Exelon will spend $6.83 billion, or $27.25 a share in cash, on Pepco to surpass Duke Energy (DUK) as the largest power distributor in the country.
Despite this news, Exelon fell 3.15%, or $1.14, to $35.04 at the close of trading on Wednesday. More than 22.3 million shares changed hands, which easily surpassed the average volume of 7,144,470.
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Separately, TheStreet Ratings team rates EXELON CORP as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate EXELON CORP (EXC) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, notable return on equity and compelling growth in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows: