NRG Energy (NRG) Lowered to Strong Sell at Zacks Investment Research

NRG Energy (NYSE:NRG) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research report issued to clients and investors on Wednesday.

According to Zacks, “NRG Energy is subject to stringent environmental regulations and intense competition in the wholesale power markets. A substantial amount of electricity still being produced from coal, remains a main cause of concern. Adverse weather conditions and risks relating to its international operation could impact performance of the company. However, NRG Energy’s Transformation Plan is well poised with cost-saving measures, debt-reduction plans and expansion of renewable operations, which will drive growth. The company does not depend one single customer to generate revenues, therefore, migration of customers to other operators have lesser impact on its performance. Shares of NRG Energy have outperformed the industry in the last six months.”

NRG has been the topic of a number of other research reports. SunTrust Banks reissued a “hold” rating and issued a $25.00 price objective on shares of NRG Energy in a research report on Friday, October 20th. ValuEngine lowered shares of NRG Energy from a “strong-buy” rating to a “buy” rating in a research report on Friday, October 27th. Finally, Bank of America began coverage on shares of NRG Energy in a research report on Tuesday, October 24th. They issued a “buy” rating and a $31.00 price objective on the stock. One research analyst has rated the stock with a sell rating, two have assigned a hold rating and eight have issued a buy rating to the company. The company has a consensus rating of “Buy” and a consensus price target of $24.67.

NRG Energy (NYSE:NRG) traded up $0.42 during trading on Wednesday, hitting $28.90. 6,522,600 shares of the stock traded hands, compared to its average volume of 5,705,450. The company has a debt-to-equity ratio of 4.24, a current ratio of 1.28 and a quick ratio of 1.11. The firm has a market capitalization of $9,140.00, a PE ratio of -11.47 and a beta of 1.29. NRG Energy has a 12 month low of $12.19 and a 12 month high of $29.78.

NRG Energy (NYSE:NRG) last announced its quarterly earnings data on Thursday, November 2nd. The utilities provider reported $0.61 EPS for the quarter, missing the Zacks’ consensus estimate of $1.12 by ($0.51). The business had revenue of $3.05 billion during the quarter, compared to the consensus estimate of $3.28 billion. NRG Energy had a positive return on equity of 8.82% and a negative net margin of 13.48%. The business’s revenue for the quarter was down 10.9% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.27 EPS. equities research analysts forecast that NRG Energy will post 0.56 EPS for the current fiscal year.

In other news, Director Barry T. Smitherman purchased 2,541 shares of the company’s stock in a transaction on Monday, November 6th. The shares were purchased at an average cost of $28.38 per share, with a total value of $72,113.58. Following the completion of the transaction, the director now owns 49,000 shares of the company’s stock, valued at approximately $1,390,620. The transaction was disclosed in a filing with the SEC, which is available through this link. Corporate insiders own 0.31% of the company’s stock.

A number of hedge funds and other institutional investors have recently bought and sold shares of NRG. Tiedemann Wealth Management LLC increased its holdings in shares of NRG Energy by 49.3% in the third quarter. Tiedemann Wealth Management LLC now owns 18,199 shares of the utilities provider’s stock valued at $101,000 after purchasing an additional 6,011 shares during the last quarter. Invictus RG acquired a new position in shares of NRG Energy in the third quarter valued at $110,000. Fieldpoint Private Securities LLC acquired a new position in shares of NRG Energy in the second quarter valued at $112,000. Parkwood LLC acquired a new position in shares of NRG Energy in the third quarter valued at $205,000. Finally, Thrivent Financial For Lutherans increased its holdings in shares of NRG Energy by 4.4% in the second quarter. Thrivent Financial For Lutherans now owns 12,070 shares of the utilities provider’s stock valued at $208,000 after purchasing an additional 510 shares during the last quarter. 97.25% of the stock is currently owned by hedge funds and other institutional investors.

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About NRG Energy

NRG Energy, Inc (NRG) is an integrated power company. The Company is engaged in producing, selling and delivering electricity and related products and services in various markets in the United States. The Company’s segments include Generation, Retail, Renewables, NRG Yield, Inc (NRG Yield) and Corporate activities.

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