Is FirstEnergy Corp. (FE) Trading at a Discount?

Investment management company First Pacific Advisors recently released its “The FPA Crescent Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund gained 7.52% and 20.27% in the trailing twelve months. In 2023, Crescent experienced a decrease in its net risk exposure from 74.6% to 70.1%. This decline was mainly attributed to securities that had less favorable risk/reward profiles. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

The FPA Crescent Fund featured stocks such as FirstEnergy Corp. (NYSE:FE) in the fourth quarter 2023 investor letter. Headquartered in Akron, Ohio, FirstEnergy Corp. (NYSE:FE) generates, transmits, and distributes electricity. On February 2, 2024, FirstEnergy Corp. (NYSE:FE) stock closed at $36.79 per share. One-month return of FirstEnergy Corp. (NYSE:FE) was -4.14%, and its shares lost 7.35% of their value over the last 52 weeks. FirstEnergy Corp. (NYSE:FE) has a market capitalization of $21.111 billion.

The FPA Crescent Fund stated the following regarding FirstEnergy Corp. (NYSE:FE) in its fourth quarter 2023 investor letter:

“FirstEnergy Corp. (NYSE:FE) is an Ohio-based public utility holding company that we purchased in 2020 in the face of a bribery scandal. The company paid fines, and senior management changed as a result; since then, the company has performed well operationally, which has translated into good stock performance. While increasing interest rates in 2023 caused its stock to drop from its highs (along with the Interest Rate Caps), it continues to trade at a substantial discount to its peers and offers a 4.5% dividend yield.”

A fleet of solar power plants under the dazzling sun, shooting off a burst of light.

FirstEnergy Corp. (NYSE:FE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held FirstEnergy Corp. (NYSE:FE) at the end of third quarter which was 25 in the previous quarter.

We discussed FirstEnergy Corp. (NYSE:FE) in another article and shared the list of renewable energy companies in the United States by revenue. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.