NRG Energy, Inc. $NRG Shares Sold by First Trust Advisors LP

Key Points

• First Trust Advisors LP cut its stake in NRG by 32.7%, selling 290,605 shares and leaving it with 596,808 shares valued at about $96.65 million.
• NRG missed on EPS ($1.04 vs. $1.19 expected) but reported revenue of $7.75 billion (above $6.68 billion estimate) with revenue up 13.7% year‑over‑year and a return on equity of 109.48%.
• The company raised its quarterly dividend to $0.475 ($1.90 annual, ~1.2% yield) and carries a consensus analyst rating of Moderate Buy with a $196.33 price target.

First Trust Advisors LP cut its position in shares of NRG Energy, Inc. (NYSE:NRG - Free Report) by 32.7% during the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 596,808 shares of the utilities provider's stock after selling 290,605 shares during the quarter. First Trust Advisors LP owned 0.31% of NRG Energy worth $96,653,000 at the end of the most recent reporting period.

Other institutional investors have also recently added to or reduced their stakes in the company. Holocene Advisors LP lifted its position in shares of NRG Energy by 113.3% in the 2nd quarter. Holocene Advisors LP now owns 1,444,271 shares of the utilities provider's stock worth $231,921,000 after buying an additional 767,014 shares during the last quarter. Worldquant Millennium Advisors LLC grew its position in shares of NRG Energy by 492.5% during the 2nd quarter. Worldquant Millennium Advisors LLC now owns 883,781 shares of the utilities provider's stock valued at $141,918,000 after buying an additional 734,624 shares during the last quarter. Bessemer Group Inc. raised its stake in NRG Energy by 4,470.7% during the third quarter. Bessemer Group Inc. now owns 614,524 shares of the utilities provider's stock worth $99,521,000 after acquiring an additional 601,079 shares during the period. TimesSquare Capital Management LLC acquired a new position in NRG Energy in the third quarter valued at approximately $76,415,000. Finally, Federated Hermes Inc. raised its position in shares of NRG Energy by 87.2% during the 2nd quarter. Federated Hermes Inc. now owns 673,152 shares of the utilities provider's stock worth $108,095,000 after purchasing an additional 313,482 shares during the period. Institutional investors own 97.72% of the company's stock.

NRG Energy Price Performance

Shares of NRG opened at $155.44 on Tuesday. The firm has a market capitalization of $33.30 billion, a price-to-earnings ratio of 39.45 and a beta of 1.26. The company has a debt-to-equity ratio of 15.92, a quick ratio of 1.58 and a current ratio of 1.64. NRG Energy, Inc. has a one year low of $79.57 and a one year high of $189.96. The stock's fifty day moving average is $159.73 and its 200-day moving average is $161.69.

NRG Energy (NYSE:NRG - Get Free Report) last posted its quarterly earnings data on Tuesday, February 24th. The utilities provider reported $1.04 earnings per share for the quarter, missing the consensus estimate of $1.19 by ($0.15). The company had revenue of $7.75 billion during the quarter, compared to analyst estimates of $6.68 billion. NRG Energy had a return on equity of 109.48% and a net margin of 2.81%.The business's revenue for the quarter was up 13.7% compared to the same quarter last year. During the same period in the previous year, the company earned $1.56 EPS. Equities analysts anticipate that NRG Energy, Inc. will post 6.36 EPS for the current year.

NRG Energy Increases Dividend

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

Analyst Ratings Changes

NRG has been the subject of a number of analyst reports. UBS Group started coverage on NRG Energy in a research report on Tuesday, December 9th. They set a "buy" rating and a $211.00 price objective for the company. Zacks Research upgraded NRG Energy from a "strong sell" rating to a "hold" rating in a research note on Monday, February 23rd. Evercore started coverage on shares of NRG Energy in a research report on Wednesday, February 25th. They set an "outperform" rating and a $215.00 price target for the company. The Goldman Sachs Group initiated coverage on shares of NRG Energy in a report on Friday. They issued a "buy" rating and a $197.00 price objective on the stock. Finally, Morgan Stanley set a $153.00 target price on shares of NRG Energy in a research note on Tuesday, February 17th. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, NRG Energy presently has a consensus rating of "Moderate Buy" and a consensus price target of $196.33.

Insider Activity

In related news, CFO Bruce Chung sold 12,383 shares of the firm's stock in a transaction that occurred on Wednesday, January 7th. The shares were sold at an average price of $156.56, for a total transaction of $1,938,682.48. Following the transaction, the chief financial officer owned 79,147 shares in the company, valued at $12,391,254.32. This trade represents a 13.53% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Robert J. Gaudette sold 45,000 shares of the business's stock in a transaction that occurred on Tuesday, January 6th. The stock was sold at an average price of $158.76, for a total value of $7,144,200.00. Following the sale, the vice president directly owned 63,920 shares in the company, valued at approximately $10,147,939.20. The trade was a 41.31% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 172,556 shares of company stock worth $27,550,446 over the last three months. Corporate insiders own 0.61% of the company's stock.

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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