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Feb. 18, 2021, 2:07 p.m. EST

FirstEnergy's stock surges to lead S&P 500 gainers after Icahn discloses plan to buy a stake

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By Tomi Kilgore

Shares of FirstEnergy Corp. /zigman2/quotes/201870541/composite FE -0.91% shot up 9.5% toward a seven-month high in afternoon trading Thursday, enough to space the S&P 500's /zigman2/quotes/210599714/realtime SPX +0.07% gainers, as investors seemed to focus more on billionaire activist investor Carl Icahn's plan to buy a stake in the electric utility than on the company's profit and revenue miss. The company disclosed in its 10-K filing with the Securities and Exchange Commission that it was notified that Icahn "has a present good faith intention to acquire voting securities" of the company, in an amount somewhere between $184 million and $919.9 million. The company said it didn't know if Icahn had already acquired shares or derivatives to buy shares, and doesn't know Icahn's intentions. Separately, the company reported fourth-quarter net earnings of $242 million, or 45 cents a share, after a loss of $111 million, or 20 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted EPS of 32 cents was below the consensus analyst estimate of 47 cents, according to FactSet. Revenue fell 7.4% to $2.5 billion, below the FactSet consensus of $2.9 billion. FirstEnergy's stock has tumbled 33.1% over the past 12 months, while the SPDR Utilities Select Sector ETF /zigman2/quotes/206645117/composite XLU +0.07% has lost 11.8% and the S&P 500 has gained 16.2%.

/zigman2/quotes/201870541/composite
US : U.S.: NYSE
$ 36.46
-0.34 -0.91%
Volume: 694,577
April 22, 2021 12:31p
P/E Ratio
19.74
Dividend Yield
4.28%
Market Cap
$20.01 billion
Rev. per Employee
$887,847
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/zigman2/quotes/210599714/realtime
US : S&P US
4,176.19
+2.77 +0.07%
Volume: 986.24M
April 22, 2021 12:31p
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/zigman2/quotes/206645117/composite
US : U.S.: NYSE Arca
$ 67.20
+0.05 +0.07%
Volume: 3.20M
April 22, 2021 12:31p
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