NRG Energy (NRG) Downgraded 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, January 3rd.

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.”

Several other equities analysts have also recently commented on the stock. ValuEngine cut shares of NRG Energy from a “buy” rating to a “hold” rating in a research report on Friday, December 1st. Bank of America started coverage on shares of NRG Energy in a research note on Tuesday, October 24th. They set a “buy” rating and a $31.00 price target for the company. Finally, SunTrust Banks restated a “hold” rating and set a $25.00 price target on shares of NRG Energy in a research note on Friday, October 20th. One analyst has rated the stock with a sell rating, two have issued a hold rating and eight have assigned a buy rating to the company’s stock. The stock presently has an average rating of “Buy” and a consensus price target of $24.67.

NRG Energy (NRG) traded up $0.37 during trading on Wednesday, hitting $28.61. 6,183,600 shares of the company’s stock traded hands, compared to its average volume of 6,039,237. NRG Energy has a 1 year low of $13.95 and a 1 year high of $29.78. The company has a debt-to-equity ratio of 4.24, a quick ratio of 1.11 and a current ratio of 1.28. The company has a market cap of $9,060.00, a PE ratio of -11.35 and a beta of 1.29.

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

In related news, Director Barry T. Smitherman purchased 2,541 shares of the firm’s stock in a transaction dated Monday, November 6th. The stock was bought at an average price of $28.38 per share, for a total transaction of $72,113.58. Following the purchase, the director now directly owns 49,000 shares in the company, valued at approximately $1,390,620. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 0.31% of the company’s stock.

A number of institutional investors have recently added to or reduced their stakes in NRG. Janus Henderson Group PLC grew its stake in NRG Energy by 42,970.1% in the 2nd quarter. Janus Henderson Group PLC now owns 5,517,278 shares of the utilities provider’s stock valued at $95,007,000 after buying an additional 5,504,468 shares in the last quarter. Prudential Financial Inc. grew its stake in NRG Energy by 202.6% in the 3rd quarter. Prudential Financial Inc. now owns 3,363,988 shares of the utilities provider’s stock valued at $86,086,000 after buying an additional 2,252,400 shares in the last quarter. Permian Investment Partners LP grew its stake in NRG Energy by 51.0% in the 2nd quarter. Permian Investment Partners LP now owns 5,938,024 shares of the utilities provider’s stock valued at $102,253,000 after buying an additional 2,005,094 shares in the last quarter. Dimensional Fund Advisors LP grew its stake in NRG Energy by 38.6% in the 2nd quarter. Dimensional Fund Advisors LP now owns 6,369,761 shares of the utilities provider’s stock valued at $109,682,000 after buying an additional 1,772,966 shares in the last quarter. Finally, Balyasny Asset Management LLC grew its stake in NRG Energy by 4,510.5% in the 2nd quarter. Balyasny Asset Management LLC now owns 1,671,181 shares of the utilities provider’s stock valued at $28,778,000 after buying an additional 1,634,934 shares in the last quarter. Institutional investors and hedge funds own 97.25% of the company’s stock.

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NRG Energy Company Profile

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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