NEW YORK (TheStreet) -- Shares of FirstEnergy Corp. (FE) are higher by 5.42% to $33.19 on Tuesday afternoon as the utility market receives a boost from a positive pricing outlook, which is tied to a recent auction to produce power supplies in Washington, DC and 13 other states, Investors.com reported.
PJM Interconnection, a company that runs the largest power grid in the U.S., held its annual auction on Friday and the grid secured 167,004 megawatts of power supplies.
Based on the results of the annual auction payments to electricity producers will increase to $120 per megawatt per day from $59.37 for the previous year.
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TheStreet Ratings team rates FIRSTENERGY CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate FIRSTENERGY CORP (FE) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth and increase in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and poor profit margins."