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GNE: Share Repurchases Will Drive Future Upside Despite Slower Customer Additions

Electrification Trends And Renewables Will Reshape Energy Markets

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GNE
AnalystConsensusTarget
Not Invested
Published 08 Jun 2025

Update shared on 12 Dec 2025

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2.6%

Analysts have nudged their price target on Genie Energy modestly higher to 16.00 dollars. This reflects slightly refined assumptions around discount rates, revenue growth, profit margins, and future valuation multiples, while maintaining their broadly stable outlook on the company.

What's in the News

  • Reported third quarter 2025 GRE operational metrics, with total Retail Customer Equivalents rising 4.2% year over year to 396, driven by a 5.4% increase in electricity RCEs to 318, partially offset by a 0.7% decline in natural gas RCEs to 78 (company announcement of operating results).
  • Total meters grew modestly to 402, up 0.8% from 399 in the prior year period, as electricity meters increased 1.5% to 316 while natural gas meters fell 1.6% to 86 (company announcement of operating results).
  • Gross meter additions dropped sharply to 47 in the quarter, a 54.7% decline from 104 a year earlier, indicating slower new-customer acquisition despite modest meter growth (company announcement of operating results).
  • From July 1, 2025 to September 30, 2025, the company repurchased 123,621 shares, or 0.46% of shares outstanding, for 2 million dollars (buyback tranche update).
  • Since initiating its buyback program on May 10, 2013, Genie Energy has cumulatively repurchased 3,405,457 shares, representing 12.87% of its shares, for a total of 33.5 million dollars (buyback tranche update).

Valuation Changes

  • Fair Value: Unchanged at 16.00 dollars per share, reflecting a stable intrinsic value estimate.
  • Discount Rate: Edged down slightly from 6.956 percent to 6.956 percent, implying a marginally lower required return.
  • Revenue Growth: Essentially flat, moving fractionally from about 5.95 percent to 5.95 percent, indicating no meaningful change in top line growth assumptions.
  • Net Profit Margin: Nearly unchanged, dipping marginally from roughly 3.08 percent to 3.08 percent, signaling a stable profitability outlook.
  • Future P/E: Steady at approximately 27.66 times, suggesting no material shift in the assumed valuation multiple.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.