Why This Utility Stock Dropped 10.7% in September
Shares of utility NRG Energy (NYSE: NRG) slipped 10.7% in September, according to data provided by S&P Global Market Intelligence. In contrast, the Vanguard Utilities Index Fund ETF, which owns NRG Energy stock in its portfolio and can be considered a proxy for utility stocks, finished just one notch in the red last month. September was, in fact, NRG's weakest month since the stock market's March crash.
While several utility stocks lost ground last month largely on profit taking, NRG Energy shareholders appear to be concerned about company-specific events.
The biggest recent development is NRG's impending acquisition of Direct Energy, a North American subsidiary of Centrica PLC. NRG announced the acquisition in July, and although it expects the deal to close by the end of this year, there has been no update since, especially on the regulatory front.
Source Fool.com
