Zacks Reiterates Neutral Rating for NRG Energy (NRG)
NRG Energy (NYSE:NRG)‘s stock had its “neutral” rating restated by Zacks in a research note issued to investors on Friday. They currently have a $31.00 price objective on the stock. Zacks‘s price objective suggests a potential upside of 3.92% from the stock’s previous close.
Zacks’ analyst wrote, “NRG Energy continues to report in red as rising expenses are continuously eating the company’s margins. In addition increase share outstanding is diluting earnings. NRG Energy posted strong revenues in second-quarter 2014 primarily on the back of growth in retail customer counts primarily as a result of strategic acquisitions, and higher sales volumes at the thermal business. We believe NRG Energy’s focus on expanding renewable assets and optimization of power generation capacity will likely boost its future performance. The company plans to reorganize its existing operations and focus more on the high growth segments. Post reorganization NRG Energy will have three main businesses, all aiming to improve quality and reliability of services offered by the company. However, stringent environmental regulations and disruption in fuel supply are causes of concern. Thus, we maintain our Neutral recommendation.”
Several other analysts have also recently commented on the stock. Analysts at Tigress Financial initiated coverage on shares of NRG Energy in a research note on Friday. They set a “neutral” rating on the stock. Separately, analysts at Jefferies Group reiterated a “buy” rating on shares of NRG Energy in a research note on Friday. They now have a $37.00 price target on the stock, down previously from $38.00. Finally, analysts at Goldman Sachs reiterated a “conviction-buy” rating on shares of NRG Energy in a research note on Monday, July 28th. Five investment analysts have rated the stock with a hold rating, four have assigned a buy rating and one has issued a strong buy rating to the company. The stock has a consensus rating of “Buy” and a consensus target price of $35.63.
NRG Energy (NYSE:NRG) traded down 1.27% on Friday, hitting $29.45. 3,218,742 shares of the company’s stock traded hands. NRG Energy has a one year low of $25.24 and a one year high of $38.09. The stock’s 50-day moving average is $33.67 and its 200-day moving average is $32.10. The company’s market cap is $9.932 billion. NRG Energy also was the target of unusually large options trading on Wednesday. Stock investors bought 1,359 put options on the stock. This is an increase of approximately 102% compared to the typical daily volume of 672 put options.
NRG Energy (NYSE:NRG) last released its earnings data on Thursday, August 7th. The company reported ($0.30) earnings per share for the quarter, missing the analysts’ consensus estimate of $0.15 by $0.45. The company had revenue of $3.62 billion for the quarter, compared to the consensus estimate of $2.50 billion. During the same quarter last year, the company posted $0.37 earnings per share. NRG Energy’s revenue was up 23.6% compared to the same quarter last year. Analysts expect that NRG Energy will post $2.18 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Friday, August 15th. Shareholders of record on Friday, August 1st will be paid a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a dividend yield of 1.88%. The ex-dividend date is Wednesday, July 30th.
NRG Energy, Inc (NYSE:NRG) is an integrated wholesale power generation and retail electricity company in the United States.
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