Talen Energy (NASDAQ:TLN) Trading Down 10.1% - Here's Why

Key Points

• Talen Energy shares fell 10.1% to about $321 during Tuesday trading, with roughly 604,000 shares changing hands.
• The decline followed a disappointing quarterly report: Talen posted a $2.00 per-share loss versus expectations for $3.21 in earnings and revenue of $747 million, below the $832.81 million consensus estimate.
• Despite the selloff, analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $476.58—well above the current share price.

Shares of Talen Energy Corporation (NASDAQ:TLN - Get Free Report) fell 10.1% during mid-day trading on Tuesday . The stock traded as low as $322.00 and last traded at $321.0070. Approximately 603,950 shares traded hands during trading, a decline of 25% from the average session volume of 809,943 shares. The stock had previously closed at $356.92.

Analyst Ratings Changes

Several research firms recently commented on TLN. Susquehanna set a $449.00 price objective on shares of Talen Energy in a research report on Friday, August 7th. Scotiabank increased their target price on Talen Energy from $463.00 to $470.00 and gave the stock a "sector perform" rating in a report on Wednesday, July 15th. Raymond James Financial reiterated an "outperform" rating and set a $457.00 target price on shares of Talen Energy in a report on Monday, April 27th. The Goldman Sachs Group reissued a "buy" rating and issued a $509.00 price target on shares of Talen Energy in a research note on Monday, August 10th. Finally, Morgan Stanley reaffirmed an "overweight" rating and set a $508.00 price objective on shares of Talen Energy in a research report on Wednesday, June 24th. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $476.58.

Talen Energy Stock Down 10.3%

The stock's fifty day moving average price is $371.73 and its 200-day moving average price is $358.31. 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 company has a market capitalization of $15.35 billion, a price-to-earnings ratio of -77.00 and a beta of 1.90.

Talen Energy (NASDAQ:TLN - Get Free Report) last announced its earnings results on Wednesday, August 5th. The utilities provider reported ($2.00) EPS for the quarter, missing the consensus estimate of $3.21 by ($5.21). Talen Energy had a positive return on equity of 43.32% and a negative net margin of 5.38%.The business had revenue of $747.00 million for the quarter, compared to analyst estimates of $832.81 million. On average, sell-side analysts predict that Talen Energy Corporation will post 25.07 earnings per share for the current fiscal year.

Insider Activity at Talen Energy

In other news, Director Gizman I. Abbas sold 2,600 shares of the firm's stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $380.00, for a total value of $988,000.00. Following the completion of the transaction, the director owned 2,606 shares in the company, valued at $990,280. This trade represents a 49.94% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.78% of the stock is currently owned by corporate insiders.

Institutional Trading of Talen Energy

A number of hedge funds and other institutional investors have recently modified their holdings of TLN. Advisory Services Network LLC bought a new position in Talen Energy in the third quarter valued at approximately $35,000. Northwestern Mutual Wealth Management Co. raised its stake in shares of Talen Energy by 1,500.0% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 96 shares of the utilities provider's stock worth $36,000 after purchasing an additional 90 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in shares of Talen Energy during the 2nd quarter worth approximately $38,000. Migdal Insurance & Financial Holdings Ltd. acquired a new stake in shares of Talen Energy in the 4th quarter valued at approximately $39,000. Finally, Bessemer Group Inc. boosted its holdings in shares of Talen Energy by 404.0% in the 1st quarter. Bessemer Group Inc. now owns 126 shares of the utilities provider's stock valued at $41,000 after buying an additional 101 shares during the last quarter. Institutional investors and hedge funds own 0.38% of the company's stock.

Talen Energy Company Profile

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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