NRG Energy (NYSE:NRG) Stock Jumps 8.3% – Here’s What Happened

NRG Energy, Inc. (NYSE:NRG) shares shot up 8.3% during trading on Tuesday. The stock traded as high as $104.23 and last traded at $104.8120. 649,169 shares were traded during mid-day trading, a decline of 76% from the average daily volume of 2,703,820 shares. The stock had previously closed at $96.80.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on the company. Morgan Stanley lowered their price target on NRG Energy from $162.00 to $159.00 and set an “equal weight” rating on the stock in a research report on Friday, September 18th. Siebert Williams Shank began coverage on NRG Energy in a research note on Monday, July 6th. They set a “buy” rating and a $184.00 target price for the company. BNP Paribas Exane set a $221.00 price target on NRG Energy in a research report on Wednesday, August 19th. Williams Trading set a $184.00 price target on NRG Energy in a report on Monday, July 6th. Finally, UBS Group reduced their price objective on NRG Energy from $221.00 to $216.00 and set a “buy” rating for the company in a research report on Tuesday, July 28th. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, NRG Energy has a consensus rating of “Moderate Buy” and an average target price of $198.21.

NRG Energy Price Performance

The company has a 50-day moving average of $112.98 and a 200 day moving average of $132.46. The company has a debt-to-equity ratio of 5.17, a quick ratio of 0.89 and a current ratio of 0.97. The firm has a market cap of $22.01 billion, a P/E ratio of 27.62 and a beta of 1.17.

NRG Energy (NYSE:NRG) last announced its earnings results on Tuesday, August 4th. The utilities provider reported $1.49 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.69 by ($0.20). The firm had revenue of $7.48 billion for the quarter, compared to analyst estimates of $7.31 billion. NRG Energy had a return on equity of 52.95% and a net margin of 2.56%.The company’s revenue for the quarter was up 11.0% compared to the same quarter last year. During the same quarter last year, the business earned $1.73 EPS. NRG Energy has set its FY 2026 guidance at 7.900-9.900 EPS. On average, sell-side analysts anticipate that NRG Energy, Inc. will post 8.61 EPS for the current year.

NRG Energy Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, August 17th. Investors of record on Monday, August 3rd were given a $0.4750 dividend. This represents a $1.90 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date was Monday, August 3rd. NRG Energy’s dividend payout ratio (DPR) is presently 50.26%.

Insiders Place Their Bets

In other news, CAO Gerald Alfred Spencer sold 1,580 shares of the firm’s stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $120.93, for a total transaction of $191,069.40. Following the sale, the chief accounting officer owned 6,213 shares of the company’s stock, valued at $751,338.09. This trade represents a 20.27% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.43% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On NRG Energy

A number of large investors have recently added to or reduced their stakes in the company. MV Capital Management Inc. bought a new position in shares of NRG Energy during the fourth quarter worth about $27,000. EMC Capital Management acquired a new position in NRG Energy during the 4th quarter worth approximately $30,000. Burkett Financial Services LLC bought a new position in shares of NRG Energy during the 3rd quarter worth approximately $30,000. SHP Wealth Management acquired a new stake in shares of NRG Energy in the fourth quarter valued at approximately $32,000. Finally, Hilton Head Capital Partners LLC lifted its position in shares of NRG Energy by 50.0% in the first quarter. Hilton Head Capital Partners LLC now owns 219 shares of the utilities provider’s stock worth $32,000 after purchasing an additional 73 shares in the last quarter. Institutional investors own 97.72% of the company’s stock.

About NRG Energy

NRG Energy, Inc (NYSE:NRG) is an integrated power and home services company headquartered in Houston, Texas. The company produces and sells electricity and natural gas and provides energy-related products and services to residential, commercial, industrial and institutional customers.

NRG operates power generation assets that use a range of fuel sources, including natural gas, coal, nuclear power and renewable energy. It also develops and supports technologies such as battery storage and offers electricity, natural gas, renewable energy and energy-management services through retail brands including Reliant, Direct Energy, Green Mountain Energy and other regional providers.

In addition to its energy business, NRG provides smart-home, security, automation and related services through its Vivint operations.