Talen Energy (NASDAQ:TLN) Sets New 12-Month Low - Here's Why

Key Points

• Talen Energy shares hit a new 52-week low, falling to $300.52 and trading well below their 50-day and 200-day moving averages.
• The company’s latest quarterly results disappointed, with a $2.00 per-share loss versus expectations for $3.21 in earnings and revenue of $747 million versus an $832.81 million estimate.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and $466.86 target price, although some firms recently downgraded the stock to “Sell.”

Talen Energy Corporation (NASDAQ:TLN - Get Free Report) reached a new 52-week low on Thursday . The company traded as low as $300.52 and last traded at $301.6020, with a volume of 140279 shares traded. The stock had previously closed at $306.29.

Analysts Set New Price Targets

A number of analysts have issued reports on the company. BNP Paribas Exane reaffirmed an "outperform" rating and issued a $560.00 target price on shares of Talen Energy in a research note on Wednesday, August 19th. Morgan Stanley lowered their price target on Talen Energy from $508.00 to $503.00 and set an "overweight" rating for the company in a report on Friday, August 21st. Weiss Ratings downgraded Talen Energy from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Tuesday, August 18th. Wells Fargo & Company boosted their price objective on shares of Talen Energy from $482.00 to $501.00 and gave the company an "overweight" rating in a report on Thursday, August 6th. Finally, Wall Street Zen cut shares of Talen Energy from a "hold" rating to a "sell" rating in a research report on Saturday, August 8th. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $466.86.

Talen Energy Stock Performance

The company has a quick ratio of 0.55, a current ratio of 0.78 and a debt-to-equity ratio of 5.82. The firm has a 50-day moving average price of $363.49 and a 200 day moving average price of $356.84. The firm has a market capitalization of $14.69 billion, a PE ratio of -73.43 and a beta of 1.90.

Talen Energy (NASDAQ:TLN - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The utilities provider reported ($2.00) earnings per share (EPS) for the quarter, missing the consensus estimate of $3.21 by ($5.21). Talen Energy had a negative net margin of 5.38% and a positive return on equity of 43.32%. The firm had revenue of $747.00 million during the quarter, compared to analysts' expectations of $832.81 million. Research analysts expect that Talen Energy Corporation will post 21.99 earnings per share for the current year.

Insider Transactions at Talen Energy

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

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Daiwa Securities Group Inc. increased its position in Talen Energy by 5.7% during the 4th quarter. Daiwa Securities Group Inc. now owns 671 shares of the utilities provider's stock worth $252,000 after purchasing an additional 36 shares during the period. Ritholtz Wealth Management lifted its holdings in shares of Talen Energy by 3.6% in the 1st quarter. Ritholtz Wealth Management now owns 1,045 shares of the utilities provider's stock valued at $334,000 after buying an additional 36 shares during the period. Compound Planning Inc. lifted its holdings in shares of Talen Energy by 4.7% in the 4th quarter. Compound Planning Inc. now owns 841 shares of the utilities provider's stock valued at $315,000 after buying an additional 38 shares during the period. Northwestern Mutual Investment Management Company LLC boosted its stake in shares of Talen Energy by 0.4% in the fourth quarter. Northwestern Mutual Investment Management Company LLC now owns 10,223 shares of the utilities provider's stock valued at $3,832,000 after buying an additional 39 shares in the last quarter. Finally, Values First Advisors Inc. grew its holdings in Talen Energy by 4.7% during the first quarter. Values First Advisors Inc. now owns 979 shares of the utilities provider's stock worth $312,000 after acquiring an additional 44 shares during the period. 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).

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