Fintel reports that on September 21, 2023, Morgan Stanley maintained coverage of Firstenergy (NYSE:FE) with a Overweight recommendation.
Analyst Price Forecast Suggests 16.53% Upside
As of August 31, 2023, the average one-year price target for Firstenergy is 42.60. The forecasts range from a low of 36.36 to a high of $47.25. The average price target represents an increase of 16.53% from its latest reported closing price of 36.56.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Firstenergy is 12,298MM, a decrease of 3.15%. The projected annual non-GAAP EPS is 2.58.
Firstenergy Declares $0.39 Dividend
On July 26, 2023 the company declared a regular quarterly dividend of $0.39 per share ($1.56 annualized). Shareholders of record as of August 7, 2023 received the payment on September 1, 2023. Previously, the company paid $0.39 per share.
At the current share price of $36.56 / share, the stock's dividend yield is 4.27%.
Looking back five years and taking a sample every week, the average dividend yield has been 4.00%, the lowest has been 3.03%, and the highest has been 5.87%. The standard deviation of yields is 0.57 (n=236).
The current dividend yield is 0.47 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 1.95. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company has not increased its dividend in the last three years.
What is the Fund Sentiment?
There are 1345 funds or institutions reporting positions in Firstenergy. This is a decrease of 107 owner(s) or 7.37% in the last quarter. Average portfolio weight of all funds dedicated to FE is 0.24%, a decrease of 7.91%. Total shares owned by institutions increased in the last three months by 1.20% to 551,748K shares. 
The put/call ratio of FE is 1.28, indicating a bearish outlook.
What are Other Shareholders Doing?
Capital World Investors holds 43,451K shares representing 7.58% ownership of the company. In it's prior filing, the firm reported owning 29,967K shares, representing an increase of 31.03%. The firm increased its portfolio allocation in FE by 30.95% over the last quarter.
Blackstone Group holds 28,832K shares representing 5.03% ownership of the company. No change in the last quarter.
Price T Rowe Associates holds 20,250K shares representing 3.53% ownership of the company. In it's prior filing, the firm reported owning 19,245K shares, representing an increase of 4.96%. The firm increased its portfolio allocation in FE by 114.46% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 16,959K shares representing 2.96% ownership of the company. In it's prior filing, the firm reported owning 16,816K shares, representing an increase of 0.84%. The firm decreased its portfolio allocation in FE by 9.69% over the last quarter.
ANCFX - AMERICAN FUNDS FUNDAMENTAL INVESTORS holds 15,364K shares representing 2.68% ownership of the company. In it's prior filing, the firm reported owning 12,650K shares, representing an increase of 17.66%. The firm increased its portfolio allocation in FE by 11.06% over the last quarter.
Firstenergy Background Information
(This description is provided by the company.)
FirstEnergy Corp. is dedicated to safety, reliability and operational excellence. Its ten electric distribution companies form one of the nation's largest investor-owned electric systems, serving customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. The company's transmission subsidiaries operate approximately 24,500 miles of transmission lines that connect the Midwest and Mid-Atlantic regions.
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