California State Teachers Retirement System Increases Stake in NRG Energy, Inc. $NRG

Key Points

• California State Teachers Retirement System increased its NRG Energy stake by 14,662.9% to 34.6 million shares, representing about 16.39% of the company and valued at approximately $5.05 billion.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $198.43, despite several recent target reductions.
• NRG shares opened at $115.47, down 3.5%, after the company reported quarterly EPS of $1.49—below the $1.69 consensus estimate—while revenue rose 11% year over year to $7.48 billion. The company also maintains a quarterly dividend of $0.475 per share, or $1.90 annually.

California State Teachers Retirement System boosted its stake in shares of NRG Energy, Inc. (NYSE:NRG - Free Report) by 14,662.9% during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 34,582,918 shares of the utilities provider's stock after purchasing an additional 34,348,662 shares during the period. California State Teachers Retirement System owned approximately 16.39% of NRG Energy worth $5,051,181,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also made changes to their positions in the stock. MV Capital Management Inc. purchased a new stake in shares of NRG Energy during the fourth quarter valued at $27,000. Motiv8 Investments LLC purchased a new position in NRG Energy in the 4th quarter worth $27,000. Core Wealth Advisors LLC acquired a new stake in NRG Energy during the 4th quarter worth about $28,000. EMC Capital Management purchased a new position in shares of NRG Energy in the fourth quarter worth about $30,000. Finally, SHP Wealth Management acquired a new position in NRG Energy in the 4th quarter worth approximately $32,000. Hedge funds and other institutional investors own 97.72% of the company's stock.

Insider Buying and Selling at NRG Energy

In other news, CAO Gerald Alfred Spencer sold 1,580 shares of NRG Energy stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $120.93, for a total value of $191,069.40. Following the sale, the chief accounting officer owned 6,213 shares in the company, valued at $751,338.09. This trade represents a 20.27% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Virginia Kinney sold 20,000 shares of the business's stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $127.52, for a total transaction of $2,550,400.00. Following the sale, the vice president directly owned 45,111 shares of the company's stock, valued at $5,752,554.72. This represents a 30.72% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.43% of the company's stock.

Analyst Ratings Changes

A number of research analysts have issued reports on NRG shares. Wells Fargo & Company boosted their price target on NRG Energy from $203.00 to $209.00 and gave the company an "overweight" rating in a report on Thursday, July 16th. BNP Paribas Exane set a $221.00 target price on shares of NRG Energy in a research note on Wednesday, August 19th. UBS Group dropped their price target on shares of NRG Energy from $221.00 to $216.00 and set a "buy" rating on the stock in a research report on Tuesday, July 28th. Siebert Williams Shank assumed coverage on shares of NRG Energy in a report on Monday, July 6th. They issued a "buy" rating and a $184.00 price objective for the company. Finally, Scotiabank decreased their price objective on shares of NRG Energy from $226.00 to $211.00 and set a "sector outperform" rating for the company in a research report on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $198.43.

NRG Energy Stock Down 3.5%

NRG Energy stock opened at $115.47 on Thursday. The company has a debt-to-equity ratio of 5.17, a current ratio of 0.97 and a quick ratio of 0.89. The stock has a market capitalization of $24.36 billion, a PE ratio of 30.55 and a beta of 1.18. The business has a 50 day simple moving average of $125.58 and a 200-day simple moving average of $140.43. NRG Energy, Inc. has a 12 month low of $108.34 and a 12 month high of $189.96.

NRG Energy (NYSE:NRG - Get Free Report) last announced its earnings results on Tuesday, August 4th. The utilities provider reported $1.49 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.69 by ($0.20). NRG Energy had a net margin of 2.56% and a return on equity of 52.95%. The business had revenue of $7.48 billion for the quarter, compared to analysts' expectations of $7.31 billion. During the same quarter last year, the business earned $1.73 EPS. The company's quarterly revenue was up 11.0% on a year-over-year basis. NRG Energy has set its FY 2026 guidance at 7.900-9.900 EPS. On average, analysts anticipate that NRG Energy, Inc. will post 8.6 EPS for the current fiscal year.

NRG Energy Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, August 17th. Shareholders of record on Monday, August 3rd were issued a dividend of $0.475 per share. This represents a $1.90 annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend was Monday, August 3rd. NRG Energy's dividend payout ratio (DPR) is presently 50.26%.

NRG Energy Company Profile

NRG Energy, Inc is a North American energy and home services company headquartered in Houston, Texas. The company operates through power generation and energy retail businesses, supplying electricity and related services to residential, commercial and industrial customers.

NRG owns and operates a diverse portfolio of power-generation assets, including natural gas, coal, nuclear and renewable facilities. It also sells electricity and natural gas through brands such as Reliant, Direct Energy and Green Mountain Energy, with retail operations serving customers in competitive energy markets across the United States and Canada.

In addition to its energy operations, NRG provides smart-home, security and related connected-home services through its Vivint business.

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