NRG Energy (NYSE:NRG) Reaches New 1-Year Low After Analyst Downgrade

Key Points

• NRG Energy shares hit a new 52-week low of $103.49 after Morgan Stanley cut its price target from $162 to $159 while maintaining an equal-weight rating.
• Despite the decline, analysts maintain a “Moderate Buy” consensus, with an average price target of $198.21 versus the current share price.
• NRG reported quarterly EPS of $1.49, below the $1.69 consensus estimate, although revenue rose 11% year over year to $7.48 billion. The company also pays a quarterly dividend of $0.475, equivalent to a 1.9% annual yield.

NRG Energy, Inc. (NYSE:NRG - Get Free Report)'s stock price reached a new 52-week low during trading on Monday after Morgan Stanley lowered their price target on the stock from $162.00 to $159.00. Morgan Stanley currently has an equal weight rating on the stock. NRG Energy traded as low as $103.49 and last traded at $103.8610, with a volume of 3691190 shares traded. The stock had previously closed at $103.66.

Other analysts have also issued research reports about the company. BNP Paribas Exane set a $221.00 price target on NRG Energy in a research note on Wednesday, August 19th. Scotiabank cut their price objective on shares of NRG Energy from $226.00 to $211.00 and set a "sector outperform" rating for the company in a research report on Wednesday, August 5th. Evercore reiterated an "outperform" rating and issued a $195.00 price target on shares of NRG Energy in a report on Wednesday, August 5th. Wells Fargo & Company boosted their price objective on NRG Energy from $203.00 to $209.00 and gave the company an "overweight" rating in a research note on Thursday, July 16th. Finally, Siebert Williams Shank began coverage on NRG Energy in a research note on Monday, July 6th. They set a "buy" rating and a $184.00 target price on the stock. One investment analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, NRG Energy presently has a consensus rating of "Moderate Buy" and an average price target of $198.21.

Insider Activity at NRG Energy

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

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Sound Income Strategies LLC boosted its position in shares of NRG Energy by 17.9% in the first quarter. Sound Income Strategies LLC now owns 455 shares of the utilities provider's stock worth $68,000 after buying an additional 69 shares during the period. Hilton Head Capital Partners LLC lifted its holdings in shares of NRG Energy by 50.0% in the first quarter. Hilton Head Capital Partners LLC now owns 219 shares of the utilities provider's stock valued at $32,000 after purchasing an additional 73 shares in the last quarter. Parallel Advisors LLC lifted its stake in NRG Energy by 3.0% during the first quarter. Parallel Advisors LLC now owns 2,523 shares of the utilities provider's stock worth $369,000 after purchasing an additional 74 shares during the last quarter. Gamco Investors INC. ET AL raised its stake in shares of NRG Energy by 1.0% in the first quarter. Gamco Investors INC. ET AL now owns 8,138 shares of the utilities provider's stock worth $1,189,000 after purchasing an additional 77 shares during the last quarter. Finally, Cullen Frost Bankers Inc. grew its holdings in shares of NRG Energy by 8.1% in the fourth quarter. Cullen Frost Bankers Inc. now owns 1,046 shares of the utilities provider's stock valued at $167,000 after purchasing an additional 78 shares in the last quarter. Institutional investors and hedge funds own 97.72% of the company's stock.

NRG Energy Price Performance

The company has a quick ratio of 0.89, a current ratio of 0.97 and a debt-to-equity ratio of 5.17. The company has a market cap of $21.59 billion, a PE ratio of 27.46 and a beta of 1.18. The firm has a 50 day simple moving average of $121.30 and a 200-day simple moving average of $136.88.

NRG Energy (NYSE:NRG - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The utilities provider reported $1.49 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.69 by ($0.20). The firm had revenue of $7.48 billion during the quarter, compared to analysts' expectations of $7.31 billion. NRG Energy had a return on equity of 52.95% and a net margin of 2.56%.The firm's revenue was up 11.0% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.73 EPS. NRG Energy has set its FY 2026 guidance at 7.900-9.900 EPS. As a group, research analysts predict that NRG Energy, Inc. will post 8.61 earnings per share for the current fiscal year.

NRG Energy Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, August 17th. Shareholders of record on Monday, August 3rd were given a $0.475 dividend. The ex-dividend date was Monday, August 3rd. This represents a $1.90 annualized dividend and a yield of 1.9%. NRG Energy's payout ratio is 50.26%.

NRG Energy Company Profile

NRG Energy, Inc is a North American energy and home services company headquartered in Houston, Texas. The company operates through power generation and energy retail businesses, supplying electricity and related services to residential, commercial and industrial customers.

NRG owns and operates a diverse portfolio of power-generation assets, including natural gas, coal, nuclear and renewable facilities. It also sells electricity and natural gas through brands such as Reliant, Direct Energy and Green Mountain Energy, with retail operations serving customers in competitive energy markets across the United States and Canada.

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

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