NRG Energy (NRG) Cut to Hold at Zacks Investment Research

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NRG Energy (NYSE:NRG) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a report issued on Tuesday, September 18th.

According to Zacks, “In a year's time, NRG Energy’s shares have gained against a decline of its industry.  NRG Energy continues to gain from its three years Transformation Plan launched in July 2017. NRG Energy’s $1-billion share buyback program will raise its shareholders’ value and the debt reduction plan will lower interest expenses, boosting margins. The wide customer base provides an added advantage to the company. NRG Energy is making strategic acquisitions via divesting non-core assets. Its cost-saving plans are going to contribute to strong performance over the long term. However, NRG Energy is subject to stringent environmental regulations and intense competition in the wholesale power markets. The unplanned outages in its old facilities could impact the performance of the company.”

Several other research firms have also recently issued reports on NRG. Bank of America began coverage on shares of NRG Energy in a research report on Thursday, May 24th. They set a “buy” rating and a $37.00 price objective for the company. Citigroup upgraded shares of NRG Energy from a “neutral” rating to a “buy” rating and set a $38.00 price objective for the company in a research report on Monday, August 6th. One equities research analyst has rated the stock with a sell rating, one has given a hold rating and five have assigned a buy rating to the company’s stock. The company presently has a consensus rating of “Buy” and a consensus price target of $37.00.

NYSE NRG traded up $0.39 during mid-day trading on Tuesday, reaching $36.37. 3,924,523 shares of the stock were exchanged, compared to its average volume of 4,996,792. NRG Energy has a 1 year low of $23.75 and a 1 year high of $38.25. The company has a market capitalization of $11.35 billion, a PE ratio of 33.37 and a beta of 1.05. The company has a debt-to-equity ratio of 7.16, a quick ratio of 1.17 and a current ratio of 1.30.

NRG Energy (NYSE:NRG) last posted its quarterly earnings data on Thursday, August 2nd. The utilities provider reported $0.31 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.86 by ($0.55). The company had revenue of $2.92 billion for the quarter, compared to analysts’ expectations of $2.72 billion. NRG Energy had a negative net margin of 9.30% and a positive return on equity of 29.44%. The business’s revenue for the quarter was up 8.2% on a year-over-year basis. During the same period in the previous year, the business earned $0.36 earnings per share. On average, equities analysts expect that NRG Energy will post 3.84 EPS for the current year.

In other news, EVP Christopher Moser sold 43,975 shares of the firm’s stock in a transaction that occurred on Monday, September 10th. The shares were sold at an average price of $35.11, for a total value of $1,543,962.25. Following the completion of the transaction, the executive vice president now owns 61,075 shares of the company’s stock, valued at $2,144,343.25. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, SVP David Callen sold 9,200 shares of the firm’s stock in a transaction that occurred on Monday, August 6th. The shares were sold at an average price of $33.21, for a total transaction of $305,532.00. Following the completion of the transaction, the senior vice president now directly owns 39,759 shares of the company’s stock, valued at approximately $1,320,396.39. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 92,975 shares of company stock valued at $3,265,286. 0.38% of the stock is currently owned by insiders.

Hedge funds and other institutional investors have recently bought and sold shares of the company. Toronto Dominion Bank lifted its stake in NRG Energy by 27.0% in the first quarter. Toronto Dominion Bank now owns 142,006 shares of the utilities provider’s stock worth $4,335,000 after acquiring an additional 30,158 shares during the last quarter. Bowling Portfolio Management LLC purchased a new position in NRG Energy in the second quarter worth approximately $1,099,000. MUFG Securities EMEA plc purchased a new position in NRG Energy in the second quarter worth approximately $10,553,000. Zacks Investment Management purchased a new position in NRG Energy in the second quarter worth approximately $1,006,000. Finally, Covalis Capital LLP purchased a new position in NRG Energy in the second quarter worth approximately $3,274,000. 98.92% of the stock is owned by institutional investors and hedge funds.

About NRG Energy

NRG Energy, Inc, together with its subsidiaries, operates as an integrated power company in the United States. The company is involved in the generation of electricity using fossil fuel and nuclear sources. The company provides electricity to 2.9 million residential, commercial, and industrial consumers; system power, distributed generation, solar and wind products, backup generation, storage and distributed solar, demand response, energy efficiency, and on-site energy solutions; and carbon management and specialty services.

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