NRG Energy (NYSE:NRG) Reaches New 1-Year High – Still a Buy?

Shares of NRG Energy, Inc. (NYSE:NRG) hit a new 52-week high during trading on Monday . The company traded as high as $182.04 and last traded at $179.6740, with a volume of 242494 shares trading hands. The stock had previously closed at $179.18.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on NRG. UBS Group assumed coverage on shares of NRG Energy in a report on Tuesday, December 9th. They set a “buy” rating and a $211.00 price objective for the company. Jefferies Financial Group cut their price target on NRG Energy from $198.00 to $181.00 and set a “buy” rating for the company in a research note on Tuesday, January 27th. Morgan Stanley set a $153.00 price objective on NRG Energy in a research note on Tuesday, February 17th. Wells Fargo & Company lifted their target price on NRG Energy from $202.00 to $206.00 and gave the company an “overweight” rating in a research report on Tuesday, January 20th. Finally, Zacks Research lowered NRG Energy from a “hold” rating to a “strong sell” rating in a research report on Friday, January 23rd. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, NRG Energy currently has a consensus rating of “Moderate Buy” and a consensus price target of $185.73.

NRG Energy Stock Down 1.3%

The company has a market capitalization of $37.97 billion, a PE ratio of 26.44 and a beta of 1.27. The stock’s fifty day moving average is $156.86 and its two-hundred day moving average is $160.19. The company has a current ratio of 1.05, a quick ratio of 0.99 and a debt-to-equity ratio of 8.45.

NRG Energy Increases Dividend

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

NRG Energy announced that its Board of Directors has initiated a stock buyback program on Thursday, November 6th that authorizes the company to buyback $3.00 billion in 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 generally an indication that the company’s leadership believes its stock is undervalued.

Insider Buying and Selling

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

Institutional Investors Weigh In On NRG Energy

Several institutional investors have recently added to or reduced their stakes in NRG. Victory Capital Management Inc. increased its stake in shares of NRG Energy by 178.1% in 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 in the last quarter. Capital World Investors purchased a new position in NRG Energy in the 4th quarter valued at approximately $305,817,000. Boston Partners raised its holdings in NRG Energy by 124.1% during the 4th quarter. Boston Partners now owns 1,808,814 shares of the utilities provider’s stock valued at $287,469,000 after acquiring an additional 1,001,672 shares during the period. Holocene Advisors LP lifted its position in shares of NRG Energy by 113.3% during the second quarter. Holocene Advisors LP now owns 1,444,271 shares of the utilities provider’s stock worth $231,921,000 after acquiring an additional 767,014 shares in the last quarter. Finally, Worldquant Millennium Advisors LLC boosted its holdings in shares of NRG Energy by 492.5% in the second quarter. Worldquant Millennium Advisors LLC now owns 883,781 shares of the utilities provider’s stock worth $141,918,000 after acquiring an additional 734,624 shares during the period. 97.72% of the stock is owned by hedge funds and other institutional investors.

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.