FirstEnergy Corp. (FE): Be Fearful When Others Are Greedy

Considering all key technical indicators, a 32% Sell signal has occurred for FirstEnergy Corp. (NYSE:FE). The stock is also flashing a Sell from the Barchart TrendSpotter trading system. Traders hoping to speculate on the FE’s short-term trajectory should know that short terms indicators for the stock averaged 40% Sell with an average daily trading volume over the past 20 days at 5993410 shares. FE stock has overall a 0.25% Sell signal considering medium term indicators and the 50-day average daily volume remained almost 4897010 shares. It’s also worth noting that the stock, whose average daily volume over the 100 days prior to this writing was shares, is 0% Hold on the basis of long term indicators.

The share price is currently staying around the first support level of $36.61. Below this, the next support is placed in the zone of $36.03. Till the time, the FE stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 38.15 on daily chart, which may remain a cause for comfort. If the price breaks below $36.03 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $38.1 mark may result into a pull-back move towards $39 level.

FirstEnergy Corp. (FE) is projected to climb by 8.66 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $44-month high price target. This represents a whopping 18.31 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $40, which represents a return potential of 7.56 percent when compared to the closing price of the stock of $37.19 on Friday, December 21. The lowest price target for the stock is $37 — slightly more than -0.51 percent from FE’s current share price.

Here’s a rundown of insider trading activity for sense of FirstEnergy Corp. (NYSE:FE). The earliest insider trade took place on 09/11/2017. Misheff Donald T gathered a total of 0.1 thousand shares of company at average share price of $32.53. The total for the purchase was set at $3.25 thousand. After this transaction, the Director account balance stood at 0.1 thousand shares. The stock grew 14.33 percent since that insider purchase. On 12/20/2016, Schneider Donald R, President, FE Solutions, sold 6.53 thousand shares at a price per share of $31.36. This removed 204.62 thousand shares from the insider’s fortune and the stock saw a 18.59 percent rally in value since the news became public. This transaction left 24.32 thousand shares in the President, FE Solutions account. On 12/20/2016, SVP, Human Resources Lasky Charles D performed a sale transaction worth $161.47 thousand. This sale at $31.36 each has eliminated 5.15 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 18.59 percent increase since the transaction was reported. The insider now is left with 61.84 thousand shares remaining in the account. Strah Steven E, who performs the Sr VP & President FE Utilities job, bought 0.56 thousand shares for $19.93 thousand. The acquisition occurred on 03/14/2016 was priced at $35.59 per share. The share price soared 4.5 percent since the reporting date. Strah Steven E now left with a stake of 7.88 thousand FE stock worth $292.98 thousand after the insider buying.

FE shares dropped -0.21 points or -0.56 percent on Friday to $37.19 with a heavy trade volume of 8.922 million shares. After opening the session at $37.32, the shares went as high as $38.425 and as low as $36.94, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $19.2 billion and now has 515.63 million shares outstanding. FirstEnergy Corp. (FE) stock has lost -2 percent of market value in 21 trading days.

Analysts at BofA/Merrill lifted target price for shares of FirstEnergy Corp. (NYSE:FE) but repeated their Buy recommendation for the stock in their opinion released on October 29. The price target has been raised from $39 to $41. Analysts at Wells Fargo issued an upgrade from Market Perform to Outperform for the stock, in a research note that dated back to April 30.

FE stock has a trailing 3-year beta of 0.23, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$4.65 a share in the trailing twelve months. The stock’s value has surged 21.46 percent year to date (YTD) against a rise of 21.58 percent in 12 month’s time. The company’s shares still trade -6.75 percent away from its 1-year high of $39.88 and 26.78 percent up from 52-week low of $29.33. The average consensus rating on the company is 2.1, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of FirstEnergy Corp. (FE) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry FE operates in has an average P/E of 16.94. Its P/E ratio went as low as 23.28X and as high as 77.06 over the 5-year span. Further, it is sporting a 1.6 on the Price-to-Sales ratio. Compare this with the industry average P/S of 3.09. 73.9 percent is the gross profit margin for FirstEnergy Corp. and operating margin sits at 21.6 percent. Along with this, the net profit margin is 17.4 percent.