Capstone Capital Management Ltd Grows Stake in NRG Energy, Inc. $NRG

Key Points

• Capstone Capital Management boosted its NRG Energy stake by 254.8% in Q1, ending with 13,355 shares worth about $1.95 million.
• NRG’s latest quarter missed earnings estimates with EPS of $1.48 versus $1.78 expected, even though revenue came in above forecasts at $10.26 billion.
• The company recently paid a $0.475 quarterly dividend and Wall Street remains generally positive, with a Moderate Buy consensus and an average price target of $197.80.

Capstone Capital Management Ltd increased its position in NRG Energy, Inc. (NYSE:NRG - Free Report) by 254.8% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 13,355 shares of the utilities provider's stock after acquiring an additional 9,591 shares during the period. NRG Energy comprises about 1.9% of Capstone Capital Management Ltd's investment portfolio, making the stock its 16th biggest holding. Capstone Capital Management Ltd's holdings in NRG Energy were worth $1,952,000 at the end of the most recent reporting period.

A number of other hedge funds also recently bought and sold shares of NRG. MV Capital Management Inc. bought a new stake in shares of NRG Energy during the 4th quarter valued at about $27,000. Motiv8 Investments LLC bought a new position in shares of NRG Energy in the 4th quarter worth approximately $27,000. Core Wealth Advisors LLC purchased a new position in shares of NRG Energy in the fourth quarter worth approximately $28,000. EMC Capital Management bought a new stake in NRG Energy during the fourth quarter valued at approximately $30,000. Finally, SHP Wealth Management purchased a new stake in NRG Energy during the fourth quarter valued at 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 related news, VP Virginia Kinney sold 20,000 shares of the firm's stock in a transaction on Monday, June 15th. The shares were sold at an average price of $127.52, for a total transaction of $2,550,400.00. Following the completion of the transaction, the vice president directly owned 45,111 shares of the company's stock, valued at approximately $5,752,554.72. This trade represents a 30.72% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.43% of the company's stock.

NRG Energy Stock Down 0.5%

Shares of NRG stock opened at $137.36 on Thursday. The company has a debt-to-equity ratio of 4.68, a current ratio of 0.84 and a quick ratio of 0.78. NRG Energy, Inc. has a one year low of $120.11 and a one year high of $189.96. The company's fifty day moving average price is $137.10 and its 200-day moving average price is $150.64. The company has a market capitalization of $28.98 billion, a price-to-earnings ratio of 161.60 and a beta of 1.21.

NRG Energy (NYSE:NRG - Get Free Report) last issued its earnings results on Wednesday, May 6th. The utilities provider reported $1.48 earnings per share for the quarter, missing the consensus estimate of $1.78 by ($0.30). The firm had revenue of $10.26 billion during the quarter, compared to the consensus estimate of $8.43 billion. NRG Energy had a return on equity of 70.67% and a net margin of 0.74%.The company's quarterly revenue was up 19.5% on a year-over-year basis. During the same period in the prior year, the company posted $2.68 EPS. NRG Energy has set its FY 2026 guidance at 7.900-9.900 EPS. Sell-side analysts expect that NRG Energy, Inc. will post 8.89 EPS for the current fiscal year.

NRG Energy Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, May 15th. Shareholders of record on Friday, May 1st were paid a $0.475 dividend. This represents a $1.90 annualized dividend and a yield of 1.4%. The ex-dividend date was Friday, May 1st. NRG Energy's dividend payout ratio is presently 223.53%.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on NRG shares. Raymond James Financial set a $210.00 price target on shares of NRG Energy in a research report on Monday, April 27th. Barclays reduced their price objective on NRG Energy from $203.00 to $200.00 and set an "overweight" rating for the company in a research note on Tuesday, March 31st. Williams Trading set a $184.00 target price on NRG Energy in a research report on Monday. Wolfe Research raised NRG Energy from a "peer perform" rating to an "outperform" rating and set a $190.00 price target for the company in a report on Wednesday, March 18th. Finally, BNP Paribas Exane started coverage on NRG Energy in a research report on Wednesday, March 18th. They issued an "outperform" rating and a $232.00 price target for the company. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $197.80.

NRG Energy Company Profile

NRG Energy NYSE: NRG is a U.S.-based integrated power company headquartered in Houston, Texas. The company develops, owns and operates a diversified portfolio of power generation assets and participates in wholesale and retail energy markets. NRG supplies electricity to utilities, commercial and industrial customers, and retail consumers, while also providing energy-related products and services designed to manage consumption and support reliability.

NRG's generation mix includes conventional thermal plants as well as renewable and distributed energy resources.

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