Shares of California’s biggest utility owner, PG&E Corp, jumped more than 10% on Tuesday after the company announced that it has secured bankruptcy financing worth $5.5 billion in the form of debtor-in-possession (DIP) financing from four banks.
According to the company, four investment banks JPMorgan Chase & Co (JPM), Bank of America Merrill Lynch (BAC), Barclays Plc (BARC) and Citigroup Inc (C) are expected to help with the financing, which is expected to comprise of a $3.5 billion revolving credit facility, a $1.5 billion term loan and a $500 million delayed-draw term loan.
The U.S. power producer, which provides electricity and natural gas to nearly 16 million customers in northern and central California, was recently hit by extensive litigation, government investigations and liabilities that could potentially exceed $30 billion because of wildfires in the state.
As the company prepares to file for Chapter-11 bankruptcy protection, its bankruptcy plan has reverberated across the power industry, and has been a drag on total return in the Utilities sector. PG&E expects to file for bankruptcy on or about January 29, 2019.
The 10-day moving average for PCG crossed bullishly above the 50-day moving average on April 04, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on April 19, 2024. You may want to consider a long position or call options on PCG as a result. In of 99 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for PCG just turned positive on April 19, 2024. Looking at past instances where PCG's MACD turned positive, the stock continued to rise in of 50 cases over the following month. The odds of a continued upward trend are .
PCG moved above its 50-day moving average on April 18, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where PCG advanced for three days, in of 289 cases, the price rose further within the following month. The odds of a continued upward trend are .
PCG may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PCG 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 PCG entered a downward trend on March 27, 2024. 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 Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. PCG’s price grows at a higher 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 slightly better than average sales and a considerably profitable 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 Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average 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 Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued 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 (1.727) is normal, around the industry mean (1.706). P/E Ratio (15.771) is within average values for comparable stocks, (23.333). PCG's Projected Growth (PEG Ratio) (1.119) is slightly lower than the industry average of (2.620). Dividend Yield (0.001) settles around the average of (0.074) among similar stocks. P/S Ratio (1.449) is also within normal values, averaging (3.505).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. PCG’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 72, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of electric energy services and transports natural gas
Industry ElectricUtilities