstEnergy's payout ratio is 98.94%.

Institutional Investors Weigh In On FirstEnergy

A number of large investors have recently added to or reduced their stakes in the stock. Axiom Investment Management LLC acquired a new stake in shares of FirstEnergy during the 1st quarter worth approximately $26,000. Western Wealth Management LLC bought a new stake in FirstEnergy during the first quarter worth $37,000. Highland Investment Advisors LLC acquired a new stake in shares of FirstEnergy in the 2nd quarter valued at $35,000. Pinnacle Bancorp Inc. boosted its holdings in shares of FirstEnergy by 44.4% in the 1st quarter. Pinnacle Bancorp Inc. now owns 754 shares of the utilities provider's stock valued at $38,000 after purchasing an additional 232 shares in the last quarter. Finally, Ascentis Independent Advisors bought a new position in shares of FirstEnergy in the 1st quarter valued at $46,000. Institutional investors and hedge funds own 89.41% of the company's stock.

FirstEnergy Company Profile

FirstEnergy Corp. NYSE: FE is an electric utility holding company focused on the transmission and distribution of electricity. Through its regulated operating companies, the company delivers power to residential, commercial and industrial customers and maintains the local infrastructure needed to support reliable electric service.

FirstEnergy's utility operations include Ohio Edison, The Illuminating Company, Toledo Edison, Met-Ed, Penelec, Penn Power, West Penn Power, Jersey Central Power & Light and Mon Power, among others.

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