why NRG Energy Inc. [NRG] is a Good Choice for Investors After New Price Target of $44.22

NRG Energy Inc. [NYSE: NRG] gained 0.88% on the last trading session, reaching $34.28 price per share at the time. The company report on August 6, 2020 that NRG Energy, Inc. Reports Second Quarter 2020 Results.

NRG Energy, Inc. (NYSE: NRG) today reported second quarter 2020 income from continuing operations of $313 million, or $1.27 per diluted common share and Adjusted EBITDA for the second quarter of $574 million.

“NRG delivered strong results in the first half of 2020, and our platform continues to demonstrate resilience during these critical summer months,” said Mauricio Gutierrez, NRG President and Chief Executive Officer. “We are excited by the recently announced Direct Energy acquisition and the regional diversity and expanded products and services the combination will bring to our integrated platform.”.

NRG Energy Inc. represents 248.00 million in outstanding shares, while the company has a total market value of $8.29 billion with the latest information. NRG stock price has been found in the range of $33.81 to $34.57.

If compared to the average trading volume of 2.57M shares, NRG reached a trading volume of 1941289 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about NRG Energy Inc. [NRG]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for NRG shares is $44.22 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on NRG stock is a recommendation set at 1.80. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Seaport Global Securities have made an estimate for NRG Energy Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on May 20, 2020. The new note on the price target was released on March 03, 2020, representing the official price target for NRG Energy Inc. stock. Previously, the target price had yet another raise to $45, while Vertical Research analysts kept a Hold rating on NRG stock.

The Average True Range (ATR) for NRG Energy Inc. is set at 0.88, with the Price to Sales ratio for NRG stock in the period of the last 12 months amounting to 0.86. The Price to Book ratio for the last quarter was 5.54, with the Price to Cash per share for the same quarter was set at 3.14. Price to Free Cash Flow for NRG in the course of the last twelve months was 5.90 with Quick ratio for the last quarter at 1.10.

Trading performance analysis for NRG stock

NRG Energy Inc. [NRG] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 1.39. With this latest performance, NRG shares gained by 6.10% in over the last four-week period, additionally sinking by -9.50% over the last 6 months – not to mention a drop of -2.39% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for NRG stock in for the last two-week period is set at 53.02, with the RSI for the last a single of trading hit 59.60, and the three-weeks RSI is set at 53.96 for NRG Energy Inc. [NRG]. The present Moving Average for the last 50 days of trading for this stock 33.95, while it was recorded at 33.86 for the last single week of trading, and 35.09 for the last 200 days.

NRG Energy Inc. [NRG]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and NRG Energy Inc. [NRG] shares currently have an operating margin of +11.64 and a Gross Margin at +20.25. NRG Energy Inc.’s Net Margin is presently recorded at +42.48.

Return on Total Capital for NRG is now 16.80, given the latest momentum, and Return on Invested Capital for the company is 62.57. Return on Equity for this stock inclined to 1,941.98, with Return on Assets sitting at 35.55. When it comes to the capital structure of this company, NRG Energy Inc. [NRG] has a Total Debt to Total Equity ratio set at 388.84. Additionally, NRG Total Debt to Total Capital is recorded at 79.54, with Total Debt to Total Assets ending up at 51.45. Long-Term Debt to Equity for the company is recorded at 379.13, with the Long-Term Debt to Total Capital now at 77.56.

Reflecting on the efficiency of the workforce at the company, NRG Energy Inc. [NRG] managed to generate an average of $899,497 per employee. Receivables Turnover for the company is 9.46 with a Total Asset Turnover recorded at a value of 0.84.NRG Energy Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.10 and a Current Ratio set at 1.20.

NRG Energy Inc. [NRG]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, NRG Energy Inc. posted 1.88/share EPS, while the average EPS was predicted by analysts to be reported at 2.1/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -10.50%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for NRG. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for NRG Energy Inc. go to -12.80%.

An analysis of insider ownership at NRG Energy Inc. [NRG]

There are presently around $8,642 million, or 98.22% of NRG stock, in the hands of institutional investors. The top three institutional holders of NRG stocks are: VANGUARD GROUP INC with ownership of 30,660,929, which is approximately 0.762% of the company’s market cap and around 0.80% of the total institutional ownership; BLACKROCK INC., holding 19,132,319 shares of the stock with an approximate value of $655.86 million in NRG stocks shares; and STATE STREET CORP, currently with $450.11 million in NRG stock with ownership of nearly 2.55% of the company’s market capitalization.

220 institutional holders increased their position in NRG Energy Inc. [NYSE:NRG] by around 43,724,947 shares. Additionally, 246 investors decreased positions by around 32,792,217 shares, while 70 investors held positions by with 175,588,775 shares. The mentioned changes placed institutional holdings at 252,105,939 shares, according to the latest SEC report filing. NRG stock had 66 new institutional investments in for a total of 16,175,299 shares, while 77 institutional investors sold positions of 4,791,482 shares during the same period.

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