Key Stats for Constellation Energy Stock
- Price change for Constellation Energy stock: 12%
- $CEG Stock Price as of Oct. 6: $300
- 52-Week High: $413
- $CEG Stock Price Target: $342
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What Happened?
Constellation Energy (CEG) shares rose more than 12% on Tuesday. Google said it has contracted 3,590 megawatts of power from the company in the PJM grid, the largest in the US. About a quarter of that supply is new nuclear energy.
The deal has two parts.
- First, Google signed a 20-year agreement for 890 megawatts from several Constellation nuclear plants. Those plants will be upgraded to produce more power. The first upgraded power is expected in 2028.
- Second, Google signed a 15-year deal for another 2,700 megawatts. That power is not tied to one plant. Google said it gives Constellation long-term revenue certainty.
Constellation will invest more than $4.3 billion in its fleet under the deal. The 11 nuclear units being upgraded are in Illinois, Pennsylvania, and New Jersey.
The timing matters.
PJM capacity prices have risen more than 11-fold since 2024.
PJM has also proposed that data centers bring their own power or risk being shut off at peak times. This deal responds to that plan.
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What the Market Is Telling Us About Constellation Energy Stock
For Constellation Energy stock, this is a big vote of confidence. A large tech buyer is locking in power for 15 to 20 years.
The business was already doing well. In Q2, Constellation earned $2.55 per share in adjusted operating earnings. It raised its full-year guidance by $0.50. The new range is $11.50 to $12.50.
Management had also signed about 920 megawatts of long-term nuclear deals. Those average 18.5 years. About 30% of its clean baseload output is now under long-term contracts.
CEO Joe Dominguez said clearer grid rules were bringing customers back to the table. He expected deal flow to “kick off with a bit of a bang.”
Constellation has also spent about $2.2 billion on buybacks this year.
There are still things to watch. Pricing for the Google deal was not shared.
The $4.3 billion investment is real money leaving the company. And Constellation Energy stock has jumped sharply in one day, so expectations are higher now.
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So what is Constellation Energy stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
