NRG Energy (NYSE:NRG) Reaches New 12-Month High – Should You Buy?

NRG Energy, Inc. (NYSE:NRG) reached a new 52-week high during mid-day trading on Friday . The stock traded as high as $164.47 and last traded at $162.56, with a volume of 220760 shares changing hands. The stock had previously closed at $161.54.

Analyst Ratings Changes

Several research analysts have issued reports on the company. Wall Street Zen raised NRG Energy from a “hold” rating to a “buy” rating in a report on Friday. Wells Fargo & Company upped their price target on NRG Energy from $165.00 to $200.00 and gave the company an “overweight” rating in a report on Tuesday, May 13th. The Goldman Sachs Group assumed coverage on NRG Energy in a report on Friday, April 4th. They issued a “buy” rating and a $129.00 price target on the stock. BMO Capital Markets reaffirmed a “market perform” rating and issued a $167.00 price target (up previously from $115.00) on shares of NRG Energy in a report on Wednesday, May 14th. Finally, Jefferies Financial Group upped their price target on NRG Energy from $113.00 to $132.00 and gave the company a “buy” rating in a report on Monday, May 5th. Two investment analysts have rated the stock with a hold rating, eight have assigned a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $151.80.

NRG Energy Stock Performance

The firm’s 50 day simple moving average is $141.87 and its 200-day simple moving average is $113.59. The company has a debt-to-equity ratio of 4.61, a quick ratio of 1.02 and a current ratio of 1.06. The company has a market capitalization of $31.83 billion, a price-to-earnings ratio of 26.26, a P/E/G ratio of 1.29 and a beta of 1.13.

NRG Energy (NYSE:NRG) last announced its earnings results on Monday, May 12th. The utilities provider reported $2.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.72 by $1.90. NRG Energy had a net margin of 4.66% and a return on equity of 73.78%. The company had revenue of $8.59 billion for the quarter, compared to the consensus estimate of $8.28 billion. During the same period in the previous year, the business earned $2.31 EPS. The company’s revenue was up 15.6% on a year-over-year basis. Analysts expect that NRG Energy, Inc. will post 6.36 EPS for the current year.

NRG Energy Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, May 15th. Stockholders of record on Thursday, May 1st were paid a $0.44 dividend. This represents a $1.76 dividend on an annualized basis and a dividend yield of 1.08%. The ex-dividend date was Thursday, May 1st. NRG Energy’s dividend payout ratio (DPR) is presently 28.39%.

Insider Transactions at NRG Energy

In other news, Director Kevin Howell sold 50,000 shares of the company’s stock in a transaction on Friday, May 30th. The shares were sold at an average price of $154.50, for a total value of $7,725,000.00. Following the transaction, the director now directly owns 55,427 shares of the company’s stock, valued at approximately $8,563,471.50. This represents a 47.43% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.86% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On NRG Energy

Hedge funds have recently modified their holdings of the stock. Goldman Sachs Group Inc. increased its position in NRG Energy by 468.4% during the first quarter. Goldman Sachs Group Inc. now owns 4,757,735 shares of the utilities provider’s stock worth $454,173,000 after buying an additional 6,049,247 shares during the last quarter. Amundi increased its position in NRG Energy by 772.5% during the first quarter. Amundi now owns 4,378,022 shares of the utilities provider’s stock worth $406,342,000 after buying an additional 3,876,235 shares during the last quarter. Boston Partners increased its position in NRG Energy by 169.5% during the first quarter. Boston Partners now owns 2,817,018 shares of the utilities provider’s stock worth $269,230,000 after buying an additional 1,771,829 shares during the last quarter. Nuveen LLC acquired a new position in NRG Energy during the first quarter worth $93,075,000. Finally, Appaloosa LP grew its position in shares of NRG Energy by 81.5% in the fourth quarter. Appaloosa LP now owns 1,815,000 shares of the utilities provider’s stock valued at $163,749,000 after purchasing an additional 815,180 shares during the last quarter. 97.72% of the stock is owned by institutional investors and hedge funds.

NRG Energy Company Profile

NRG Energy, Inc, together with its subsidiaries, operates as an energy and home services company in the United States and Canada. It operates through Texas; East; West/Services/Other; Vivint Smart Home; and Corporate Activities segments. The company produces and sells electricity generated using coal, oil, solar, and battery storage; natural gas; and a cloud-based home platform, including hardware, software, sales, installation, customer service, technical support, and professional monitoring solutions.