The stock price of NRG Energy Inc. (NYSE: NRG) has surged by 3.63 when compared to previous closing price of 67.69, but the company has seen a 4.44% gain in its stock price over the last five trading sessions. Seeking Alpha reported 2024-03-30 that Real estate and utilities sectors are experiencing a rally coinciding with a drop in the 10-year Treasury rate. REITs and utilities are often treated as bond proxies, but they have the potential for growth even in a high-interest rate environment. The market’s lack of nuance and passive ownership of REITs may be contributing to the undervaluation of the sector.
Is It Worth Investing in NRG Energy Inc. (NYSE: NRG) Right Now?
The 36-month beta value for NRG is also noteworthy at 1.12. There are mixed opinions on the stock, with 4 analysts rating it as a “buy,” 4 rating it as “overweight,” 1 rating it as “hold,” and 0 rating it as “sell.”
The public float for NRG is 203.45M, and at present, short sellers hold a 7.51% of that float. The average trading volume of NRG on April 02, 2024 was 3.63M shares.
NRG’s Market Performance
NRG stock saw an increase of 4.44% in the past week, with a monthly gain of 26.81% and a quarterly increase of 35.27%. The volatility ratio for the week is 2.83%, and the volatility levels for the last 30 days are 2.92% for NRG Energy Inc. (NRG). The simple moving average for the last 20 days is 10.38% for NRG stock, with a simple moving average of 53.97% for the last 200 days.
Analysts’ Opinion of NRG
Many brokerage firms have already submitted their reports for NRG stocks, with Wells Fargo repeating the rating for NRG by listing it as a “Overweight.” The predicted price for NRG in the upcoming period, according to Wells Fargo is $65 based on the research report published on January 23, 2024 of the current year 2024.
UBS, on the other hand, stated in their research note that they expect to see NRG reach a price target of $46, previously predicting the price at $33. The rating they have provided for NRG stocks is “Neutral” according to the report published on November 06th, 2023.
Guggenheim gave a rating of “Buy” to NRG, setting the target price at $50 in the report published on November 01st of the previous year.
NRG Trading at 22.70% from the 50-Day Moving Average
After a stumble in the market that brought NRG to its low price for the period of the last 52 weeks, the company was able to rebound, for now settling with 2.30% of gains for the given period.
Volatility was left at 2.92%, however, over the last 30 days, the volatility rate increased by 2.83%, as shares surge +23.70% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +37.66% upper at present.
During the last 5 trading sessions, NRG rose by +4.44%, which changed the moving average for the period of 200-days by +104.22% in comparison to the 20-day moving average, which settled at $64.22. In addition, NRG Energy Inc. saw 35.69% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at NRG starting from Killinger Elizabeth R, who sale 40,000 shares at the price of $63.64 back on Mar 15 ’24. After this action, Killinger Elizabeth R now owns 107,123 shares of NRG Energy Inc., valued at $2,545,600 using the latest closing price.
Patel Rasesh M., the Exec VP, Smart Home of NRG Energy Inc., sale 49,092 shares at $62.59 during a trade that took place back on Mar 14 ’24, which means that Patel Rasesh M. is holding 356,962 shares at $3,072,668 based on the most recent closing price.
Stock Fundamentals for NRG
Current profitability levels for the company are sitting at:
- -0.0 for the present operating margin
- 0.1 for the gross margin
The net margin for NRG Energy Inc. stands at -0.01. The total capital return value is set at -0.0. Equity return is now at value -6.00, with -0.73 for asset returns.
Based on NRG Energy Inc. (NRG), the company’s capital structure generated 0.79 points at debt to capital in total, while cash flow to debt ratio is standing at -0.02. The debt to equity ratio resting at 3.78. The interest coverage ratio of the stock is -0.1.
Currently, EBITDA for the company is 325.0 million with net debt to EBITDA at 7.78. When we switch over and look at the enterprise to sales, we see a ratio of 0.87. The receivables turnover for the company is 8.11for trailing twelve months and the total asset turnover is 1.1. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.02.
Conclusion
In summary, NRG Energy Inc. (NRG) has had a better performance as of late. Analysts have bullish opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
