NRG Energy Inc. (NYSE:NRG) previous close was $35.35 while the outstanding shares total 248.00M. The firm has a beta of 1.07, a 12-month trailing P/E ratio of 2.17. NRG’s shares traded higher over the last trading session, gaining 0.42% on 05/20/20. The shares fell to a low of $35.40 before closing at $35.50. Intraday shares traded counted 2.64 million, which was 27.16% higher than its 30-day average trading volume of 3.62M. The stock’s Relative Strength Index (RSI) is 70.52, with weekly volatility at 4.79% and ATR at 1.40. The NRG stock’s 52-week price range has touched low of $19.54 and a $41.78 high.
Investors have identified the Utilities – Independent Power Producers company NRG Energy Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $8.68 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
NRG Energy Inc. (NRG) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For NRG, the company has in raw cash 818.0 million on their books with 711.0 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 3479000000 million total, with 2852000000 million as their total liabilities.
NRG were able to record 142.0 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 433.0 million. In cash movements, the company had a total of 208.0 million as operating cash flow.
Potential earnings growth for NRG Energy Inc. (NRG)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, NRG Energy Inc. recorded a total of 2.02 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -7.23% coming in sequential stages and their sales for the third quarter reducing by -8.72%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 1.77 billion trying to sell their products during the last quarter, with the result yielding a gross income of 244.0 million. This allows shareholders to hold on to 248.00M with the revenue now reading 0.49 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.75 cents a share).
Having a look at the company’s valuation, the company is expected to record 3.96 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on NRG sounds very interesting.
Is the stock of NRG attractive?
In related news, Exec VP, Retail, Killinger Elizabeth R sold 52,500 shares of the company’s stock in a transaction that recorded on Jan 06. The sale was performed at an average price of 37.77, for a total value of 1,982,952. As the sale deal closes, the SVP & General Counsel, Curci Brian now sold 18,500 shares of the company’s stock, valued at 698,560. Also, Senior VP, Business Solutions, Gaudette Robert J sold 37,272 shares of the company’s stock in a deal that was recorded on Jan 06. The shares were price at an average price of 37.76 per share, with a total market value of 1,407,391. Following this completion of acquisition, the Senior VP, Business Solutions, Gaudette Robert J now holds 2,992 shares of the company’s stock, valued at 115,401. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.80%.
10 out of 12 analysts covering the stock have rated it a Buy, while 2 have maintained a Hold recommendation on NRG Energy Inc.. 0 analysts has assigned a Sell rating on the NRG stock. The 12-month mean consensus price target for the company’s shares has been set at $44.30.