NRG Energy, Inc. $NRG Shares Acquired by Picton Mahoney Asset Management

Key Points

• Picton Mahoney Asset Management boosted its stake in NRG by 281.5% in Q3, owning 33,572 shares after purchasing an additional 24,772 shares, valued at about $5.44 million.
• LS Power affiliates launched an upsized secondary offering of roughly 14.3 million shares priced at $164 (~$2.35 billion), creating near‑term selling pressure and dilution, while NRG's board has authorized a $3.0 billion buyback (and affiliates tied a separate $300M repurchase) to help offset the selling.
• Insiders have been net sellers—172,556 shares worth $27.55 million sold in the past three months (including CFO Bruce Chung and VP Robert Gaudette)—and NRG recently missed EPS estimates ($1.04 vs. $1.19) despite a revenue beat and raised its quarterly dividend to $0.475 (annualized $1.90, ~1.2% yield).

Picton Mahoney Asset Management boosted its holdings in NRG Energy, Inc. (NYSE:NRG - Free Report) by 281.5% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 33,572 shares of the utilities provider's stock after purchasing an additional 24,772 shares during the quarter. Picton Mahoney Asset Management's holdings in NRG Energy were worth $5,438,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently bought and sold shares of NRG. Quent Capital LLC acquired a new position in NRG Energy in the third quarter valued at $25,000. Atlantic Union Bankshares Corp grew its holdings in shares of NRG Energy by 90.4% during the third quarter. Atlantic Union Bankshares Corp now owns 179 shares of the utilities provider's stock worth $29,000 after buying an additional 85 shares during the last quarter. Fourth Dimension Wealth LLC acquired a new position in NRG Energy in the 2nd quarter valued at about $32,000. Twin Peaks Wealth Advisors LLC purchased a new stake in NRG Energy during the 2nd quarter valued at approximately $35,000. Finally, Zions Bancorporation National Association UT lifted its position in NRG Energy by 32.1% during the 2nd quarter. Zions Bancorporation National Association UT now owns 383 shares of the utilities provider's stock worth $62,000 after acquiring an additional 93 shares during the period. 97.72% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In related news, CFO Bruce Chung sold 12,383 shares of the company's stock in a transaction that occurred on Wednesday, January 7th. The stock was sold at an average price of $156.56, for a total value of $1,938,682.48. Following the sale, the chief financial officer owned 79,147 shares in the company, valued at $12,391,254.32. This represents a 13.53% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, VP Robert J. Gaudette sold 45,000 shares of the firm's stock in a transaction that occurred on Tuesday, January 6th. The shares were sold at an average price of $158.76, for a total value of $7,144,200.00. Following the completion of the transaction, the vice president directly owned 63,920 shares of the company's stock, valued at $10,147,939.20. The trade was a 41.31% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 172,556 shares of company stock worth $27,550,446. 0.86% of the stock is owned by company insiders.

NRG Energy Trading Up 0.9%

Shares of NRG stock opened at $163.54 on Thursday. The business's fifty day moving average price is $159.92 and its 200 day moving average price is $161.41. The firm has a market capitalization of $35.11 billion, a PE ratio of 41.51 and a beta of 1.26. The company has a debt-to-equity ratio of 15.92, a current ratio of 1.64 and a quick ratio of 1.58. NRG Energy, Inc. has a 1-year low of $79.57 and a 1-year high of $189.96.

NRG Energy (NYSE:NRG - Get Free Report) last released its earnings results on Tuesday, February 24th. The utilities provider reported $1.04 EPS for the quarter, missing analysts' consensus estimates of $1.19 by ($0.15). NRG Energy had a net margin of 2.81% and a return on equity of 109.48%. The business had revenue of $7.75 billion during the quarter, compared to analyst estimates of $6.68 billion. During the same period last year, the business posted $1.56 EPS. NRG Energy's revenue was up 13.7% compared to the same quarter last year. As a group, sell-side analysts forecast that NRG Energy, Inc. will post 6.36 EPS for the current fiscal year.

NRG Energy declared that its board has initiated a stock repurchase program on Thursday, November 6th that permits the company to buyback $3.00 billion in shares. This buyback authorization permits the utilities provider to reacquire up to 9.2% of its shares through open market purchases. Shares buyback programs are often a sign that the company's leadership believes its stock is undervalued.

NRG Energy Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, February 17th. Investors of record on Monday, February 2nd were issued a dividend of $0.475 per share. This is an increase from NRG Energy's previous quarterly dividend of $0.44. This represents a $1.90 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date of this dividend was Monday, February 2nd. NRG Energy's payout ratio is presently 48.22%.

Key Headlines Impacting NRG Energy

Here are the key news stories impacting NRG Energy this week:

• Positive Sentiment: NRG and affiliates announced a $300M buyback tied to the ownership reshaping, which supports the stock by offsetting some dilution from the affiliate sale. NRG Energy Reshapes Ownership With LS Power Exit And US$300m Buyback
• Positive Sentiment: NRG named Caroline Golin, Ph.D., as Chief Growth & Policy Officer to lead growth initiatives (data center expansion, policy strategy) — a hire that can accelerate organized growth opportunities and market-facing initiatives. NRG Energy Announces Appointment of Caroline Golin as Chief Growth and Policy Officer
• Neutral Sentiment: NRG filed an 8‑K updating financials for recent acquisitions — routine disclosure that clarifies near‑term earnings/asset integration but is unlikely to be a catalyst by itself. NRG Energy Updates Financials for Recent Acquisitions in 8-K
• Negative Sentiment: LS Power affiliates launched a large registered secondary offering (initially ~12.3M shares) to monetize a significant stake — creating immediate selling pressure and an overhang on the stock. NRG Energy Launches Major Secondary Offering and Buyback
• Negative Sentiment: The offering was upsized and priced at $164 per share (reports show ~14.3M shares / ~$2.35B), materially increasing free float and prompting immediate share sales by affiliates — a clear near‑term dilution and supply shock. NRG Energy Announces Pricing of Upsized Secondary Common Stock Offering
• Negative Sentiment: Market coverage reported sharp intraday declines after the priced secondary, reflecting investor concern about the size/timing of affiliate sales and potential further pressure if more shares are sold. NRG Energy Shares Slide On Priced Secondary Stock Offering

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on NRG. Raymond James Financial reiterated a "strong-buy" rating and issued a $225.00 target price on shares of NRG Energy in a research note on Monday, February 23rd. Wells Fargo & Company increased their price target on NRG Energy from $202.00 to $206.00 and gave the stock an "overweight" rating in a report on Tuesday, January 20th. Jefferies Financial Group dropped their price objective on shares of NRG Energy from $198.00 to $181.00 and set a "buy" rating on the stock in a research note on Tuesday, January 27th. BMO Capital Markets upped their price objective on shares of NRG Energy from $185.00 to $195.00 and gave the stock a "market perform" rating in a research report on Friday, November 7th. Finally, Weiss Ratings cut shares of NRG Energy from a "buy (b)" rating to a "hold (c+)" rating in a research note on Thursday, February 26th. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $190.67.

About NRG Energy

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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