Talen Energy (NASDAQ:TLN) Shares Break Above 200 Day Moving Average on Disappointing Earnings

Key Points

• Talen Energy shares rose 7.3% and moved above their 200-day average, reaching $365.92 intraday and last trading at $357.28.
• Quarterly EPS of $2.88 missed analysts’ $8.33 estimate, while revenue of $1.33 billion topped the $1.30 billion consensus.
• Analysts’ consensus rating is “Moderate Buy,” with an average price target of $458.69; 12 analysts rate the stock Buy, two Hold, and two Sell.

Shares of Talen Energy Corporation (NASDAQ:TLN - Get Free Report) crossed above its two hundred day moving average during trading on Tuesday following a stronger than expected earnings report. The stock has a two hundred day moving average of $349.27 and traded as high as $365.92. Talen Energy shares last traded at $357.28, with a volume of 2,188,293 shares.

The utilities provider reported $2.88 earnings per share for the quarter, missing analysts' consensus estimates of $8.33 by ($5.45). Talen Energy had a positive return on equity of 43.32% and a negative net margin of 5.38%. The firm had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.30 billion. During the same quarter in the previous year, the firm earned $4.25 EPS.

Analysts Set New Price Targets

TLN has been the subject of several recent analyst reports. Bank of America reaffirmed a "buy" rating on shares of Talen Energy in a research note on Tuesday, October 27th. Mizuho started coverage on shares of Talen Energy in a research report on Monday, August 24th. They set an "outperform" rating and a $405.00 price target on the stock. Morgan Stanley decreased their price target on shares of Talen Energy from $514.00 to $504.00 and set an "overweight" rating for the company in a report on Wednesday, October 21st. BNP Paribas Exane reissued an "outperform" rating and issued a $560.00 price target on shares of Talen Energy in a report on Wednesday, August 19th. Finally, Weiss Ratings cut shares of Talen Energy from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Tuesday, August 18th. Twelve research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, Talen Energy presently has an average rating of "Moderate Buy" and a consensus target price of $458.69.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Continuum Advisory LLC purchased a new position in Talen Energy in the 2nd quarter worth approximately $33,000. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in Talen Energy in the 2nd quarter valued at approximately $38,000. Grove Bank & Trust boosted its stake in Talen Energy by 40.5% during the 3rd quarter. Grove Bank & Trust now owns 104 shares of the utilities provider's stock valued at $33,000 after purchasing an additional 30 shares during the last quarter. Northwestern Mutual Wealth Management Co. purchased a new stake in Talen Energy during the 2nd quarter valued at $41,000. Finally, Silvant Capital Management LLC purchased a new stake in Talen Energy during the 2nd quarter valued at $42,000. Institutional investors own 0.38% of the company's stock.

Talen Energy Trading Up 7.3%

The firm has a market cap of $17.12 billion, a P/E ratio of -85.68 and a beta of 1.77. The stock has a fifty day simple moving average of $325.95 and a 200 day simple moving average of $349.27. The company has a debt-to-equity ratio of 5.82, a quick ratio of 0.55 and a current ratio of 0.78.

About Talen Energy

Talen Energy Corporation NASDAQ: TLN is an independent power producer that owns and operates power generation and energy infrastructure assets in the United States. The company sells electricity, capacity and ancillary services into wholesale power markets, serving utilities, commercial and industrial customers, and other energy market participants.

Talen's generation portfolio includes nuclear, natural gas and other power assets. Its Susquehanna nuclear power station in Pennsylvania is a central part of the company's operations, and Talen has also pursued energy infrastructure projects designed to support large-scale electricity users, including data centers and other technology-related facilities.

The company was formed in 2015 through the separation of competitive power generation assets from PPL Corporation.

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