NRG Energy Inc. (NYSE: NRG) is one of the major utilities on the market but it has been in a steady decline for over a year. Slumping oil prices and the threat of an interest rate hike from the Federal Reserve have hung over this company. Something had to change, and as it turned out there was a changing of the guard.
The company announced that David Crane is stepping down as president and chief executive officer (CEO) of NRG, effective immediately. Crane had served in that position since 2003.
Mauricio Gutierrez will be replacing Crane, as the president and CEO, and it is expected that Gutierrez will be appointed as a director as well. So far Gutierrez has served as executive vice president and chief operating officer (COO) since July 2010 and has been with NRG in various roles since August 2004.
Howard E. Cosgrove, chairman of the NRG Board, commented:
During more than 12 years at the helm of NRG, Mr. Crane led the company from emergence from bankruptcy to its current position as leader in the wholesale and retail energy markets. The Board thanks Mr. Crane for his leadership that helped transform NRG into the Company it is today.
This company has been in a steady decline since the beginning of January 2014. It seems only natural that there would be a change in leadership to turn this trend around. So far in 2015, NRG has vastly underperformed the market, with the stock down 58% year to date. However, over the past 52 weeks the stock dropped over 61%.
Shares of NRG were last seen down 19% at $8.89, with a consensus analyst price target of $22.3 34 and a 52-week trading range of $8.86 to $28.60.
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