5 Best Value Stocks to Buy in 2022 According to Richard Pzena

2. NRG Energy, Inc. (NYSE:NRG)

Number of Hedge Fund Holders: 28

P/E Ratio as of May 20: 2.78

NRG Energy, Inc. (NYSE:NRG) is an integrated power company in the United States, serving residential, commercial, industrial, and wholesale customers. Richard Pzena’s Pzena Investment Management added NRG Energy, Inc. (NYSE:NRG) to its portfolio in Q2 2020. In the first quarter of 2022, Pzena elevated his stake in NRG Energy, Inc. (NYSE:NRG) by 9%, holding 18.65 million shares worth $715.5 million, representing 2.70% of the total 13F portfolio. 

NRG Energy, Inc. (NYSE:NRG) declared on April 20 a $0.35 per share quarterly dividend, in line with previous. The dividend was paid on May 16, to shareholders of the company as of May 2. NRG Energy, Inc. (NYSE:NRG)’s dividend yield on May 20 stood at 3.06%. 

On May 6, NRG Energy, Inc. (NYSE:NRG) reported its Q1 results, posting GAAP earnings per share of $7.17, beating market estimates by $6.55. The revenue of $7.90 billion also outperformed analysts’ estimates by $3.44 billion. 

BofA analyst Julien Dumoulin-Smith on April 21 downgraded NRG Energy, Inc. (NYSE:NRG) to Neutral from Buy with a price target of $43, down from $47, citing increasing concerns about NRG Energy, Inc. (NYSE:NRG) being at greater risk given exposure to elevated gas prices.

According to Insider Monkey’s Q4 database, NRG Energy, Inc. (NYSE:NRG) was part of 28 public hedge fund portfolios, compared to 34 funds in the prior quarter. Andrew Wellington and Jeff Keswin’s Lyrical Asset Management disclosed a significant stake in the company in the first quarter of 2022, with 5.6 million shares worth over $217 million.