Fintel reports that on August 9, 2023, BMO Capital maintained coverage of NRG Energy (NYSE:NRG) with a Market Perform recommendation.
Analyst Price Forecast Suggests 16.13% Upside
As of August 2, 2023, the average one-year price target for NRG Energy is 42.71. The forecasts range from a low of 33.33 to a high of $54.60. The average price target represents an increase of 16.13% from its latest reported closing price of 36.78.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for NRG Energy is 25,774MM, a decrease of 15.31%. The projected annual non-GAAP EPS is 5.08.
NRG Energy Declares $0.38 Dividend
On July 17, 2023 the company declared a regular quarterly dividend of $0.38 per share ($1.51 annualized). Shareholders of record as of August 1, 2023 will receive the payment on August 15, 2023. Previously, the company paid $0.38 per share.
At the current share price of $36.78 / share, the stock's dividend yield is 4.11%.
Looking back five years and taking a sample every week, the average dividend yield has been 2.65%, the lowest has been 0.28%, and the highest has been 5.42%. The standard deviation of yields is 1.57 (n=236).
The current dividend yield is 0.92 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is -0.17. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.26%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 1241 funds or institutions reporting positions in NRG Energy. This is a decrease of 54 owner(s) or 4.17% in the last quarter. Average portfolio weight of all funds dedicated to NRG is 0.23%, a decrease of 13.64%. Total shares owned by institutions decreased in the last three months by 1.90% to 258,723K shares. 
The put/call ratio of NRG is 0.66, indicating a bullish outlook.
What are Other Shareholders Doing?
Putnam Investments holds 12,354K shares representing 5.37% ownership of the company. In it's prior filing, the firm reported owning 12,428K shares, representing a decrease of 0.60%. The firm decreased its portfolio allocation in NRG by 1.57% over the last quarter.
Invesco holds 7,463K shares representing 3.24% ownership of the company. In it's prior filing, the firm reported owning 8,344K shares, representing a decrease of 11.81%. The firm decreased its portfolio allocation in NRG by 8.21% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 7,104K shares representing 3.09% ownership of the company. In it's prior filing, the firm reported owning 6,996K shares, representing an increase of 1.51%. The firm increased its portfolio allocation in NRG by 1.03% over the last quarter.
Lsv Asset Management holds 6,705K shares representing 2.91% ownership of the company. In it's prior filing, the firm reported owning 7,006K shares, representing a decrease of 4.49%. The firm increased its portfolio allocation in NRG by 2.59% over the last quarter.
QUAL - iShares Edge MSCI USA Quality Factor ETF holds 6,659K shares representing 2.89% ownership of the company. In it's prior filing, the firm reported owning 4,538K shares, representing an increase of 31.86%. The firm decreased its portfolio allocation in NRG by 3.37% over the last quarter.
NRG Energy Background Information
(This description is provided by the company.)
NRG is bringing the power of energy to people and organizations by putting customers at the center of everything it does. It generates electricity and provide energy solutions and natural gas to millions of customers through its diverse portfolio of retail brands. A Fortune 500 company, operating in the United States and Canada, NRG delivers innovative solutions while advocating for competitive energy markets and customer choice, working towards a sustainable energy future.
Additional reading:
- NRG Energy, Inc. Reports Second Quarter 2023 Results and Reaffirms 2023 Financial Guidance
- AMENDMENT NO. 3 RECEIVABLES LOAN AND SERVICING AGREEMENT
- Joinder Agreement
- NRG Announces Chief Financial Officer Transition
- [CONFIDENTIAL] EQUITY PURCHASE AGREEMENT dated as of May 31, 2023 by and among Constellation Energy Generation, LLC, as Buyer Texas Genco GP, LLC, Texas Genco LP, LLC, together, Seller TABLE OF CONTENTS
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
