Talen Energy (NASDAQ:TLN) Shares Gap Down – What’s Next?

Talen Energy Corporation (NASDAQ:TLN) shares gapped down prior to trading on Friday . The stock had previously closed at $419.07, but opened at $389.62. Talen Energy shares last traded at $379.3110, with a volume of 1,092,047 shares.

Talen Energy News Summary

Here are the key news stories impacting Talen Energy this week:

• Positive Sentiment: The company signed definitive agreements to acquire Waterford, Darby and Lawrenceburg (≈2.6 GW) for $3.45B; management says the deal is immediately accretive (>15% adjusted FCF per share through 2030E) and expands its PJM footprint for data-center demand. Talen Energy Continues Portfolio Expansion (GlobeNewswire)
• Positive Sentiment: Coverage and model revisions are bullish: a Zacks note flagged a recent surge and pointed to upward earnings-estimate revisions that could support further near-term gains. Talen Energy Soars 11.8% (Zacks)
• Positive Sentiment: Third-party summaries highlight projected cash-flow and deleveraging benefits (pro forma leverage target ~3.5x by YE 2026) and quantify expected accretion, supporting the market’s positive reaction. Quiver Quant summary
• Neutral Sentiment: M&A investor materials and the call/slideshow provide additional execution detail; useful for investors wanting to hear management’s integration and financing plan. M&A Call Transcript (Seeking Alpha) M&A Slideshow (Seeking Alpha)
• Neutral Sentiment: High-profile investor commentary (e.g., Jim Cramer) expressed interest in buying, which can influence retail flows but is an opinion rather than new fundamentals. Jim Cramer on Talen (MSN)
• Negative Sentiment: Financing and execution risks: the $3.45B price includes ~$2.55B cash (Talen plans to issue new debt) and ~$900M in stock to ECP (≈2.4M shares, ~5% pro forma), creating short-term leverage and dilution concerns until deleveraging occurs. Closing is subject to HSR and other regulatory approvals. Reuters deal summary
• Negative Sentiment: Longer-term risk: expansion into fossil gas improves near-term cash flow but increases exposure to fuel-price volatility and transition/regulatory risks that could affect valuation if market or policy conditions shift. MSN coverage of the deal

Wall Street Analysts Forecast Growth

A number of research firms have commented on TLN. Scotiabank assumed coverage on Talen Energy in a report on Monday, September 22nd. They set a “sector perform” rating and a $418.00 target price on the stock. Wells Fargo & Company dropped their target price on shares of Talen Energy from $453.00 to $445.00 and set an “overweight” rating on the stock in a report on Thursday, November 6th. JPMorgan Chase & Co. boosted their price objective on shares of Talen Energy from $432.00 to $442.00 and gave the company an “overweight” rating in a research report on Monday, October 20th. Barclays raised their target price on shares of Talen Energy from $439.00 to $457.00 and gave the stock an “overweight” rating in a report on Friday, January 9th. Finally, Zacks Research lowered Talen Energy from a “strong-buy” rating to a “hold” rating in a report on Thursday, September 18th. Thirteen research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, Talen Energy presently has a consensus rating of “Moderate Buy” and a consensus price target of $398.43.

Talen Energy Stock Down 7.9%

The firm has a market capitalization of $17.63 billion, a P/E ratio of 83.54, a PEG ratio of 0.59 and a beta of 1.97. The firm’s fifty day moving average price is $374.48 and its 200-day moving average price is $374.47. The company has a debt-to-equity ratio of 2.02, a current ratio of 2.29 and a quick ratio of 1.72.

Talen Energy (NASDAQ:TLN) last announced its quarterly earnings data on Wednesday, November 5th. The utilities provider reported $4.25 earnings per share for the quarter, beating the consensus estimate of $4.01 by $0.24. Talen Energy had a return on equity of 13.52% and a net margin of 9.83%.The business had revenue of $812.00 million during the quarter, compared to analyst estimates of $707.90 million. During the same quarter in the prior year, the firm posted $3.16 earnings per share. The company’s revenue was up 24.9% on a year-over-year basis. As a group, equities research analysts forecast that Talen Energy Corporation will post 15.94 earnings per share for the current year.

Hedge Funds Weigh In On Talen Energy

Hedge funds and other institutional investors have recently modified their holdings of the stock. Atlantic Union Bankshares Corp purchased a new position in shares of Talen Energy in the second quarter worth approximately $27,000. MAI Capital Management grew its position in Talen Energy by 115.7% during the 2nd quarter. MAI Capital Management now owns 110 shares of the utilities provider’s stock worth $32,000 after purchasing an additional 59 shares in the last quarter. Grove Bank & Trust purchased a new stake in shares of Talen Energy in the third quarter valued at $32,000. Assetmark Inc. boosted its position in shares of Talen Energy by 581.8% in the third quarter. Assetmark Inc. now owns 75 shares of the utilities provider’s stock worth $32,000 after buying an additional 64 shares during the period. Finally, Neo Ivy Capital Management purchased a new position in shares of Talen Energy during the third quarter valued at $34,000. 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).