Shares of NRG Energy Inc.
NRG,
charged up 1.5% toward a near seven-month high, after activist investor Elliott Investment Management LP once again urged the energy utility to name a new chief executive officer and enhance its board of directors. Elliott, which has a $1 billion investment, or more than a 13% interest in NRG, said the company’s recent actions showed that the “true cause” of the company’s underperformance was that NRG CEO Mauricio Gutierrez has “lost the confidence of the core investor base, and the board lacks the will to make the right decision for the company.” Elliott said it believes there is a “readily actionable path” to create more than $5 billion of value at NRG, but it will not require management and board changes to realize that value. NRG’s stock, which is on track to open at the highest price seen during regular-session hours since Dec. 6, 2022, has lost 7.0% over the past 12 months through Monday, while the Utilities Select Sector SPDR exchange-traded fund
XLU,
has declined 5.6% and the S&P 500
SPX,
has advanced 11.0%.
