Pinnacle Associates Ltd., a renowned investment management firm, has made a noteworthy entry into the shares of FirstEnergy Corp. During the first quarter of this year, Pinnacle Associates purchased an impressive 5,564 shares of FirstEnergy’s stock. Valued at approximately $223,000, this strategic acquisition demonstrates the firm’s growing interest in the utilities provider.
FirstEnergy Corp., listed on the New York Stock Exchange under the symbol FE, has been attracting attention from seasoned investors due to its strong market performance and consistent dividend payouts. As reported in its most recent Form 13F filing with the Securities and Exchange Commission (SEC), Pinnacle Associates Ltd.’s decision to invest in FirstEnergy aligns with their commitment to identifying profitable investment opportunities.
The significance of this move by Pinnacle Associates lies not only in their substantial share purchase but also in their careful assessment of FirstEnergy’s potential for growth and profitability. The utilities sector has long been considered a reliable source for stable returns, particularly through dividends. By acquiring such a significant number of shares in a company known for its consistent dividend payments, Pinnacle Associates is positioning itself strategically within this industry.
Furthermore, FirstEnergy recently announced its quarterly dividend payment scheduled to be disbursed on Friday, September 1st. Shareholders who are recorded as owners by Monday, August 7th will receive a commendable dividend of $0.39 per share. It is important to note that investors must have acquired shares prior to Friday, August 4th – when the ex-dividend date occurred – to be eligible for this lucrative payout.
These latest developments serve as confirmation that FirstEnergy continues to prioritize rewarding its loyal shareholders with attractive dividends while positioning itself competitively within the market. An annualized payout ratio of 197.47% underscores the company’s commitment to providing consistent returns on investment.
With an annualized dividend yield of 4.32%, investors can anticipate an impressive rate of return on their investment in FirstEnergy. This is particularly attractive for investors in search of stability and reliable income within an uncertain market environment.
As the investment landscape evolves, it is imperative for investors like Pinnacle Associates to remain vigilant in identifying opportunities that offer both long-term growth prospects and consistent returns. By incorporating FirstEnergy into their portfolio, Pinnacle Associates Ltd. has demonstrated a shrewd strategy for maximizing profitability while diversifying their holdings.
Marked by its intriguing foray into FirstEnergy Corp.’s shares and anticipation of the forthcoming dividend payment, Pinnacle Associates continues to stimulate curiosity among industry insiders. As August progresses, market participants will eagerly analyze the impact of these recent developments on both companies involved as well as the broader utilities sector.
August 8, 2023, stands as a significant date that captured Pinnacle Associates’ confidence in FirstEnergy Corp.’s potential and showcases how keen investors are attuned to new opportunities amidst ever-changing market conditions. Only time will tell what fruitful outcomes await these astute investment decisions and how they will shape the future landscape of the utilities sector.
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FirstEnergy Sees Changes in Stakes by Hedge Funds and Institutional Investors, Analysts Provide Varied Ratings
FirstEnergy (NYSE:FE) has recently seen changes in its stakes by various hedge funds and institutional investors, according to reports. Vanguard Group Inc., for instance, increased its holdings in the company by 7.0% during the first quarter, now owning 68,214,574 shares valued at $3,128,322,000. Similarly, Price T Rowe Associates Inc. MD grew its position in FirstEnergy by 41.9% during the 4th quarter, with ownership of 19,698,278 shares worth $826,146,000. Boston Partners also saw a growth of 31.9% in their position during the same quarter and now owns 11,608,710 shares valued at $486,530,000.
These are only a few examples among several investors who have either added or reduced their stakes in FirstEnergy recently. The inclusion of institutional investors is crucial as it reflects their confidence in the company’s performance and prospects.
Research firms’ analyses on FirstEnergy’s performance have also been significant factors affecting investor sentiment towards the stock. For example, TheStreet downgraded FirstEnergy from a “b” rating to a “c+” rating in its research report on Friday. Conversely Morgan Stanley raised their price objective on FirstEnergy from $45.00 to $46.00 and gave it an “overweight” rating.
StockNews.com initiated coverage on FirstEnergy with a “hold” rating while UBS Group lowered their rating from “buy” to “neutral”. Furthermore, Bank of America increased its price target from $38.00 to $39.00 but gave the stock an “underperform” rating.
Overall analysts’ ratings have varied with one sell rating accompanied by five hold ratings and three buy ratings for the stock according to Bloomberg data. Currently holding an average rating of “Hold”, FirstEnergy has an average price target of $42.38.
On Tuesday, shares of FirstEnergy opened at $36.12. Looking at the stock’s performance, it has a fifty-day moving average price of $38.79 and a two-hundred day moving average price of $39.48.
FirstEnergy Corp., with a debt-to-equity ratio of 2.07, quick ratio of 0.49, and current ratio of 0.60, has witnessed a market capitalization of $20.71 billion and a price-to-earnings ratio of 45.72.
In terms of recent financial results, FirstEnergy reported earnings per share (EPS) of $0.47 for the most recent quarter, surpassing the consensus estimate of $0.46 by $0.01. The firm generated revenue of $3.01 billion during that period in comparison to the estimated figure of $2.89 billion.
FirstEnergy displayed a return on equity of 12.41% and a net margin of 3.55%. Analysts are anticipating an EPS of 2.53 for the current fiscal year.
These developments indicate an array of significant events surrounding FirstEnergy and underline its status as an investment worth monitoring in the coming months.
