Traders Purchase Large Volume of Call Options on NRG Energy (NYSE:NRG)

NRG Energy, Inc. (NYSE:NRG) was the recipient of unusually large options trading activity on Wednesday. Investors bought 11,342 call options on the company. This represents an increase of 375% compared to the typical volume of 2,386 call options.

Several research firms have recently commented on NRG. TheStreet raised shares of NRG Energy from a “c+” rating to a “b” rating in a report on Thursday, August 5th. Morgan Stanley boosted their price target on shares of NRG Energy from $47.00 to $48.00 and gave the stock an “overweight” rating in a research report on Thursday, August 19th. Two equities research analysts have rated the stock with a hold rating, three have issued a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Buy” and an average price target of $48.33.

NRG stock traded up $0.27 during mid-day trading on Wednesday, reaching $37.14. 55,351 shares of the stock traded hands, compared to its average volume of 2,846,970. The company has a debt-to-equity ratio of 1.95, a quick ratio of 1.18 and a current ratio of 1.21. NRG Energy has a one year low of $30.86 and a one year high of $46.10. The stock has a market capitalization of $9.09 billion, a PE ratio of 3.70, a PEG ratio of 0.12 and a beta of 0.84. The business has a 50-day moving average price of $39.81 and a two-hundred day moving average price of $39.74.

NRG Energy (NYSE:NRG) last posted its quarterly earnings data on Thursday, November 4th. The utilities provider reported $6.60 earnings per share for the quarter, beating the Zacks’ consensus estimate of $2.08 by $4.52. The business had revenue of $6.61 billion for the quarter, compared to analysts’ expectations of $3.85 billion. NRG Energy had a net margin of 11.11% and a return on equity of 80.94%. The business’s revenue was up 135.3% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.02 earnings per share. On average, equities analysts expect that NRG Energy will post 6.68 earnings per share for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which was paid on Monday, November 15th. Investors of record on Monday, November 1st were paid a $0.325 dividend. This represents a $1.30 dividend on an annualized basis and a yield of 3.50%. The ex-dividend date was Friday, October 29th. NRG Energy’s dividend payout ratio (DPR) is presently 13.04%.

In other NRG Energy news, VP Christopher Moser bought 1,911 shares of the business’s stock in a transaction that occurred on Monday, November 22nd. The stock was bought at an average cost of $36.63 per share, for a total transaction of $69,999.93. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 0.83% of the company’s stock.

Several hedge funds have recently added to or reduced their stakes in NRG. Pzena Investment Management LLC raised its position in shares of NRG Energy by 52.8% in the 2nd quarter. Pzena Investment Management LLC now owns 14,220,693 shares of the utilities provider’s stock valued at $573,094,000 after purchasing an additional 4,914,254 shares during the last quarter. Lyrical Asset Management LP raised its position in shares of NRG Energy by 53.7% in the 3rd quarter. Lyrical Asset Management LP now owns 5,922,268 shares of the utilities provider’s stock valued at $241,806,000 after purchasing an additional 2,068,235 shares during the last quarter. Luxor Capital Group LP increased its holdings in NRG Energy by 61.5% in the 2nd quarter. Luxor Capital Group LP now owns 2,867,204 shares of the utilities provider’s stock worth $115,548,000 after buying an additional 1,092,013 shares during the period. American Century Companies Inc. increased its holdings in NRG Energy by 205.1% in the 3rd quarter. American Century Companies Inc. now owns 800,037 shares of the utilities provider’s stock worth $32,666,000 after buying an additional 537,787 shares during the period. Finally, Bank of Nova Scotia increased its holdings in NRG Energy by 277.6% in the 2nd quarter. Bank of Nova Scotia now owns 714,711 shares of the utilities provider’s stock worth $28,803,000 after buying an additional 525,454 shares during the period. 97.91% of the stock is owned by institutional investors and hedge funds.

NRG Energy Company Profile

NRG Energy, Inc engages in the production, sale, and distribution of energy and energy services. It operates through the following segments: Generation, Retail, and Corporate. The Generation segment includes all power plant activities, domestic and international, as well as renewables. The Retail segment includes mass customers and business solutions, and other distributed and reliability products.

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