NRG Energy (NYSE:NRG) Sees Unusually-High Trading Volume – Here’s Why

by · The Cerbat Gem

NRG Energy, Inc. (NYSE:NRG – Get Free Report) shares saw an uptick in trading volume on Tuesday . 4,604,985 shares were traded during trading, an increase of 116% from the previous session’s volume of 2,129,213 shares.The stock last traded at $158.7770 and had previously closed at $175.58.

Analyst Ratings Changes

Several analysts recently issued reports on NRG shares. Raymond James Financial reaffirmed a “strong-buy” rating and set a $225.00 price objective on shares of NRG Energy in a report on Monday, February 23rd. Zacks Research raised shares of NRG Energy from a “strong sell” rating to a “hold” rating in a research report on Monday, February 23rd. BMO Capital Markets raised their price target on NRG Energy from $185.00 to $195.00 and gave the company a “market perform” rating in a research report on Friday, November 7th. Morgan Stanley set a $153.00 price objective on NRG Energy in a research note on Tuesday, February 17th. Finally, Wells Fargo & Company boosted their price objective on NRG Energy from $202.00 to $206.00 and gave the stock an “overweight” rating in a research report on Tuesday, January 20th. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $190.67.

Check Out Our Latest Stock Report on NRG Energy

NRG Energy Trading Down 6.9%

The company has a debt-to-equity ratio of 15.92, a current ratio of 1.64 and a quick ratio of 1.58. The business has a 50-day simple moving average of $159.73 and a two-hundred day simple moving average of $161.30. The stock has a market cap of $35.10 billion, a price-to-earnings ratio of 41.50 and a beta of 1.26.

NRG Energy (NYSE:NRG – Get Free Report) last issued its earnings results on Tuesday, February 24th. The utilities provider reported $1.04 EPS for the quarter, missing the consensus estimate of $1.19 by ($0.15). NRG Energy had a return on equity of 109.48% and a net margin of 2.81%.The business had revenue of $7.75 billion for the quarter, compared to the consensus estimate of $6.68 billion. During the same quarter in the prior year, the firm posted $1.56 earnings per share. The business’s revenue was up 13.7% compared to the same quarter last year. Equities analysts forecast that NRG Energy, Inc. will post 6.36 EPS for the current fiscal year.

NRG Energy Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, February 17th. Investors of record on Monday, February 2nd were issued a dividend of $0.475 per share. This represents a $1.90 annualized dividend and a dividend yield of 1.2%. The ex-dividend date of this dividend was Monday, February 2nd. This is a positive change from NRG Energy’s previous quarterly dividend of $0.44. NRG Energy’s payout ratio is presently 48.22%.

NRG Energy announced that its Board of Directors has initiated a stock buyback program on Thursday, November 6th that authorizes the company to buyback $3.00 billion in shares. This buyback authorization authorizes the utilities provider to repurchase up to 9.2% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s leadership believes its stock is undervalued.

Insider Activity

In other NRG Energy news, CFO Bruce Chung sold 12,383 shares of NRG Energy stock in a transaction dated Wednesday, January 7th. The shares were sold at an average price of $156.56, for a total value of $1,938,682.48. Following the completion of the sale, the chief financial officer owned 79,147 shares in the company, valued at $12,391,254.32. The trade was a 13.53% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Brian Curci sold 60,580 shares of the business’s stock in a transaction that occurred on Monday, January 5th. The shares were sold at an average price of $161.71, for a total value of $9,796,391.80. Following the completion of the sale, the vice president owned 93,089 shares of the company’s stock, valued at approximately $15,053,422.19. This trade represents a 39.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 172,556 shares of company stock valued at $27,550,446. 0.61% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Brighton Jones LLC boosted its stake in NRG Energy by 41.8% in the fourth quarter. Brighton Jones LLC now owns 5,187 shares of the utilities provider’s stock valued at $468,000 after buying an additional 1,528 shares in the last quarter. Integrated Wealth Concepts LLC acquired a new position in NRG Energy during the 1st quarter worth about $323,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of NRG Energy by 7.3% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 20,257 shares of the utilities provider’s stock valued at $1,934,000 after buying an additional 1,381 shares during the last quarter. Woodline Partners LP increased its stake in shares of NRG Energy by 40.7% in the first quarter. Woodline Partners LP now owns 17,114 shares of the utilities provider’s stock valued at $1,634,000 after buying an additional 4,949 shares during the period. Finally, Keybank National Association OH bought a new position in shares of NRG Energy during the second quarter worth about $342,000. 97.72% of the stock is owned by institutional investors.

About NRG Energy

(Get Free Report)

NRG Energy (NYSE: NRG) is a U.S.-based integrated power company headquartered in Houston, Texas. The company develops, owns and operates a diversified portfolio of power generation assets and participates in wholesale and retail energy markets. NRG supplies electricity to utilities, commercial and industrial customers, and retail consumers, while also providing energy-related products and services designed to manage consumption and support reliability.

NRG’s generation mix includes conventional thermal plants as well as renewable and distributed energy resources.

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