NRG Energy stock rallies to lead the S&P 500's winners after repurchase program boost, activist investor call to oust CEO
Shares of NRG Energy Inc. (NRG) jumped 2.8% toward a two-month high in morning trading Thursday, enough to pace the S&P 500's gainers, after the Texas-based energy utility said it boosted its stock repurchase program to $2.7 billion from $1 billion. The company also announced a new $150 million cost cutting plan to be completed by 2025. The announcements come after The Wall Street Journal reported late Wednesday that activist investor Elliott Investment Management is looking to oust NRG's chief executive officer, Mauricio Gutierrez, who has been in the role for nearly eight years. In May, Elliott Management disclosed a $1 billion stake in NRG as it unveiled a plan to create $5 billion in shareholder value. At that time, Elliott called NRG's $5.2 billion deal to buy purchase of Vivint Smart Home Inc. the "single worst deal in the power and utilities sector in the past decade." NRG's stock has declined 4.5% over the past 12 months, while the Utilities Select Sector SPDR exchange-traded fund (XLU) has gained 0.3% and the S&P 500 has climbed 15.9%.
-Tomi Kilgore
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06-22-23 0950ET
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