NRG Energy, Inc. (NYSE:NRG) to Issue Dividend Increase – $0.44 Per Share

NRG Energy, Inc. (NYSE:NRG) declared a quarterly dividend on Thursday, January 23rd,Wall Street Journal reports. Investors of record on Monday, February 3rd will be given a dividend of 0.44 per share by the utilities provider on Tuesday, February 18th. This represents a $1.76 dividend on an annualized basis and a yield of 1.59%. The ex-dividend date of this dividend is Monday, February 3rd. This is an increase from NRG Energy’s previous quarterly dividend of $0.41.

NRG Energy has raised its dividend by an average of 7.8% annually over the last three years. NRG Energy has a dividend payout ratio of 20.1% meaning its dividend is sufficiently covered by earnings. Analysts expect NRG Energy to earn $7.53 per share next year, which means the company should continue to be able to cover its $1.63 annual dividend with an expected future payout ratio of 21.6%.

NRG Energy Stock Performance

NYSE NRG traded up $0.56 on Thursday, reaching $110.91. 1,789,874 shares of the company’s stock traded hands, compared to its average volume of 3,128,631. The firm has a market cap of $22.47 billion, a price-to-earnings ratio of 27.90, a P/E/G ratio of 1.31 and a beta of 1.15. The stock has a 50 day moving average price of $96.75 and a 200-day moving average price of $88.08. NRG Energy has a fifty-two week low of $51.26 and a fifty-two week high of $115.38. The company has a debt-to-equity ratio of 5.57, a quick ratio of 1.10 and a current ratio of 1.17.

Insider Buying and Selling at NRG Energy

In other NRG Energy news, CFO Bruce Chung sold 20,000 shares of the firm’s stock in a transaction on Monday, January 13th. The stock was sold at an average price of $97.63, for a total value of $1,952,600.00. Following the transaction, the chief financial officer now owns 69,454 shares in the company, valued at approximately $6,780,794.02. This trade represents a 22.36 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, VP Robert J. Gaudette sold 60,000 shares of the firm’s stock in a transaction on Thursday, January 2nd. The shares were sold at an average price of $91.41, for a total value of $5,484,600.00. Following the completion of the transaction, the vice president now owns 64,448 shares in the company, valued at $5,891,191.68. The trade was a 48.21 % decrease in their position. The disclosure for this sale can be found here. 0.86% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the stock. Evercore ISI raised shares of NRG Energy from an “in-line” rating to an “outperform” rating and lifted their price objective for the company from $74.00 to $126.00 in a report on Tuesday. Citigroup boosted their price objective on NRG Energy from $84.00 to $100.00 and gave the company a “buy” rating in a research report on Thursday, October 31st. Guggenheim lifted their price target on shares of NRG Energy from $77.00 to $118.00 and gave the company a “buy” rating in a research note on Tuesday, October 8th. Wells Fargo & Company increased their price objective on shares of NRG Energy from $130.00 to $140.00 and gave the company an “overweight” rating in a report on Monday, November 11th. Finally, Jefferies Financial Group raised shares of NRG Energy from a “hold” rating to a “buy” rating and boosted their target price for the stock from $93.00 to $113.00 in a research note on Tuesday, November 26th. Three research analysts have rated the stock with a hold rating and five have given a buy rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $111.43.

About NRG Energy

NRG Energy, Inc, together with its subsidiaries, operates as an energy and home services company in the United States and Canada. It operates through Texas; East; West/Services/Other; Vivint Smart Home; and Corporate Activities segments. The company produces and sells electricity generated using coal, oil, solar, and battery storage; natural gas; and a cloud-based home platform, including hardware, software, sales, installation, customer service, technical support, and professional monitoring solutions.