Utility Stock Plummets on New Acquisition

NRG Energy will acquire Vivint Smart Home for $12 per share

Deputy Editor
Dec 6, 2022 at 11:53 AM
facebook X logo linkedin

NRG Energy Inc (NYSE:NRG) stock is plummeting today, down 14% at $35.10 at last glance, after news that the utility name will acquire Vivint Smart Home (VVNT) for $12 per share, or $5.2 billion -- including $2.8 billion in cash transaction and $2.4 billion in debt. VVNT is moving the opposite direction after the news, up roughly 32%.

NRG is receiving plenty of attention in the options pits amid the deal, with overall options volume running at 14 times the intraday average. The December 35 put is the most popular contract by far, with new positions opening there. It's also worth noting that the stock has landed on the short sell restricted (SSR) list today. 

On the charts, today's drop has NRG dangerously close to its July 20 annual low of $34.91, down 18.2% year-to-date. A short-term bounce could be overdue, however, as the stock's 14-day relative strength index (RSI) of 32.5 sits on the cusp of "oversold" territory. 

Analysts are split on NRG Energy, with three of the six firms in coverage carrying a "strong buy" and three a "hold" or worse. Meanwhile, short interest represents 6.5% of the stock's available float, and would take over six days to cover, at the security's average pace of trading. 




Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI