Will NRG Energy, Inc. (NRG) Keep On Trucking?

Despite closing 0.73 points higher on 06 December, NRG Energy, Inc. (NYSE:NRG) remains a key investment for many, but the stock is also a popular trading vehicle. Here’s how to trade it using charts and trading levels Friday. The shares accumulated 1.83 percent at $40.56 with a heavy trade volume of 5.496 million shares. After opening the session at $39.5, the shares went as high as $40.56 and as low as $39.13, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $11.9 billion and now has 292.65 million shares outstanding. NRG Energy, Inc. (NRG) stock has gained 5.9 percent of market value in 21 trading days.

NRG stock has a trailing 3-year beta of 1.05, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $3.1 a share in the trailing twelve months. The stock’s value has surged 42.42 percent year to date (YTD) against a rise of 48.46 percent in 12 month’s time. The company’s shares still trade 0.45 percent away from its 1-year high of $40.38 and 70.78 percent up from 52-week low of $23.75. The average consensus rating on the company is 1.7, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

NRG Energy, Inc. (NRG) will probably climb 5.4 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $51-month high price target. This represents a whopping 25.74 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $43.25, which represents a return potential of 6.63 percent when compared to the closing price of the stock of $40.56 on Thursday, December 06. The lowest price target for the stock is $27 — slightly more than -33.43 percent from NRG’s current share price.

History has shown that shares in NRG Energy, Inc. have gone down on 21 different earnings reaction days and are predicted to add 0.03 percent when the company reports upcoming earnings. Investors will get their next glimpse of NRG’s Q4 earnings on March 01. Analysts are forecasting revenue to suffer decline of -33.6 percent to $1.66B in the fiscal fourth quarter, while earnings are seen soaring by nearly -20 percent to $0.2 per share. It earned $0.96 per share, worse than the $1.31, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $3.06B, worse than the $3.18B analysts expected. Earnings are estimated to increase by 167.4 percent this year, 56.68 percent next year and continue to increase by 77.23 percent annually for the next 5 years.

Let’s take a look at some insider activity at NRG Energy, Inc. (NYSE:NRG) and see the pattern. The earliest insider trade took place on 09/13/2018. Killinger Elizabeth R parted with a total of 24.6 thousand shares of company at average share price of $35.84. The total for the sales was set at $881.66 thousand. After this transaction, the EVP & President, NRG Retail account balance stood at 105.73 thousand shares. The stock grew 13.17 percent since that insider sale. On 09/10/2018, Moser Christopher, Exec Vice Pres, Operations, sold 43.98 thousand shares at a price per share of $35.11. This removed 1.54 million shares from the insider’s fortune and the stock saw a 15.52 percent rally in value since the news became public. This transaction left 61.08 thousand shares in the Exec Vice Pres, Operations account.

On 09/06/2018, Exec Vice Pres, Operations Moser Christopher performed a sale transaction worth $534.13 thousand. This sale at $35.14 each has eliminated 15.2 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 15.42 percent increase since the transaction was reported. The insider now is left with 105.05 thousand shares remaining in the account. Callen David, who performs the SVP, Chief Accounting Offficer job, sold 9.2 thousand shares for $305.53 thousand. The disposal occurred on 08/06/2018 was priced at $33.21 per share. The share price soared 22.13 percent since the reporting date. Callen David now left with a stake of 34.38 thousand NRG stock worth $1.39 million after the insider selling.

The stock is currently hovering around the first support level of $39.61. Below this, the next support is placed in the zone of $38.65. Till the time, the NRG stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 62.88 on daily chart, which may remain a cause for concern. If the price breaks below $38.65 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $41.04 mark may result into a pull-back move towards $41.51 level.

Further, it is sporting a 1.15 on the Price-to-Sales ratio. Compare this with the industry average P/S of 2.19. 28 percent is the gross profit margin for NRG Energy, Inc. and operating margin sits at 13.2 percent. Along with this, the net profit margin is 5.4 percent.