NRG Energy (NYSE:NRG) Stock Price Up 8.3% - Should You Buy?

Key Points

• NRG Energy shares surged 8.3% to approximately $104.81, though trading volume was 76% below the average daily level.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $198.21, substantially above the current share price.
• The company’s latest quarterly results were mixed: revenue rose 11% year over year to $7.48 billion and exceeded expectations, but EPS of $1.49 missed estimates. NRG also declared a quarterly dividend of $0.475, equating to a 1.8% annualized yield.

NRG Energy, Inc. (NYSE:NRG - Get Free Report) shot up 8.3% on Tuesday. The company traded as high as $104.23 and last traded at $104.8120. Approximately 649,169 shares traded hands during trading, a decline of 76% from the average daily volume of 2,703,820 shares. The stock had previously closed at $96.80.

Wall Street Analyst Weigh In

A number of research analysts have commented on NRG shares. UBS Group reduced their price target 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. 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 note on Wednesday, August 5th. Williams Trading set a $184.00 target price on shares of NRG Energy in a report on Monday, July 6th. Morgan Stanley lowered their price target on shares of NRG Energy from $162.00 to $159.00 and set an "equal weight" rating for the company in a research note on Friday, September 18th. Finally, Barclays upped their price target on shares of NRG Energy from $200.00 to $204.00 and gave the company an "overweight" rating in a research report on Tuesday, July 28th. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, NRG Energy presently has a consensus rating of "Moderate Buy" and an average price target of $198.21.

NRG Energy Stock Up 7.8%

The company has a market capitalization of $22.01 billion, a P/E ratio of 27.62 and a beta of 1.17. The company has a current ratio of 0.97, a quick ratio of 0.89 and a debt-to-equity ratio of 5.17. The stock's fifty day moving average is $112.98 and its 200 day moving average is $132.46.

NRG Energy (NYSE:NRG - Get Free Report) last released its quarterly earnings data 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 net margin of 2.56% and a return on equity of 52.95%. NRG Energy's revenue was up 11.0% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.73 EPS. NRG Energy has set its FY 2026 guidance at 7.900-9.900 EPS. Research analysts predict that NRG Energy, Inc. will post 8.61 EPS for the current fiscal year.

NRG Energy Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, August 17th. Investors of record on Monday, August 3rd were paid a $0.4750 dividend. The ex-dividend date of this dividend was Monday, August 3rd. This represents a $1.90 dividend on an annualized basis and a yield of 1.8%. NRG Energy's dividend payout ratio (DPR) is presently 50.26%.

Insider Transactions at NRG Energy

In other NRG Energy news, CAO Gerald Alfred Spencer sold 1,580 shares of the business's stock in a transaction 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 transaction, the chief accounting officer directly owned 6,213 shares of the company's stock, valued at approximately $751,338.09. The trade was a 20.27% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.43% of the company's stock.

Institutional Trading of NRG Energy

Several large investors have recently bought and sold shares of NRG. Sound Income Strategies LLC lifted 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 last quarter. Hilton Head Capital Partners LLC raised its stake in shares of NRG Energy by 50.0% in the 1st quarter. Hilton Head Capital Partners LLC now owns 219 shares of the utilities provider's stock valued at $32,000 after acquiring an additional 73 shares in the last quarter. Parallel Advisors LLC lifted its holdings in NRG Energy by 3.0% in the 1st 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 lifted its holdings in NRG Energy by 1.0% in the 1st 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, Aspen Grove Capital LLC boosted its position in NRG Energy by 3.1% during the first quarter. Aspen Grove Capital LLC now owns 2,698 shares of the utilities provider's stock worth $394,000 after purchasing an additional 81 shares during the period. 97.72% of the stock is owned by institutional investors.

NRG Energy Company Profile

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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