NRG Energy (NYSE:NRG) Shares Down 8.7% Following Weak Earnings

NRG Energy, Inc. (NYSE:NRG) shares fell 8.7% on Tuesday following a weaker than expected earnings announcement. The company traded as low as $128.02 and last traded at $126.4360. Approximately 442,596 shares were traded during mid-day trading, a decline of 83% from the average session volume of 2,603,033 shares. The stock had previously closed at $138.47.

The utilities provider reported $1.49 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.69 by ($0.20). NRG Energy had a net margin of 0.74% and a return on equity of 70.67%. NRG Energy’s quarterly revenue was up 11.0% compared to the same quarter last year. During the same period last year, the business posted $1.73 EPS. NRG Energy has set its FY 2026 guidance at 7.900-9.900 EPS.

NRG Energy Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, August 17th. Shareholders of record on Monday, August 3rd will be issued a dividend of $0.475 per share. This represents a $1.90 annualized dividend and a yield of 1.5%. The ex-dividend date of this dividend is Monday, August 3rd. NRG Energy’s payout ratio is currently 223.53%.

Analyst Upgrades and Downgrades

NRG has been the subject of several analyst reports. Williams Trading set a $184.00 price target on shares of NRG Energy in a research report on Monday, July 6th. UBS Group cut their price objective on shares of NRG Energy from $221.00 to $216.00 and set a “buy” rating on the stock in a report on Tuesday, July 28th. Scotiabank lifted their target price on shares of NRG Energy from $223.00 to $226.00 and gave the stock an “outperform” rating in a report on Wednesday, July 15th. BMO Capital Markets dropped their target price on shares of NRG Energy from $213.00 to $212.00 and set a “market perform” rating for the company in a research report on Tuesday, July 28th. Finally, Siebert Williams Shank initiated coverage on NRG Energy in a research report on Monday, July 6th. They issued a “buy” rating and a $184.00 price target on the stock. One analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and four have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $201.79.

Insiders Place Their Bets

In related news, VP Virginia Kinney sold 20,000 shares of NRG Energy stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $127.52, for a total transaction of $2,550,400.00. Following the transaction, the vice president owned 45,111 shares of the company’s stock, valued at $5,752,554.72. This trade represents a 30.72% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.43% of the stock is owned by insiders.

Institutional Investors Weigh In On NRG Energy

Hedge funds have recently bought and sold shares of the company. Victory Capital Management Inc. raised its position in shares of NRG Energy by 178.1% during the fourth quarter. Victory Capital Management Inc. now owns 7,676,513 shares of the utilities provider’s stock worth $1,222,409,000 after purchasing an additional 4,916,653 shares during the period. Capital World Investors acquired a new position in shares of NRG Energy in the 4th quarter valued at approximately $305,817,000. Boston Partners grew its position in shares of NRG Energy by 124.1% in the 4th quarter. Boston Partners now owns 1,808,814 shares of the utilities provider’s stock valued at $287,469,000 after purchasing an additional 1,001,672 shares during the period. Worldquant Millennium Advisors LLC increased its stake in NRG Energy by 492.5% during the 2nd quarter. Worldquant Millennium Advisors LLC now owns 883,781 shares of the utilities provider’s stock worth $141,918,000 after purchasing an additional 734,624 shares in the last quarter. Finally, Merewether Investment Management LP acquired a new stake in NRG Energy during the 3rd quarter worth approximately $85,951,000. 97.72% of the stock is currently owned by institutional investors and hedge funds.

NRG Energy Stock Performance

The company has a debt-to-equity ratio of 4.68, a current ratio of 0.84 and a quick ratio of 0.78. The stock’s 50 day simple moving average is $135.65 and its two-hundred day simple moving average is $147.98. The stock has a market cap of $26.41 billion, a P/E ratio of 147.28 and a beta of 1.22.

NRG Energy Company Profile

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.