Goldman Sachs Energy Stocks: Top 5 Stock Picks

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

Goldman Sachs’ Stake Value: $3,354,695,650

Number of Hedge Fund Holders: 39

NRG Energy, Inc. (NYSE:NRG) is an integrated electricity company in the United States. The company’s operations are divided into segments – Texas, East, and West. NRG Energy, Inc. (NYSE:NRG) is one of the top Goldman Sachs energy stocks. In Q2 2023, Goldman Sachs held 31.7 million shares of NRG Energy, Inc. (NYSE:NRG) worth $3.35 billion, representing 0.67% of the total securities. 

On July 18, NRG Energy, Inc. (NYSE:NRG) declared a $0.3775 per share quarterly dividend, in line with previous. The dividend was distributed to shareholders on August 15. 

According to Insider Monkey’s second quarter database, NRG Energy, Inc. (NYSE:NRG) was part of 39 hedge fund portfolios, compared to 29 in the last quarter. Permian Investment Partners is the leading position holder in the company, with nearly 6 million shares worth $223.18 million. 

Legacy Ridge Capital made the following comment about NRG Energy, Inc. (NYSE:NRG) in its Q4 2022 investor letter:

“NRG Energy, Inc. (NYSE:NRG) was covered in the 2019 letter with VST. We sold the shares as COVID induced volatility presented better risk/reward opportunities, but never subsequently repurchased shares—as we did with VST. Not only do we think VST is a better value, but the management team at NRG appears to have gone astray. Despite coming to his position during an activist campaign by Elliott Management in 2017, when the prior empire-building CEO was shown the door, the replacement CEO has seemingly embarked on the same failed strategy. In early December they announced the purchase of Vivint Smart Home, a smart home platform company, for $2.8 billion. The transaction diversifies NRG’s business, increases leverage, dramatically reduces intermediate-term shareholder capital returns, and most importantly, is the opposite of what management told us they were going to do when they assumed the role in 2017. The stock fell 15% on the day of the announcement and is down another 5% since then, and now 10% lower than when we first wrote about it. We like the generation business at NRG and the valuation is almost back to interesting, but we’d probably have to see turnover in the C-suite and a refreshed corporate strategy to reignite our enthusiasm.”