NRG Energy (NYSE:NRG) Reaches New 1-Year Low - Here's What Happened

Key Points

• NRG Energy hit a new 52-week low, trading as low as $88.24 after a prior close of $96.26.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $173.56, despite Morgan Stanley lowering its target to $144.
• In its latest reported quarter, NRG’s EPS of $1.49 missed estimates of $1.69, while revenue rose 11% year over year to $7.48 billion.

NRG Energy, Inc. (NYSE:NRG - Get Free Report) shares reached a new 52-week low during mid-day trading on Wednesday. The stock traded as low as $88.24 and last traded at $88.3120, with a volume of 635,211 shares changing hands. The stock had previously closed at $96.26.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on the company. Raymond James Financial set a $152.00 price objective on NRG Energy in a report on Wednesday, October 21st. Evercore restated an "outperform" rating and issued a $195.00 price objective on shares of NRG Energy in a report on Wednesday, August 5th. HSBC initiated coverage on shares of NRG Energy in a report on Thursday, October 22nd. They issued a "buy" rating and a $179.00 price objective for the company. Morgan Stanley dropped their price target on NRG Energy from $159.00 to $144.00 and set an "equal weight" rating for the company in a research report on Wednesday, October 21st. Finally, Seaport Research Partners set a $160.00 price target on NRG Energy in a report on Monday, October 19th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $173.56.

NRG Energy Stock Down 11.4%

The firm has a 50-day moving average of $103.85 and a two-hundred day moving average of $134.75. 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 capitalization of $18.00 billion, a PE ratio of 22.61 and a beta of 1.22.

NRG Energy (NYSE:NRG - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The utilities provider reported $1.49 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 last year, the company earned $1.73 EPS. The business's revenue for the quarter was up 11.0% on a year-over-year basis. Equities research analysts predict that NRG Energy, Inc. will post 8.62 earnings per share for the current fiscal year.

NRG Energy Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, November 16th. Stockholders of record on Monday, November 2nd will be issued a $0.4750 dividend. This represents a $1.90 annualized dividend and a dividend yield of 2.2%. The ex-dividend date is Monday, November 2nd. NRG Energy's dividend payout ratio is currently 50.26%.

Insider Buying and Selling at NRG Energy

In related news, CAO Gerald Alfred Spencer sold 1,580 shares of the stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $120.93, for a total transaction of $191,069.40. Following the completion of the transaction, the chief accounting officer owned 6,213 shares of the company's stock, valued at approximately $751,338.09. This trade represents a 20.27% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.43% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of NRG. Foster & Motley Inc. bought a new position in shares of NRG Energy during the second quarter worth about $2,014,000. Tema ETFs LLC grew its position in shares of NRG Energy by 1,481.8% in the 2nd quarter. Tema ETFs LLC now owns 59,745 shares of the utilities provider's stock worth $8,726,000 after acquiring an additional 55,968 shares in the last quarter. Oliver Luxxe Assets LLC bought a new stake in shares of NRG Energy in the 2nd quarter valued at approximately $6,456,000. Oaktree Capital Management LP bought a new stake in shares of NRG Energy in the 1st quarter valued at approximately $7,165,000. Finally, Sei Investments Co. raised its position in shares of NRG Energy by 50.4% during the 1st quarter. Sei Investments Co. now owns 857,186 shares of the utilities provider's stock valued at $125,268,000 after acquiring an additional 287,381 shares in the last quarter. 97.72% of the stock is currently owned by hedge funds and other institutional investors.

About NRG Energy

NRG Energy, Inc is an integrated power and home services company headquartered in Houston, Texas. The company produces and sells electricity through a diverse generation portfolio that includes natural gas, coal, nuclear power, renewable energy and battery storage. NRG serves wholesale and retail energy markets, with operations and customers primarily in the United States and Canada.

Through retail brands including Reliant and Direct Energy, NRG provides electricity, natural gas and related energy products to residential, commercial and industrial customers.

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