NRG Energy (NYSE:NRG) Sets New 1-Year High Following Analyst Upgrade

Shares of NRG Energy, Inc. (NYSE:NRG) reached a new 52-week high on Monday after Zacks Research upgraded the stock from a strong sell rating to a hold rating. The company traded as high as $182.04 and last traded at $179.6740, with a volume of 242494 shares traded. The stock had previously closed at $179.18.

Several other research firms also recently weighed in on NRG. Raymond James Financial restated a “strong-buy” rating and issued a $225.00 price target on shares of NRG Energy in a research note on Monday. Morgan Stanley set a $153.00 target price on NRG Energy in a report on Tuesday, February 17th. Jefferies Financial Group reduced their price target on NRG Energy from $198.00 to $181.00 and set a “buy” rating for the company in a report on Tuesday, January 27th. UBS Group began coverage on shares of NRG Energy in a research note on Tuesday, December 9th. They issued a “buy” rating and a $211.00 price target on the stock. Finally, Weiss Ratings restated a “buy (b)” rating on shares of NRG Energy in a research note on Monday, December 29th. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $188.45.

Insiders Place Their Bets

In other NRG Energy news, VP Brian Curci sold 60,580 shares of the company’s stock in a transaction dated Monday, January 5th. The shares were sold at an average price of $161.71, for a total transaction of $9,796,391.80. Following the transaction, the vice president owned 93,089 shares in the company, valued at approximately $15,053,422.19. This represents a 39.42% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Bruce Chung sold 12,383 shares of NRG Energy stock in a transaction that occurred on Wednesday, January 7th. The stock was sold at an average price of $156.56, for a total transaction of $1,938,682.48. Following the completion of the sale, the chief financial officer owned 79,147 shares of the company’s stock, valued at $12,391,254.32. This represents a 13.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 172,556 shares of company stock valued at $27,550,446. 0.61% of the stock is owned by insiders.

More NRG Energy News

Here are the key news stories impacting NRG Energy this week:

• Positive Sentiment: Company set a long‑term financial goal — NRG is targeting ~14% annual EPS growth through 2030 and says LS Power integration is outperforming, supporting the growth narrative that investors want to see. Read More.
• Positive Sentiment: NRG reported materially higher revenue and stronger operating cash flow for FY2025, and management boosted shareholder returns and issued 2026 guidance — items that underpin the rally. Read More.
• Positive Sentiment: Analyst sentiment improved: Zacks Research moved NRG from “strong sell” to “hold,” which removes a negative rating overhang and can support buying. Read More.
• Neutral Sentiment: Company released full FY2025 results showing adjusted EPS, adjusted EBITDA and free cash flow metrics that emphasize cash generation and expanded generation capacity (doubling of generation footprint). These are constructive longer‑term facts but need execution to matter. Read More.
• Neutral Sentiment: Investors are parsing the earnings call and slides for cadence and details (transcript and deck available); further color on margins, merchant exposure and data‑center/customer deals will drive near‑term trading. Read More.
• Negative Sentiment: Headline EPS comparisons are mixed: some wires reported an EPS beat on certain measures, while other summaries showed quarter EPS lower versus consensus or year‑ago levels — the mixed messaging (and a notable year‑over‑year EPS decline) is creating volatility. Read More.
• Negative Sentiment: Balance‑sheet and legacy merchant exposure remain watch‑items (high reported debt/equity and sensitivity to wholesale power markets), which could cap valuation if macro or Texas market headwinds reappear. (See company filings and slides for details.)

Hedge Funds Weigh In On NRG Energy

A number of institutional investors and hedge funds have recently modified their holdings of NRG. Aviva PLC boosted its stake in shares of NRG Energy by 9.7% during the 2nd quarter. Aviva PLC now owns 155,392 shares of the utilities provider’s stock worth $24,953,000 after acquiring an additional 13,757 shares during the last quarter. Reaves W H & Co. Inc. raised its holdings in NRG Energy by 122.8% in the 3rd quarter. Reaves W H & Co. Inc. now owns 295,471 shares of the utilities provider’s stock worth $47,852,000 after purchasing an additional 162,874 shares during the period. MidWestOne Financial Group Inc. lifted its position in NRG Energy by 58.1% during the third quarter. MidWestOne Financial Group Inc. now owns 19,992 shares of the utilities provider’s stock valued at $3,238,000 after purchasing an additional 7,344 shares in the last quarter. Border to Coast Pensions Partnership Ltd bought a new stake in NRG Energy during the third quarter valued at about $27,003,000. Finally, American Century Companies Inc. increased its position in NRG Energy by 68.2% in the second quarter. American Century Companies Inc. now owns 251,366 shares of the utilities provider’s stock worth $40,364,000 after buying an additional 101,922 shares in the last quarter. 97.72% of the stock is currently owned by hedge funds and other institutional investors.

NRG Energy Price Performance

The company has a quick ratio of 0.99, a current ratio of 1.05 and a debt-to-equity ratio of 8.45. The stock has a market cap of $39.64 billion, a P/E ratio of 27.60 and a beta of 1.27. The firm has a 50 day moving average price of $157.68 and a 200 day moving average price of $160.58.

NRG Energy (NYSE:NRG) last released its earnings results on Tuesday, February 24th. The utilities provider reported $1.04 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.19 by ($0.15). The firm had revenue of $7.75 billion during the quarter, compared to analysts’ expectations of $6.68 billion. NRG Energy had a return on equity of 103.57% and a net margin of 4.84%.The company’s revenue was up 13.7% compared to the same quarter last year. During the same period in the prior year, the company posted $1.56 earnings per share. On average, analysts forecast that NRG Energy, Inc. will post 6.36 EPS for the current fiscal year.

NRG Energy Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, February 17th. Investors of record on Monday, February 2nd were issued a $0.475 dividend. The ex-dividend date of this dividend was Monday, February 2nd. This represents a $1.90 annualized dividend and a yield of 1.0%. 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 declared that its Board of Directors has authorized a stock repurchase program on Thursday, November 6th that permits the company to repurchase $3.00 billion in shares. This repurchase authorization permits the utilities provider to buy up to 9.2% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company’s board believes its stock is undervalued.

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.