FirstEnergy Corp.

(New York Stock Exchange)
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Somewhat Bullish +35

Bank of New York Mellon Corp Lowers Stock Position in FirstEnergy ...

AI-generated analysis

📉 Bank of New York Mellon Corp reduced its FirstEnergy position by 14.8% in Q1, selling 645,115 shares while retaining a stake worth $188.7 million.

📈 Several smaller institutional investors increased stakes, with Pinnacle Bancorp boosting its holding by 44.4% to 754 shares.

💰 FirstEnergy reported Q1 revenue of $4.20 billion, beating the consensus estimate of $3.80 billion by over $400 million.

📊 The utility company posted earnings per share of $0.72, matching analyst expectations exactly.

🚀 Revenue grew 11.6% year-over-year, reflecting strong operational performance in the regulated utility sector.

🎯 Morgan Stanley reaffirmed an 'overweight' rating with a $52.00 price target on FirstEnergy shares.

⚖️ TD Cowen upgraded FirstEnergy from 'hold' to 'buy' but lowered its price objective from $56.00 to $53.00.

📉 The stock trades at a PE ratio of 26.38 with a market capitalization of $28.07 billion.

🏗️ FirstEnergy operates primarily within the PJM regional transmission organization serving five states.

🔮 Analysts expect FY 2026 earnings per share to reach approximately $2.74, slightly above company guidance.

Bullish Signals
  • FirstEnergy significantly beat revenue expectations with actual revenue of $4.20 billion versus a consensus estimate of $3.80 billion.
  • The company reported an 11.6% year-over-year increase in revenue, demonstrating strong top-line growth.
  • Morgan Stanley maintains an 'overweight' rating and set a price target of $52.00 on the stock.
  • Barclays raised its price target to $53.00 and assigned an 'overweight' rating to FirstEnergy.
  • FirstEnergy achieved a return on equity of 10.66% and a net margin of 6.86% in the latest quarter.
  • The consensus analyst rating is 'Moderate Buy' with a collective price target of $52.75.
Risk Factors
  • Bank of New York Mellon Corp, a major institutional holder, reduced its position by 14.8% in the first quarter.
  • TD Cowen downgraded FirstEnergy from 'buy' to 'hold' and lowered its price objective from $56.00 to $53.00.
  • The stock has a beta of 0.47, indicating lower volatility relative to the broader market which may limit upside potential in bull markets.
  • FirstEnergy's current ratio is 0.52 and quick ratio is 0.42, suggesting limited short-term liquidity relative to obligations.
Full Analysis
Bank of New York Mellon Corp reduced its stake in FirstEnergy Corporation (NYSE:FE) by 14.8% during the first quarter, selling 645,115 shares to hold a remaining position of 3,725,176 shares valued at $188.7 million. While BNY Mellon exited, several other institutional investors increased their holdings, including Parallel Advisors LLC, Simplicity Wealth LLC, and Dorsey & Whitney Trust CO LLC, though these additions represent relatively small stakes compared to the major bank's reduction. Analyst sentiment remains mixed but generally positive regarding FirstEnergy's valuation. Morgan Stanley reaffirmed an 'overweight' rating with a $52.00 price target, while Jefferies Financial Group raised its objective to $52.00. Conversely, TD Cowen downgraded the stock from 'buy' to 'hold' and lowered its target to $53.00, and Barclays increased its target to $53.00 with an 'overweight' rating. The consensus rating is currently a 'Moderate Buy' with a price target of $52.75. Financially, FirstEnergy reported strong quarterly performance in the last earnings release, beating revenue estimates significantly. The utility provider posted $4.20 billion in revenue, surpassing the consensus estimate of $3.80 billion, and reported earnings per share of $0.72 which matched analyst expectations. Revenue grew 11.6% year-over-year, driven by a return on equity of 10.66% and a net margin of 6.86%. The company has set full-year 2026 guidance between $2.62 and $2.82 per share. FirstEnergy operates as a U.S.-based electric utility holding company headquartered in Akron, Ohio, serving residential, commercial, and industrial customers across the Midwest and Mid-Atlantic regions including Ohio, Pennsylvania, New Jersey, Maryland, and West Virginia. The company focuses on delivering electricity through regulated transmission and distribution networks within the PJM regional transmission organization, managing grid infrastructure maintenance, storm response, and offering energy efficiency programs.