Are Penn West Energy (NYSE:FE) Shares Reaching An Inflection Point; RBC Capital Mkts Decides to Downgrades Company


Penn West Energy (NYSE:FE) Receives a Downgrade

The rating for shares of Penn West Energy (NYSE:FE), which happened to be a “Sector Perform”, has been adjusted by RBC Capital Mkts, who now rates the shares as a “Underperform”. This is in addition to a Estimated Target Price of $1 for FE.

From a total of 18 analysts covering FirstEnergy (NYSE:FE) stock, 7 rate it a ”Buy”, 2 a “Sell”, and 13 a ”Hold”. This means that 32% of the ratings are positive. The highest target price is $42 while the lowest target price is $25. The mean of all analyst targets is $35.94 with a -1.07% below today’s ($31.64) stock price. FirstEnergy was the topic of 17 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Guggenheim upgraded shares on December 3 to “Buy” rating. UBS upgraded shares to “Neutral” rating and $33 target share price in a report from an October 13. Barclays Capital maintained FE stock in a recent report from December 2 with “Overweight” rating. JP Morgan initiated the rating on September 11. JP Morgan has a “Overweight” rating and a $38 price target on shares. Finally, RBC Capital Markets maintained the stock with “Sector Perform” rating in a report issued on a November 6.

The stock increased 1.64% or $0.51 during the last trading session, striking $31.64. Approximately shares of stock traded hands. FirstEnergy Corp. (NYSE:FE) has declined 9.47% since May 14, 2015 and is downtrending. It has underperformed by 7.21% the S&P500.

The overall sentiment of institutions has increased to 1.31 in Q2 2015. Its up 0.36, from 0.95 in 2015Q2. The ratio improved, as 47 institutions have sold all the shares of FirstEnergy Corp. that they owned while 129 funds have taken shares off the table. 51 funds have purchased shares for the first time while 180 added to their positions. These institutions now hold 327.50 million shares or 5.27% more than the 311.11 million shares they owned in 2015Q2.

The Fund Vega Energy Gp Llc currently is holding shares equating to 13.19% of its total portfolio in FirstEnergy Corp. representing a total of 728,701 shares. Another fund,Luminus Management Llc, is holding a total of 7.29 million shares equating to 7.05% of their holdings. Additionally, Lesa Sroufe & Co has a 183,676 share stake in FirstEnergy Corp. which represents 4.57% of their total portfolio. The Fund, Csat Investment Advisory L.P., based out of Michigan, has also built up a stake in the stock, which represents a total of 2.3% of their total portfolio. Finally Flippin Bruce & Porter Inc, a fund which is based in the state of Virginia reported a total holdings of 188,390 shares.

FirstEnergy Corp. is a holding company. The company has a market cap of $13.17 billion. The Firm operates through three divisions: Regulated Distribution, Regulated Transmission and Competitive Energy Services . It has 26.93 P/E ratio. The Regulated Distribution segment distributes electricity through its 10 utility operating companies, serving clients within 65,000 square miles of Ohio, Pennsylvania, West Virginia, Maryland, New Jersey and New York.

According to Zacks Investment Research, “FirstEnergy Corp. is a diversified energy services holding company as the result of the merger of Ohio Edison Company and Centerior Energy Corporation. FirstEnergy companies provide electricity and natural gas services and a wide array of energy-related products and services. FirstEnergy’s four electric utility companies, Ohio Edison and its Pennsylvania Power subsidiary, The Illuminating Company and Toledo Edison, serve customers in northern and central Ohio and western Pennsylvania. (Company Press Release)”