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

NRG Energy (NYSE:NRG) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued 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. Loss in value of NRG Energy’s shares in last month was narrower than the loss from the industry. 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.”

Several other analysts have also issued reports on NRG. SunTrust Banks reiterated a “hold” rating and set a $25.00 target price on shares of NRG Energy in a report on Friday, October 20th. Bank of America started coverage on NRG Energy in a report on Tuesday, October 24th. They set a “buy” rating and a $31.00 target price on the stock. Finally, ValuEngine lowered NRG Energy from a “strong-buy” rating to a “buy” rating in a report on Friday, October 27th. One analyst has rated the stock with a sell rating, two have issued a hold rating and eight have issued a buy rating to the stock. NRG Energy has a consensus rating of “Buy” and a consensus price target of $24.67.

NRG Energy (NYSE:NRG) traded down $0.45 on Wednesday, reaching $28.72. The company had a trading volume of 3,402,500 shares, compared to its average volume of 6,481,533. NRG Energy has a fifty-two week low of $13.24 and a fifty-two week high of $29.78. The company has a market capitalization of $9,090.00, a price-to-earnings ratio of -11.40 and a beta of 1.29. The company has a quick ratio of 1.11, a current ratio of 1.28 and a debt-to-equity ratio of 4.24.

NRG Energy (NYSE:NRG) last released its earnings results on Thursday, November 2nd. The utilities provider reported $0.61 earnings per share (EPS) for the quarter, missing the 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 company had revenue of $3.05 billion for the quarter, compared to the consensus estimate of $3.28 billion. During the same quarter in the previous year, the company posted $1.27 EPS. The business’s revenue was down 10.9% on a year-over-year basis. equities research analysts anticipate that NRG Energy will post 0.56 earnings per share for the current year.

In other NRG Energy news, Director Barry T. Smitherman purchased 2,541 shares of the stock in a transaction on Monday, November 6th. The shares were purchased at an average price of $28.38 per share, with a total value of $72,113.58. Following the completion of the transaction, the director now directly owns 49,000 shares in the company, valued at $1,390,620. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.31% of the stock is owned by insiders.

A number of hedge funds and other institutional investors have recently made changes to their positions in NRG. Sentry Investment Management LLC grew its position in shares of NRG Energy by 1.1% in the second quarter. Sentry Investment Management LLC now owns 21,736 shares of the utilities provider’s stock valued at $374,000 after purchasing an additional 243 shares during the last quarter. Thrivent Financial For Lutherans grew its position 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. PNC Financial Services Group Inc. grew its position in NRG Energy by 6.1% during the second quarter. PNC Financial Services Group Inc. now owns 21,991 shares of the utilities provider’s stock worth $379,000 after buying an additional 1,267 shares in the last quarter. Norinchukin Bank The grew its position in NRG Energy by 6.8% during the second quarter. Norinchukin Bank The now owns 21,935 shares of the utilities provider’s stock worth $378,000 after buying an additional 1,403 shares in the last quarter. Finally, Bridgewater Associates LP grew its position in NRG Energy by 7.9% during the second quarter. Bridgewater Associates LP now owns 20,587 shares of the utilities provider’s stock worth $355,000 after buying an additional 1,516 shares in the last quarter. 97.25% of the stock is currently owned by hedge funds and other institutional investors.

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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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