U.S. asset manager Vanguard Group has upped its stake in independent power producer Talen Energy (TLN).
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Vanguard has grown its stake in TLN stock to 10.4%, according to a filing with the U.S. Securities and Exchange Commission (SEC). The increased stake comes amid rising energy demand fueled by generative artificial intelligence (AI).
As technology companies such as Microsoft (MSFT) and Amazon (AMZN) pour billions of dollars into AI technology, the demand for electricity to power the needed data centers is growing exponentially. And the key beneficiaries of this soaring energy demand are utilities such as Talen Energy.
Threefold Increase
Vanguard Group is now the second-largest shareholder of Talen Energy. The investment firm most recently purchased just over four million shares of TLN stock, lifting its stake in the utility company to 10.4% from 9.9% previously.
Vanguard has continued buying TLN stock despite a huge run-up in the share price over the past year. In the last 12 months, Talen Energy’s stock has risen threefold, or by 234%. Yet the big gains do not appear to have scared off large institutional investors such as Vanguard Group.
Is TLN Stock a Buy?
The stock of Talen Energy has a consensus Strong Buy rating among six Wall Street analysts. That rating is based on six Buy recommendations assigned in the last three months. The average TLN price target of $248.50 implies 15.27% upside from current levels.
