Talen Energy Corporation (NASDAQ:TLN) Sees Significant Increase in Short Interest

Key Points

• Short interest surged 68.2% to 4.21 million shares as of October 15, representing 8.9% of Talen Energy’s outstanding shares and 3.1 days to cover.
• Analysts maintain a generally positive view, with a consensus “Moderate Buy” rating and an average price target of $458.69, despite several firms recently lowering their targets.
• Talen Energy shares opened at $343.12, while the company’s latest quarterly results missed EPS expectations by $5.21 despite revenue exceeding estimates.

Talen Energy Corporation (NASDAQ:TLN - Get Free Report) saw a significant increase in short interest during the month of October. As of October 15th, there was short interest totaling 4,213,646 shares, an increase of 68.2% from the September 30th total of 2,504,938 shares. Currently, 8.9% of the shares of the company are sold short. Based on an average daily volume of 1,366,669 shares, the days-to-cover ratio is presently 3.1 days.

Analyst Ratings Changes

Several research firms recently weighed in on TLN. Barclays cut their price objective on Talen Energy from $408.00 to $387.00 and set an "overweight" rating for the company in a research report on Tuesday, October 27th. Canadian Imperial Bank of Commerce lowered their target price on Talen Energy from $499.00 to $493.00 and set an "outperform" rating on the stock in a report on Wednesday. Scotiabank lifted their price target on Talen Energy from $463.00 to $470.00 and gave the stock a "sector perform" rating in a research report on Wednesday, July 15th. Jefferies Financial Group cut their price target on Talen Energy from $453.00 to $422.00 and set a "hold" rating for the company in a report on Monday, July 20th. Finally, Mizuho initiated coverage on Talen Energy in a research report on Monday, August 24th. They issued an "outperform" rating and a $405.00 price objective for the company. Twelve analysts have rated the stock with a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $458.69.

Hedge Funds Weigh In On Talen Energy

Hedge funds have recently made changes to their positions in the business. BlackRock Inc. acquired a new stake in shares of Talen Energy during the 2nd quarter valued at about $1,673,803,000. MFN Partners Management LP bought a new position in Talen Energy during the second quarter worth about $1,152,780,000. Carronade Capital Management LP lifted its stake in Talen Energy by 11.6% during the first quarter. Carronade Capital Management LP now owns 644,484 shares of the utilities provider's stock worth $205,739,000 after purchasing an additional 67,245 shares during the period. Two Seas Capital LP acquired a new stake in Talen Energy during the second quarter valued at approximately $194,900,000. Finally, William Blair Investment Management LLC bought a new stake in shares of Talen Energy in the 2nd quarter valued at approximately $191,231,000. Institutional investors and hedge funds own 0.38% of the company's stock.

Talen Energy Price Performance

Shares of TLN stock opened at $343.12 on Monday. Talen Energy has a 12 month low of $279.77 and a 12 month high of $449.84. The company has a market capitalization of $16.44 billion, a P/E ratio of -82.28 and a beta of 1.76. The stock has a 50 day moving average of $324.54 and a two-hundred day moving average of $349.58. The company has a current ratio of 0.78, a quick ratio of 0.55 and a debt-to-equity ratio of 5.82.

Talen Energy (NASDAQ:TLN - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The utilities provider reported ($2.00) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $3.21 by ($5.21). The firm had revenue of $959.00 million for the quarter, compared to the consensus estimate of $832.81 million. Talen Energy had a negative net margin of 5.38% and a positive return on equity of 43.32%. As a group, equities analysts expect that Talen Energy will post 18.02 EPS for the current year.

About Talen Energy

Talen Energy Corporation NASDAQ: TLN is an independent power producer that owns and operates power generation and energy infrastructure assets in the United States. The company sells electricity, capacity and ancillary services into wholesale power markets, serving utilities, commercial and industrial customers, and other energy market participants.

Talen's generation portfolio includes nuclear, natural gas and other power assets. Its Susquehanna nuclear power station in Pennsylvania is a central part of the company's operations, and Talen has also pursued energy infrastructure projects designed to support large-scale electricity users, including data centers and other technology-related facilities.

The company was formed in 2015 through the separation of competitive power generation assets from PPL Corporation.

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