Stock Traders Purchase High Volume of FirstEnergy Put Options (NYSE:FE)

Key Points

• FirstEnergy experienced a substantial increase in options trading, with over 8,031 put options purchased, reflecting a 303% rise from typical volumes.
• Hedge funds have shown increased interest in FirstEnergy, with multiple firms acquiring new positions and an overall ownership of 89.41% by institutional investors.
• The company's quarterly earnings surpassed expectations with an EPS of $0.52, alongside a declared quarterly dividend of $0.445 per share scheduled for December 1st.

FirstEnergy Corporation (NYSE:FE - Get Free Report) was the recipient of unusually large options trading activity on Wednesday. Stock traders purchased 8,031 put options on the stock. This represents an increase of approximately 303% compared to the typical volume of 1,994 put options.

Hedge Funds Weigh In On FirstEnergy

Hedge funds have recently bought and sold shares of the company. State of Wyoming purchased a new position in FirstEnergy during the 2nd quarter worth $25,000. Investment Research & Advisory Group Inc. bought a new stake in shares of FirstEnergy during the 2nd quarter worth $26,000. Oliver Lagore Vanvalin Investment Group bought a new stake in shares of FirstEnergy during the 2nd quarter worth $26,000. N.E.W. Advisory Services LLC bought a new stake in shares of FirstEnergy during the 1st quarter worth $27,000. Finally, Capital Advisors Ltd. LLC raised its stake in shares of FirstEnergy by 186.4% during the 2nd quarter. Capital Advisors Ltd. LLC now owns 676 shares of the utilities provider's stock worth $27,000 after purchasing an additional 440 shares during the period. 89.41% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

FE has been the subject of several research analyst reports. Morgan Stanley lowered their price objective on shares of FirstEnergy from $48.00 to $47.00 and set an "overweight" rating for the company in a research note on Thursday, September 25th. Scotiabank reiterated an "outperform" rating on shares of FirstEnergy in a research note on Wednesday. Weiss Ratings reiterated a "buy (b)" rating on shares of FirstEnergy in a research note on Wednesday. Citigroup initiated coverage on shares of FirstEnergy in a research note on Tuesday. They issued a "buy" rating and a $53.00 price objective for the company. Finally, KeyCorp reiterated an "overweight" rating and issued a $46.00 price objective (down previously from $47.00) on shares of FirstEnergy in a research note on Wednesday, July 16th. Eight investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $46.77.

FirstEnergy Stock Up 0.8%

NYSE FE traded up $0.38 during mid-day trading on Wednesday, hitting $46.79. The company's stock had a trading volume of 3,142,295 shares, compared to its average volume of 4,720,368. The company's 50 day simple moving average is $43.84 and its 200 day simple moving average is $41.95. FirstEnergy has a twelve month low of $37.58 and a twelve month high of $47.35. The company has a current ratio of 0.61, a quick ratio of 0.51 and a debt-to-equity ratio of 1.68. The firm has a market capitalization of $27.01 billion, a price-to-earnings ratio of 20.71, a PEG ratio of 2.85 and a beta of 0.52.

FirstEnergy (NYSE:FE - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The utilities provider reported $0.52 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.50 by $0.02. The firm had revenue of $3.40 billion for the quarter, compared to the consensus estimate of $3.45 billion. FirstEnergy had a net margin of 9.31% and a return on equity of 11.31%. During the same period in the previous year, the firm earned $0.56 EPS. FirstEnergy has set its FY 2025 guidance at 2.400-2.600 EPS. Analysts anticipate that FirstEnergy will post 2.66 earnings per share for the current year.

FirstEnergy Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, December 1st. Shareholders of record on Friday, November 7th will be issued a dividend of $0.445 per share. This represents a $1.78 dividend on an annualized basis and a yield of 3.8%. The ex-dividend date of this dividend is Friday, November 7th. FirstEnergy's payout ratio is currently 78.76%.

FirstEnergy Company Profile

FirstEnergy Corp., through its subsidiaries, generates, transmits, and distributes electricity in the United States. It operates through Regulated Distribution and Regulated Transmission segments. The company owns and operates coal-fired, nuclear, hydroelectric, wind, and solar power generating facilities.

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