Shares of NRG Energy Inc. surged 6.2% toward a six-month high in premarket trade Tuesday, after activist investor Elliott Associates disclosed in a filing that it has taken a 6.9% stake in the energy production and distribution company. Elliott also disclosed that it entered into an agreement with Bluescape Resources to form an investor group owning 9.4% of NRG's shares outstanding. Elliott said in an SEC filing that it believes NRG's stock was "deeply undervalued," and that there are "numerous opportunities to significantly increase shareholder value," including operational and financial improvements and strategic initiatives. Elliott is also considering nominating one or more people to NRG's board. NRG's stock has rallied 44% over the past 12 months, while the S&P 500 has gained 21%.
Copyright © 2017 MarketWatch, Inc.