Pacific Gas & Electric (NYSE:PCG) Shares Gap Down Following Analyst Downgrade

Pacific Gas & Electric Co. (NYSE:PCG) shares gapped down before the market opened on Wednesday after Bank of America downgraded the stock from a buy rating to a neutral rating. The stock had previously closed at $14.06, but opened at $13.56. Bank of America now has a $13.00 price target on the stock, down from their previous price target of $24.00. Pacific Gas & Electric shares last traded at $12.6680, with a volume of 18,017,760 shares changing hands.

Several other equities analysts also recently commented on PCG. Weiss Ratings lowered shares of Pacific Gas & Electric from a “hold (c+)” rating to a “hold (c)” rating in a research report on Thursday, June 4th. UBS Group reiterated a “buy” rating on shares of Pacific Gas & Electric in a report on Tuesday, August 18th. Mizuho reiterated a “neutral” rating and issued a $16.00 price target (down from $21.00) on shares of Pacific Gas & Electric in a research note on Monday. Wells Fargo & Company downgraded shares of Pacific Gas & Electric from an “overweight” rating to a “buy” rating in a report on Monday. Finally, Wall Street Zen lowered Pacific Gas & Electric from a “buy” rating to a “hold” rating in a research report on Saturday, July 25th. Five research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $19.73.

Insider Activity at Pacific Gas & Electric

In related news, EVP Marlene Santos sold 158,250 shares of the firm’s stock in a transaction on Wednesday, July 22nd. The shares were sold at an average price of $18.00, for a total value of $2,848,500.00. Following the completion of the transaction, the executive vice president directly owned 230,885 shares of the company’s stock, valued at approximately $4,155,930. This trade represents a 40.67% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.22% of the company’s stock.

Key Headlines Impacting Pacific Gas & Electric

Here are the key news stories impacting Pacific Gas & Electric this week:

• Positive Sentiment: PG&E plans to invest approximately $11.4 billion in California during 2027, supporting grid safety, reliability and capacity to meet rising electricity demand. The company also plans to defer about $2 billion of lower-priority work, which should reduce near-term borrowing needs and limit exposure to higher financing costs. PG&E to invest $11.4 billion in California in 2027 as part of strategic review
• Positive Sentiment: The company launched a strategic review of its business organization and financing. Management said the review is intended to attract affordable capital while keeping customer costs under control, raising the possibility of improved funding terms or a structure that better supports long-term investment. PG&E Launches Strategic Review
• Positive Sentiment: California lawmakers reportedly rejected a wildfire bill that lacked meaningful liability protection for utilities. That outcome removed a provision investors viewed as unfavorable and helped PG&E and other California utilities recover from their sharp selloff. PG&E Stock, Edison International Rise as California Lawmakers Kill Wildfire Bill
• Neutral Sentiment: Wells Fargo reiterated its Equal Weight rating, signaling limited conviction that the current valuation offers significant upside while the strategic review and wildfire policy outlook develop. Wells Fargo Reiterates Equal Weight Rating
• Negative Sentiment: PG&E recently reached a new 52-week low after an approximately 18% one-day plunge. Analysts continue to warn that the failure to establish a liability cap leaves the company exposed to potentially significant costs from future wildfires. Bank of America also downgraded the stock to Neutral and cut its price target to $13. Why PG&E Stock Just Crashed

Hedge Funds Weigh In On Pacific Gas & Electric

Institutional investors and hedge funds have recently made changes to their positions in the business. Fox Hill Wealth Management purchased a new stake in shares of Pacific Gas & Electric during the 2nd quarter valued at about $1,818,000. Rakuten Investment Management Inc. purchased a new position in Pacific Gas & Electric in the second quarter worth about $6,210,000. Glenview Trust Co purchased a new position in Pacific Gas & Electric in the second quarter worth about $208,000. Empowered Funds LLC bought a new stake in Pacific Gas & Electric during the second quarter worth approximately $8,566,000. Finally, United Capital Financial Advisors LLC bought a new stake in Pacific Gas & Electric during the second quarter worth approximately $807,000. 78.56% of the stock is owned by hedge funds and other institutional investors.

Pacific Gas & Electric Stock Performance

The firm has a market capitalization of $34.23 billion, a PE ratio of 9.26, a P/E/G ratio of 0.86 and a beta of 0.24. The business has a 50-day simple moving average of $17.28 and a 200-day simple moving average of $17.30. The company has a debt-to-equity ratio of 1.90, a current ratio of 1.22 and a quick ratio of 1.15.

Pacific Gas & Electric (NYSE:PCG) last announced its earnings results on Thursday, July 23rd. The utilities provider reported $0.40 EPS for the quarter, topping analysts’ consensus estimates of $0.36 by $0.04. The firm had revenue of $5.90 billion during the quarter, compared to analysts’ expectations of $6.20 billion. Pacific Gas & Electric had a return on equity of 12.48% and a net margin of 12.25%.The company’s quarterly revenue was up .1% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.31 EPS. Pacific Gas & Electric has set its FY 2026 guidance at 1.640-1.660 EPS. Equities research analysts expect that Pacific Gas & Electric Co. will post 1.65 earnings per share for the current fiscal year.

Pacific Gas & Electric Company Profile

Pacific Gas & Electric (NYSE: PCG) is an investor-owned utility holding company whose principal operating subsidiary, Pacific Gas and Electric Company, provides electricity and natural gas service in northern and central California. The company’s core activities include the generation, procurement, transmission and distribution of electric power, as well as the transmission and distribution of natural gas. PG&E serves a broad mix of residential, commercial, and industrial customers across urban and rural communities within its California service territory.

PG&E’s operations encompass utility infrastructure planning and construction, grid operations, customer service and energy procurement.