What Next for FirstEnergy Corp. Stock After Today’s Bullish Options Activity?

 What Next for FirstEnergy Corp. Stock After Today's Bullish Options Activity?

In today’s session FirstEnergy Corp. (FE) registered an unusually high (5,053) contracts volume of call trades. Someone, most probably a professional was a very active buyer of the November, 2016 call, expecting serious FE increase. With 5,053 contracts traded and 3704 open interest for the Nov, 16 contract, it seems this is a quite bullish bet. The option with symbol: FE161118C00033000 closed last at: $0.75 or 66.7% up. About 1.82M shares traded hands. FirstEnergy Corp. (NYSE:FE) has declined 7.63% since March 16, 2016 and is downtrending. It has underperformed by 13.18% the S&P500.

Analysts await FirstEnergy Corp. (NYSE:FE) to report earnings on November, 3. They expect $0.71 EPS, down 26.80% or $0.26 from last year’s $0.97 per share. FE’s profit will be $310.61M for 11.52 P/E if the $0.71 EPS becomes a reality. After $0.56 actual EPS reported by FirstEnergy Corp. for the previous quarter, Wall Street now forecasts 26.79% EPS growth.

FirstEnergy Corp. (NYSE:FE) Ratings Coverage

Out of 13 analysts covering FirstEnergy (NYSE:FE), 4 rate it a “Buy”, 3 “Sell”, while 6 “Hold”. This means 31% are positive. $41.5 is the highest target while $1 is the lowest. The $35.30 average target is 7.92% above today’s ($32.71) stock price. FirstEnergy has been the topic of 35 analyst reports since July 21, 2015 according to StockzIntelligence Inc. The firm has “Sell” rating by Goldman Sachs given on Tuesday, July 26. Deutsche Bank maintained FirstEnergy Corp. (NYSE:FE) on Tuesday, August 25 with “Hold” rating. As per Tuesday, October 18, the company rating was upgraded by Evercore. The rating was upgraded by RBC Capital Markets on Tuesday, August 4 to “Outperform”. The firm has “Sector Perform” rating by RBC Capital Markets given on Thursday, April 28. On Wednesday, December 2 the stock rating was upgraded by Wolfe Research to “Peer Perform”. Barclays Capital maintained the shares of FE in a report on Wednesday, December 2 with “Overweight” rating. The stock of FirstEnergy Corp. (NYSE:FE) has “Sector Perform” rating given on Thursday, October 13 by RBC Capital Markets. The firm has “Overweight” rating by Barclays Capital given on Thursday, October 13. The rating was downgraded by IBC to “Sector Underperform” on Friday, November 6.

According to Zacks Investment Research, “FirstEnergy Corp. is a diversified energy services holding company as the result of the merger of Ohio Edison Company and Centerior Energy Corporation. FirstEnergy companies provide electricity and natural gas services and a wide array of energy-related products and services. FirstEnergy’s four electric utility companies, Ohio Edison and its Pennsylvania Power subsidiary, The Illuminating Company and Toledo Edison, serve customers in northern and central Ohio and western Pennsylvania. (Company Press Release)”

Insitutional Activity: The institutional sentiment decreased to 1.32 in 2016 Q2. Its down 0.24, from 1.56 in 2016Q1. The ratio worsened, as 46 funds sold all FirstEnergy Corp. shares owned while 138 reduced positions. 52 funds bought stakes while 190 increased positions. They now own 314.64 million shares or 1.02% less from 317.87 million shares in 2016Q1.
Voya Mngmt Ltd Liability Corporation has 325,185 shares for 0.03% of their US portfolio. M&T Bank accumulated 0% or 11,703 shares. Moreover, Laffer Invests has 0% invested in FirstEnergy Corp. (NYSE:FE) for 33,063 shares. Morgan Stanley holds 0.01% of its portfolio in FirstEnergy Corp. (NYSE:FE) for 750,931 shares. Norinchukin Retail Bank The, a Japan-based fund reported 52,977 shares. Victory Cap Mgmt reported 73,185 shares or 0.01% of all its holdings. Ameritas Investment reported 8,396 shares or 0.02% of all its holdings. Los Angeles Cap Management Equity Research Incorporated last reported 0.27% of its portfolio in the stock. Breton Hill Capital Limited holds 5,800 shares or 0.06% of its portfolio. State Street holds 33.06 million shares or 0.12% of its portfolio. Moreover, Foundry Prtnrs Ltd has 0.54% invested in FirstEnergy Corp. (NYSE:FE) for 271,470 shares. Retirement Of Alabama accumulated 0.04% or 216,523 shares. Acadian Asset Management has invested 0.01% of its portfolio in FirstEnergy Corp. (NYSE:FE). Boston Advsr Ltd Liability reported 9,689 shares or 0.01% of all its holdings. Allsquare Wealth Mgmt Ltd Liability Corp has invested 0% of its portfolio in FirstEnergy Corp. (NYSE:FE).

FirstEnergy Corp. is a holding company. The company has a market cap of $14.31 billion. The Firm operates through three divisions: Regulated Distribution, Regulated Transmission and Competitive Energy Services . It currently has negative earnings. The Regulated Distribution segment distributes electricity through its approximately 10 utility operating companies.

FE Company Profile

FirstEnergy Corp., incorporated on September 17, 1996, is a holding company. The Firm operates through three divisions: Regulated Distribution, Regulated Transmission and Competitive Energy Services (CES). The Firm and its subsidiaries are involved in the generation, transmission and distribution of electricity. The Company’s approximately 10 utility operating companies comprise investor-owned electric systems, serving over six million clients in the Midwest and Mid-Atlantic regions. The Company’s generation subsidiaries control approximately 17,000 megawatts of capacity from a diverse mix of non-emitting nuclear, scrubbed coal, natural gas, hydroelectric and other renewables. The Company’s transmission activities include approximately 24,000 miles of lines and approximately two regional transmission operation centers.

More notable recent FirstEnergy Corp. (NYSE:FE) news were published by: Prnewswire.com which released: “FirstEnergy’s Pennsylvania Utilities’ Rate Plan Settlements Will Help Ensure …” on October 17, 2016, also Crainscleveland.com with their article: “FirstEnergy Corp. gets a bailout, but not the one it was hoping for” published on October 12, 2016, Crainscleveland.com published: “FirstEnergy Corp. sends nearly 400 people to Florida to help with power …” on October 07, 2016. More interesting news about FirstEnergy Corp. (NYSE:FE) were released by: Reuters.com and their article: “BRIEF-Firstenergy corp says Firstenergy Ohio Utilities receive “disappoint…” published on October 12, 2016 as well as Prnewswire.com‘s news article titled: “FirstEnergy Corp. Declares Unchanged Common Stock Dividend” with publication date: September 20, 2016.

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