NRG Energy (NYSE:NRG) Stock Sees Heavy Call Option Buying

Key Points

• NRG Energy saw unusually heavy call-option activity on Wednesday, with 14,724 calls purchased—41% above its average daily volume.
• The stock fell 1.3% to $95.88 and remains well below its 50-day and 200-day moving averages. NRG recently missed quarterly EPS expectations, although revenue rose 11% year over year.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $198.21; the company also pays a quarterly dividend equivalent to a 2.0% annual yield.

NRG Energy, Inc. (NYSE:NRG - Get Free Report) was the target of unusually large options trading on Wednesday. Stock investors acquired 14,724 call options on the company. This represents an increase of 41% compared to the average daily volume of 10,419 call options.

Insider Transactions at NRG Energy

In other NRG Energy news, CAO Gerald Alfred Spencer sold 1,580 shares of the stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $120.93, for a total transaction of $191,069.40. Following the transaction, the chief accounting officer directly owned 6,213 shares in the company, valued at approximately $751,338.09. This represents a 20.27% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.43% of the company's stock.

Hedge Funds Weigh In On NRG Energy

A number of hedge funds have recently added to or reduced their stakes in NRG. MV Capital Management Inc. bought a new position in shares of NRG Energy in the fourth quarter valued at approximately $27,000. EMC Capital Management bought a new position in NRG Energy during the 4th quarter valued at $30,000. SHP Wealth Management purchased a new position in NRG Energy during the 4th quarter worth $32,000. Hilton Head Capital Partners LLC boosted its holdings in NRG Energy by 50.0% during the 1st quarter. Hilton Head Capital Partners LLC now owns 219 shares of the utilities provider's stock worth $32,000 after acquiring an additional 73 shares during the last quarter. Finally, Cassaday & Co Wealth Management LLC bought a new stake in shares of NRG Energy in the 1st quarter worth $33,000. Institutional investors and hedge funds own 97.72% of the company's stock.

NRG Energy Stock Down 1.3%

Shares of NYSE:NRG traded down $1.29 during trading on Wednesday, reaching $95.88. 3,663,056 shares of the stock were exchanged, compared to its average volume of 2,647,756. NRG Energy has a 1-year low of $93.36 and a 1-year high of $189.96. The stock has a fifty day moving average of $115.61 and a two-hundred day moving average of $133.66. 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 firm has a market cap of $20.23 billion, a price-to-earnings ratio of 25.37 and a beta of 1.18.

NRG Energy (NYSE:NRG - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The utilities provider reported $1.49 earnings per share (EPS) for the quarter, missing the consensus estimate 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 during the quarter, compared to analyst estimates of $7.31 billion. During the same period in the previous year, the business posted $1.73 EPS. The business's revenue for the quarter was up 11.0% compared to the same quarter last year. NRG Energy has set its FY 2026 guidance at 7.900-9.900 EPS. Research analysts anticipate that NRG Energy will post 8.61 earnings per share for the current fiscal year.

NRG Energy Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, August 17th. Investors of record on Monday, August 3rd were issued a $0.4750 dividend. This represents a $1.90 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date was Monday, August 3rd. NRG Energy's dividend payout ratio is currently 50.26%.

Analysts Set New Price Targets

Several analysts have recently weighed in on the stock. Evercore reiterated an "outperform" rating and issued a $195.00 price objective on shares of NRG Energy in a research note on Wednesday, August 5th. Weiss Ratings cut shares of NRG Energy from a "hold (c+)" rating to a "hold (c)" rating in a report on Thursday, September 24th. Wells Fargo & Company lifted their price target on shares of NRG Energy from $203.00 to $209.00 and gave the company an "overweight" rating in a research note on Thursday, July 16th. Williams Trading set a $184.00 price objective on shares of NRG Energy in a report on Monday, July 6th. Finally, UBS Group cut their price objective 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. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, NRG Energy currently has an average rating of "Moderate Buy" and an average price target of $198.21.

About NRG Energy

NRG Energy, Inc NYSE: NRG is an integrated power and home services company headquartered in Houston, Texas. The company produces and sells electricity and natural gas and provides energy-related products and services to residential, commercial, industrial and institutional customers.

NRG operates power generation assets that use a range of fuel sources, including natural gas, coal, nuclear power and renewable energy. It also develops and supports technologies such as battery storage and offers electricity, natural gas, renewable energy and energy-management services through retail brands including Reliant, Direct Energy, Green Mountain Energy and other regional providers.

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

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