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Jan 22, 2019
PG&E (PCG, $8.07) Shares Surge after Company Secures Bankruptcy Financing

PG&E (PCG, $8.07) Shares Surge after Company Secures Bankruptcy Financing

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.

Related Ticker: PCG

PCG in upward trend: price may jump up because it broke its lower Bollinger Band on August 28, 2026

PCG may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 20 of 30 cases where PCG's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 67%.

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where PCG's RSI Indicator exited the oversold zone, 16 of 27 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 59%.

The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 31 of 53 cases where PCG'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 58%.

The Moving Average Convergence Divergence (MACD) for PCG just turned positive on September 30, 2026. Looking at past instances where PCG's MACD turned positive, the stock continued to rise in 26 of 47 cases over the following month. The odds of a continued upward trend are 55%.

Following a +1.48% 3-day Advance, the price is estimated to grow further. Considering data from situations where PCG advanced for three days, in 192 of 318 cases, the price rose further within the following month. The odds of a continued upward trend are 60%.

Bearish Trend Analysis

The Momentum Indicator moved below the 0 level on September 18, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on PCG as a result. In 50 of 94 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 53%.

PCG moved below its 50-day moving average on August 28, 2026 date and that indicates a change from an upward trend to a downward trend.

The 10-day moving average for PCG crossed bearishly below the 50-day moving average on September 01, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 10 of 19 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 53%.

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 50 of 62 cases within the following month. The odds of a continued downward trend are 55%.

The Aroon Indicator for PCG entered a downward trend on October 05, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

Fundamental Analysis (Ratings)

The Tickeron Valuation Rating of 19 (best 1 - 100 worst) indicates that the company is slightly undervalued 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: PCG's P/B Ratio (1.110) is slightly lower than the industry average of (1.669). PCG has a moderately low P/E Ratio (8.597) as compared to the industry average of (16.662). PCG's Projected Growth (PEG Ratio) (0.499) is slightly lower than the industry average of (1.923). PCG has a moderately low Dividend Yield (0.015) as compared to the industry average of (0.038). P/S Ratio (1.159) is also within normal values, averaging (85.686).

The Tickeron Price Growth Rating for this company is 64 (best 1 - 100 worst), indicating fairly steady price growth. PCG’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 70 (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 Tickeron Profit vs. Risk Rating rating for this company is 78 (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 58, placing this stock worse than average.

The Tickeron PE Growth Rating for this company is 84 (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 Seasonality Score of 95 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.

Notable companies

The most notable companies in this group are Nextera Energy Inc (NYSE:NEE), Southern Company (The) (NYSE:SO), Dominion Energy (NYSE:D), PG&E Corp (NYSE:PCG).

Industry description

Electric utilities companies generate, transmit and distribute electricity to businesses/offices and residences. Companies may be owned by the government or investors or public shareholders, or a combination thereof. The industry also includes firms that buy and sell electricity. Companies in this industry typically require significant investments in infrastructure. Many firms in this industry pay substantial and regular dividends to shareholders. However, changes in interest rates (and their impact on debt burdens), natural disasters and changing commodity prices could be factors affecting energy utilities’ profit margins. NextEra Energy, Inc., Duke Energy Corporation, Dominion Energy Inc. and Southern Company are among U.S. electric utilities companies with the largest market capitalizations.

Market Cap

The average market capitalization across the Electric Utilities Industry is 28.11B. The market cap for tickers in the group ranges from 300 to 157.47B. NEE holds the highest valuation in this group at 157.47B. The lowest valued company is SLTZ at 300.

High and low price notable news

The average weekly price growth across all stocks in the Electric Utilities Industry was 2%. For the same Industry, the average monthly price growth was -6%, and the average quarterly price growth was -13%. CIG experienced the highest price growth at 17%, while IMSR experienced the biggest fall at -9%.

Volume

The average weekly volume growth across all stocks in the Electric Utilities Industry was 8%. For the same stocks of the Industry, the average monthly volume growth was 12% and the average quarterly volume growth was 24%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 38
P/E Growth Rating: 56
Price Growth Rating: 61
SMR Rating: 69
Profit Risk Rating: 57
Seasonality Score: 43 (-100 ... +100)
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General Information

a provider of electric energy services and transports natural gas

Industry ElectricUtilities

Industry
Electric Utilities
Address
300 Lakeside Drive
Phone
+1 415 973-1000
Employees
29010
Web
https://www.pgecorp.com
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