FirstEnergy is selling a nearly 20% stake in its transmission business to Brookfield Asset Management for $2.4 billion.
Under the terms of the agreement, Brookfield's infrastructure group would purchase a 19.9% stake in FirstEnergy Transmission LLC that includes subsidiaries American Transmission Systems, Mid-Atlantic Interstate Transmission and Trans-Allegheny Interstate Line Co. The deal implies an electric utility valuation of 40 times trailing earnings per share for the past 12 months.
The electric utility company also announced a deal to issue $1 billion in common stock to Blackstone Infrastructure Partners at $39.08 a share, for smart grid and clean energy transition initiatives.
The deals raise $3.4 billion in equity proceeds, which FirstEnergy aims to use to bolster its financial position, capitalize on incremental investment opportunities and address all equity plans, according to the company ‘s statement.
FE saw its Momentum Indicator move below the 0 level on May 16, 2023. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 79 similar instances where the indicator turned negative. In of the 79 cases, the stock moved further down in the following days. The odds of a decline are at .
FE moved below its 50-day moving average on May 11, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for FE crossed bearishly below the 50-day moving average on May 08, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where FE declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for FE entered a downward trend on June 02, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where FE's RSI Oscillator exited the oversold zone, of 25 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 48 cases where FE's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where FE advanced for three days, in of 371 cases, the price rose further within the following month. The odds of a continued upward trend are .
FE may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 69, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.106) is normal, around the industry mean (1.723). P/E Ratio (53.191) is within average values for comparable stocks, (42.819). Projected Growth (PEG Ratio) (2.478) is also within normal values, averaging (2.871). Dividend Yield (0.041) settles around the average of (0.051) among similar stocks. P/S Ratio (1.699) is also within normal values, averaging (3.348).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. FE’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a distributor of electricity and provides energy-related services
A.I.dvisor indicates that over the last year, FE has been closely correlated with AEE. These tickers have moved in lockstep 82% of the time. This A.I.-generated data suggests there is a high statistical probability that if FE jumps, then AEE could also see price increases.