NRG Energy (NYSE:NRG) Releases Quarterly Earnings Results, Misses Expectations By $0.15 EPS

NRG Energy (NYSE:NRG) announced its quarterly earnings results on Tuesday. The utilities provider reported $1.04 EPS for the quarter, missing the consensus estimate of $1.19 by ($0.15), FiscalAI reports. NRG Energy had a net margin of 4.84% and a return on equity of 103.57%.

NRG Energy Stock Performance

NRG opened at $176.79 on Tuesday. The firm has a market capitalization of $37.95 billion, a PE ratio of 26.43 and a beta of 1.27. NRG Energy has a 52-week low of $79.57 and a 52-week high of $182.04. The business’s 50-day simple moving average is $157.19 and its 200 day simple moving average is $160.36. The company has a debt-to-equity ratio of 8.45, a quick ratio of 0.99 and a current ratio of 1.05.

NRG Energy Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, February 17th. Investors of record on Monday, February 2nd were given a $0.475 dividend. This is an increase from NRG Energy’s previous quarterly dividend of $0.44. This represents a $1.90 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date of this dividend was Monday, February 2nd. NRG Energy’s dividend payout ratio (DPR) is presently 28.40%.

NRG Energy announced that its board has initiated a stock repurchase program on Thursday, November 6th that authorizes the company to buyback $3.00 billion in outstanding shares. This buyback authorization authorizes the utilities provider to buy up to 9.2% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s board believes its stock is undervalued.

Insiders Place Their Bets

In other news, VP Brian Curci sold 46,976 shares of the business’s stock in a transaction dated Tuesday, January 6th. The shares were sold at an average price of $158.84, for a total transaction of $7,461,667.84. Following the transaction, the vice president directly owned 46,113 shares in the company, valued at $7,324,588.92. The trade was a 50.46% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, VP Robert J. Gaudette sold 45,000 shares of the business’s stock in a transaction that occurred on Tuesday, January 6th. The stock was sold at an average price of $158.76, for a total value of $7,144,200.00. Following the transaction, the vice president directly owned 63,920 shares in the company, valued at approximately $10,147,939.20. This trade represents a 41.31% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 172,556 shares of company stock valued at $27,550,446. 0.61% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On NRG Energy

Several large investors have recently modified their holdings of NRG. Motiv8 Investments LLC bought a new position in shares of NRG Energy during the fourth quarter worth approximately $27,000. DV Equities LLC acquired a new position in shares of NRG Energy during the 4th quarter worth $43,000. BOKF NA lifted its holdings in shares of NRG Energy by 3,714.3% in the third quarter. BOKF NA now owns 267 shares of the utilities provider’s stock worth $43,000 after acquiring an additional 260 shares during the last quarter. Beaird Harris Wealth Management LLC lifted its stake in NRG Energy by 1,970.6% in the 3rd quarter. Beaird Harris Wealth Management LLC now owns 352 shares of the utilities provider’s stock valued at $57,000 after purchasing an additional 335 shares during the last quarter. Finally, Prosperity Bancshares Inc acquired a new position in shares of NRG Energy during the fourth quarter worth $64,000. 97.72% of the stock is owned by institutional investors.

Analyst Ratings Changes

Several equities analysts recently issued reports on NRG shares. Jefferies Financial Group cut their price target on shares of NRG Energy from $198.00 to $181.00 and set a “buy” rating for the company in a report on Tuesday, January 27th. Raymond James Financial reiterated a “strong-buy” rating and issued a $225.00 price target on shares of NRG Energy in a report on Monday. Wells Fargo & Company raised their price objective on shares of NRG Energy from $202.00 to $206.00 and gave the company an “overweight” rating in a research note on Tuesday, January 20th. Weiss Ratings restated a “buy (b)” rating on shares of NRG Energy in a research report on Monday, December 29th. Finally, UBS Group started coverage on shares of NRG Energy in a research report on Tuesday, December 9th. They issued a “buy” rating and a $211.00 price objective for the company. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, one has given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, NRG Energy currently has a consensus rating of “Moderate Buy” and an average price target of $188.45.

About NRG Energy

NRG Energy (NYSE: NRG) is a U.S.-based integrated power company headquartered in Houston, Texas. The company develops, owns and operates a diversified portfolio of power generation assets and participates in wholesale and retail energy markets. NRG supplies electricity to utilities, commercial and industrial customers, and retail consumers, while also providing energy-related products and services designed to manage consumption and support reliability.

NRG’s generation mix includes conventional thermal plants as well as renewable and distributed energy resources.