Constellation Energy To Sell PJM Portfolio Of Generation Assets In $5 Billion Deal

Constellation Energy (NASDAQ:CEG) shares are trending on Thursday. On Wednesday, the company disclosed that it is advancing its regulatory commitments through a significant asset sale. This movement comes as the broader market experienced declines, with major indices like the Dow Jones and S&P 500 both down on Wednesday. Assets Details Constellation plans to sell a portfolio of generation assets in PJM to LS Power at $5 billion, before closing adjustments. This represents an acquisition price of around $1,142/kW. This is a part of fulfilling regulatory requirements from the U.S. Department of Justice (DOJ) related to its acquisition of Calpine. The transaction includes approximately 4.4 gigawatts of natural gas-fired generation capacity located in Delaware and Pennsylvania, with the aim of enhancing operational efficiency and compliance with regulatory standards. Additionally, this sale represents a crucial step in addressing competitive considerations in the market, as the DOJ’s resolution outlines a series of divestitures necessary for Constellation to move forward with its strategic plans. The company expects to complete the remaining DOJ requirements later this year, further solidifying its position in the energy sector. Earnings Snapshot Last month, the company reported fourth-quarter FY25 revenue of $6.07 billion, beating the consensus of $5.300 billion. Adjusted EPS fell to $2.30 from $2.44 in the year-ago quarter, but exceeded the consensus of $2.23. Technical Analysis Constellation Energy stock is currently trading 1.07% above its 20-day simple moving average (SMA) and 4.6% above its 100-day SMA, indicating a positive short-term trend. Over the past 12 months, shares have increased by 45.48% and are currently positioned closer to their 52-week highs than lows, reflecting strong performance in the longer term. The RSI is at 54.39, which is considered neutral territory, suggesting that the stock is neither overbought nor oversold. Meanwhile, MACD is at 2.1012, below its signal line at 3.1416, indicating bearish pressure on the stock. The combination of a neutral RSI and bearish MACD suggests mixed momentum for Constellation Energy’s stock at this time. Key Resistance: $331.50 Key Support: $303.00 Analyst Outlook The stock carries a Buy Rating with an average price target of $367.11. Recent analyst moves include: Citigroup: Neutral (Lowers Target to $348.00) (Feb. 25) Mizuho: Neutral (Lowers Target to $330.00) (Feb. 25) Barclays: Overweight (Target $356.00) (Feb. 11) Benzinga Edge Rankings Below is the Benzinga Edge scorecard for Constellation Energy, highlighting its strengths and weaknesses compared to the broader market: Value Rank: 49.3 — The stock is trading at a moderate valuation relative to peers. Growth Rank: 80.46 — Indicates strong growth potential in the current market. Momentum Rank: 73.04 — Suggests that the stock is experiencing positive momentum. The Verdict: Constellation Energy’s Benzinga Edge signal reveals a growth-heavy profile, indicating strong potential amidst a competitive landscape. Top ETF Exposure The Utilities Select Sector SPDR Fund (NYSE:XLU): 8.09% Weight Vanguard Utilities ETF (NYSE:VPU): 7.51% Weight VanEck Uranium & Nuclear ETF (NYSE:NLR): 8.16% Weight Significance: Because CEG carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock. CEG Stock Price Activity: Constellation Energy shares were up 0.09% at $317.50 during premarket trading on Thursday, according to Benzinga Pro data. Photo via Shutterstock