Stock Traders Buy High Volume of Call Options on FirstEnergy (NYSE:FE)

FirstEnergy Corporation (NYSE:FE) was the target of some unusual options trading activity on Tuesday. Stock traders acquired 9,243 call options on the stock. This represents an increase of approximately 284% compared to the typical volume of 2,407 call options.

FirstEnergy Trading Up 0.7%

Shares of FE traded up $0.33 on Tuesday, reaching $46.89. 1,488,248 shares of the company’s stock were exchanged, compared to its average volume of 4,709,833. The business has a 50 day moving average price of $45.62 and a two-hundred day moving average price of $43.15. FirstEnergy has a 12 month low of $37.58 and a 12 month high of $48.20. The stock has a market capitalization of $27.09 billion, a P/E ratio of 20.46, a price-to-earnings-growth ratio of 2.80 and a beta of 0.53. The company has a current ratio of 0.75, a quick ratio of 0.51 and a debt-to-equity ratio of 1.80.

FirstEnergy (NYSE:FE) last released its earnings results on Wednesday, October 22nd. The utilities provider reported $0.83 EPS for the quarter, topping analysts’ consensus estimates of $0.76 by $0.07. The firm had revenue of $4.15 billion during the quarter, compared to analyst estimates of $3.94 billion. FirstEnergy had a net margin of 9.19% and a return on equity of 11.15%. The business’s quarterly revenue was up 10.8% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.85 EPS. FirstEnergy has set its FY 2025 guidance at 2.500-2.560 EPS. Research analysts anticipate that FirstEnergy will post 2.66 earnings per share for the current year.

FirstEnergy Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, December 1st. Investors of record on Friday, November 7th will be paid a dividend of $0.445 per share. This represents a $1.78 annualized dividend and a yield of 3.8%. The ex-dividend date of this dividend is Friday, November 7th. FirstEnergy’s dividend payout ratio (DPR) is presently 77.73%.

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on FE. Citigroup began coverage on FirstEnergy in a research report on Tuesday, October 7th. They set a “buy” rating and a $53.00 price objective on the stock. KeyCorp lowered shares of FirstEnergy from an “overweight” rating to a “sector weight” rating in a report on Tuesday, October 14th. Mizuho raised their price objective on shares of FirstEnergy from $45.00 to $50.00 and gave the stock a “neutral” rating in a report on Friday, October 24th. Weiss Ratings reiterated a “buy (b)” rating on shares of FirstEnergy in a research report on Wednesday, October 8th. Finally, Jefferies Financial Group upped their target price on shares of FirstEnergy from $45.00 to $47.00 and gave the company a “hold” rating in a research note on Tuesday, October 21st. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $49.08.

Institutional Investors Weigh In On FirstEnergy

Hedge funds have recently modified their holdings of the business. NewEdge Advisors LLC raised its position in FirstEnergy by 10.2% in the 3rd quarter. NewEdge Advisors LLC now owns 36,565 shares of the utilities provider’s stock valued at $1,675,000 after buying an additional 3,373 shares during the last quarter. Caxton Associates LLP bought a new stake in shares of FirstEnergy in the third quarter worth $5,007,000. Woodline Partners LP boosted its holdings in FirstEnergy by 23.6% during the third quarter. Woodline Partners LP now owns 68,683 shares of the utilities provider’s stock worth $3,147,000 after purchasing an additional 13,115 shares during the last quarter. Alyeska Investment Group L.P. bought a new position in FirstEnergy in the third quarter valued at $9,523,000. Finally, United Capital Financial Advisors LLC grew its position in FirstEnergy by 6.7% in the third quarter. United Capital Financial Advisors LLC now owns 13,039 shares of the utilities provider’s stock valued at $597,000 after purchasing an additional 819 shares in the last quarter. Institutional investors and hedge funds own 89.41% of the company’s stock.

About FirstEnergy

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.