What Did NRG Insiders Know Before Monday's Stock Surge?
After trading lower for weeks, shares of NRG Energy Inc. (NYSE:NRG) jumped on Monday, shortly after company officials purchased tens of thousands of dollars in company stock.
The executives may have been trading on insider information based on the planned acquisition of GenOn Energy Inc., which the company announced on Monday. According to The Wall Street Journal, the $1.7 billion all-stock deal sat well with investors, as the company's stock rallied amid an overarching downturn in U.S. stocks.
The merger is expected to help both companies save an estimated $300 million a year due to lower administrative and financial costs, and will create the largest retail energy provider in the country.
CEO David Crane stated that when the merger is complete, the company will begin to invest in new projects, as well.
"It is time for this country to reinvest in its energy infrastructure," Crane told the news source. "If we can get a good return for our shareholders, we will reinvest in our infrastructure."
In the days leading up to the announcement, company officials purchased $75,050 through insider transactions.
Do you think these trades were based on privileged information?
Read Full Insider Report For:
NRG |
