What’s Ahead for FirstEnergy Corp. After Today’s Bearish Options Activity?

 What's Ahead for FirstEnergy Corp. After Today's Bearish Options Activity?

In today’s session FirstEnergy Corp. (FE) recorded an unusually high (3,032) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the November, 2016 put, expecting serious FE decrease. With 3,032 contracts traded and 5164 open interest for the Nov, 16 contract, it seems this is a quite bearish bet. The option with symbol: FE161118P00032000 closed last at: $0.4 or 38.5% down. About 1,111 shares traded hands. FirstEnergy Corp. (NYSE:FE) has declined 4.28% since April 5, 2016 and is downtrending. It has underperformed by 6.23% the S&P500.

FirstEnergy Corp. (NYSE:FE) Ratings Coverage

Out of 15 analysts covering FirstEnergy (NYSE:FE), 5 rate it a “Buy”, 4 “Sell”, while 6 “Hold”. This means 33% are positive. $41.5 is the highest target while $1 is the lowest. The $35.10 average target is 3.78% above today’s ($33.82) stock price. FirstEnergy has been the topic of 37 analyst reports since July 21, 2015 according to StockzIntelligence Inc. The stock of FirstEnergy Corp. (NYSE:FE) earned “Sell” rating by Tudor Pickering on Wednesday, October 19. The stock has “Neutral” rating given by UBS on Tuesday, October 13. The stock of FirstEnergy Corp. (NYSE:FE) earned “Outperform” rating by RBC Capital Markets on Tuesday, August 4. The firm has “Buy” rating given on Wednesday, September 2 by TheStreet. The company was downgraded on Thursday, April 28 by Barclays Capital. The stock of FirstEnergy Corp. (NYSE:FE) earned “Buy” rating by Evercore on Tuesday, October 18. The company was upgraded on Tuesday, October 25 by Deutsche Bank. The firm earned “Overweight” rating on Friday, September 11 by JP Morgan. The firm has “Equal-Weight” rating given on Monday, May 9 by Barclays Capital. UBS maintained it with “Neutral” rating and $33 target price in Tuesday, October 18 report.

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 Q2 2016. 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.
Los Angeles Cap Mgmt Equity Rech has invested 0.27% of its portfolio in FirstEnergy Corp. (NYSE:FE). Metropolitan Life Ins Ny has invested 0.06% of its portfolio in FirstEnergy Corp. (NYSE:FE). The Illinois-based Northern Trust has invested 0.06% in FirstEnergy Corp. (NYSE:FE). Axa has invested 0% of its portfolio in FirstEnergy Corp. (NYSE:FE). Farmers & Merchants Invs holds 0% or 138 shares in its portfolio. Ridgeworth Capital Mgmt Ltd Liability Com holds 0% of its portfolio in FirstEnergy Corp. (NYSE:FE) for 78 shares. Moreover, First Allied Advisory Service has 0.01% invested in FirstEnergy Corp. (NYSE:FE) for 6,429 shares. Nine Chapters Mngmt Limited Liability Corporation accumulated 6,200 shares or 4.52% of the stock. Assetmark reported 4,048 shares or 0% of all its holdings. Cibc Asset accumulated 0.01% or 50,736 shares. The Montana-based Da Davidson has invested 0.01% in FirstEnergy Corp. (NYSE:FE). Peak6 Investments Limited Partnership holds 0.04% or 159,685 shares in its portfolio. Private Asset Mgmt, a California-based fund reported 6,186 shares. Deutsche Natl Bank Ag has invested 0.04% of its portfolio in FirstEnergy Corp. (NYSE:FE). Moreover, Qs Ltd Liability Corp has 0.01% invested in FirstEnergy Corp. (NYSE:FE) for 25,505 shares.

FirstEnergy Corp. is a holding company. The company has a market cap of $13.99 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: Moodys.com which released: “Moody’s affirms FirstEnergy Corp.’s Baa3 Issuer rating; changed rating outlook …” on November 04, 2016, also Prnewswire.com with their article: “FirstEnergy Continues Tree Trimming Program in Toledo Edison Service Area” published on November 03, 2016, Crainscleveland.com published: “FirstEnergy Corp. gets a bailout, but not the one it was hoping for” on October 12, 2016. More interesting news about FirstEnergy Corp. (NYSE:FE) were released by: Reuters.com and their article: “BRIEF-Firstenergy Corp sees FY 2017 basic EPS in range of $2.47-$2.77” published on November 04, 2016 as well as Prnewswire.com‘s news article titled: “FirstEnergy to Webcast Third Quarter Earnings Teleconference” with publication date: October 27, 2016.

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