Talen Energy (NASDAQ:TLN) Hits New 12-Month Low - Should You Sell?

Key Points

• Talen Energy shares hit a new 52-week low, trading as low as $288.58 and closing at $293.73, well below the 50-day and 200-day moving averages near $353–$355.
• The company’s latest quarterly results missed expectations, reporting a $2.00-per-share loss versus consensus earnings of $3.21 and revenue of $747 million versus estimates of $832.81 million.
• Analyst sentiment remains generally positive, with a “Moderate Buy” consensus and an average price target of $466.86, although recent downgrades and target-price cuts highlight concerns about the stock’s outlook.

Talen Energy Corporation (NASDAQ:TLN - Get Free Report)'s share price hit a new 52-week low on Wednesday . The company traded as low as $288.58 and last traded at $293.73, with a volume of 947993 shares traded. The stock had previously closed at $295.76.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on TLN. The Goldman Sachs Group reissued a "buy" rating and issued a $509.00 price objective on shares of Talen Energy in a research note on Monday, August 10th. Jefferies Financial Group cut their target price on Talen Energy from $453.00 to $422.00 and set a "hold" rating for the company in a research note on Monday, July 20th. Scotiabank raised their target price on Talen Energy from $463.00 to $470.00 and gave the company a "sector perform" rating in a report on Wednesday, July 15th. Weiss Ratings lowered Talen Energy from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Tuesday, August 18th. Finally, Zacks Research cut Talen Energy from a "strong-buy" rating to a "hold" rating in a report on Thursday, August 27th. Ten analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $466.86.

Talen Energy Stock Down 0.7%

The company has a market capitalization of $14.07 billion, a P/E ratio of -70.44 and a beta of 1.85. The company has a debt-to-equity ratio of 5.82, a quick ratio of 0.55 and a current ratio of 0.78. The firm's fifty day moving average is $352.84 and its 200-day moving average is $355.28.

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 company had revenue of $747.00 million for the quarter, compared to analyst estimates of $832.81 million. Talen Energy had a positive return on equity of 43.32% and a negative net margin of 5.38%. As a group, equities research analysts predict that Talen Energy Corporation will post 21.99 EPS for the current year.

Insider Activity

In other news, Director Gizman I. Abbas sold 2,600 shares of the company's stock in a transaction on Monday, June 15th. The shares were sold at an average price of $380.00, for a total transaction of $988,000.00. Following the completion of the transaction, the director directly owned 2,606 shares in the company, valued at approximately $990,280. This represents a 49.94% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.78% of the company's stock.

Institutional Investors Weigh In On Talen Energy

Several hedge funds have recently modified their holdings of TLN. Amundi acquired a new position in Talen Energy in the 1st quarter worth about $299,000. AQR Capital Management LLC acquired a new stake in shares of Talen Energy during the first quarter valued at about $1,732,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in shares of Talen Energy by 11.7% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 7,280 shares of the utilities provider's stock worth $1,454,000 after purchasing an additional 761 shares during the last quarter. NewEdge Advisors LLC grew its holdings in shares of Talen Energy by 17,400.0% during the first quarter. NewEdge Advisors LLC now owns 875 shares of the utilities provider's stock worth $175,000 after purchasing an additional 870 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in shares of Talen Energy by 15.3% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 49,050 shares of the utilities provider's stock worth $9,794,000 after purchasing an additional 6,498 shares during the last quarter. Institutional investors and hedge funds own 0.38% of the company's stock.

About Talen Energy

Talen Energy Inc is an independent power producer that develops and operates a diversified portfolio of thermal and renewable generation facilities across the United States. The company supplies wholesale electricity and related services to utilities, large industrial customers, and power marketers, participating actively in regional markets such as PJM Interconnection and the Electric Reliability Council of Texas (ERCOT). Talen's asset base comprises a mix of natural gas-fired, coal-fired and nuclear generation, supplemented by battery storage and other flexible resources designed to support the evolving needs of the grid.

Established in December 2015 through the combination of the competitive generation businesses previously held by two major utility groups, Talen Energy was structured as a standalone, publicly traded entity on the NASDAQ stock exchange (TLN).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source