Constellation Energy (CEG) Stock: Cramer Says Buy as Three Mile Island Gets Green Light

TLDR

• Regulators granted early approval for the restart of Three Mile Island nuclear plant, supporting long-term data center power contracts
• Constellation Energy completed its acquisition of Calpine, making it the largest power producer in the US
• CEG launched a $335 million accelerated share buyback after existing holders sold 11 million shares in a secondary offering
• The stock trades at $274.06, roughly 24% below the analyst consensus target of $360.00
• Jim Cramer called CEG a buy, citing its pullback and nuclear-heavy portfolio as reasons to step in

Constellation Energy (CEG) has had a busy week. The stock closed at $274.06, up 8% over the past seven days, though it remains down 25.2% year to date.

Constellation Energy Corporation, CEG

Three big developments hit at once: regulatory approval for an early Three Mile Island restart, the closing of the Calpine acquisition, and a $335 million share buyback.

The Three Mile Island approval is the headline item. Regulators cleared the plant for an early restart, which directly supports Constellation’s long-term power contracts with data centers that need reliable, round-the-clock electricity.

That contract pipeline is a core part of the CEG story. Hyperscalers and large industrial customers are actively seeking steady, carbon-free power, and nuclear fits that need better than most alternatives.

The Calpine deal closing is the other major move. With that acquisition complete, Constellation is now the largest power producer in the United States. It expands both capacity and geographic reach.

$335 Million Buyback Follows Secondary Sale

On the capital side, existing shareholders sold 11 million shares through a secondary offering. The company itself received none of those proceeds.

In response, CEG launched an accelerated $335 million buyback, purchasing stock in the open market and directly from the offering underwriters. The effect is a reduction in free float and a partial offset to the dilution from the secondary.

Alongside the buyback, Constellation has directed $180 million toward nuclear facility upgrades at Limerick and Calvert Cliffs. Those investments are aimed at keeping the fleet reliable for the long-term contracted customers.

What Cramer Said

Cramer had flagged CEG earlier in the year when it was among the worst performers of the month, dropping over 20% after the Trump administration floated energy pricing caps in the Mid-Atlantic region.

His view then was that new power plants take too long to build for the policy to seriously hurt Constellation, and that price gouging was never part of their strategy anyway. At 24 times forward earnings, he said he liked the stock.

The analyst community appears to agree on valuation. The consensus target sits at $360.00, putting CEG roughly 24% below that level at current prices. One valuation platform flags it as trading 43.4% below its estimated fair value.

The debt picture is worth watching. Analysts have flagged high leverage as a risk, and the combined weight of the buyback and nuclear upgrade spending adds further pressure to the balance sheet.

Still, the Three Mile Island restart clearance and the Calpine close landed in the same week, giving the company a clearer path to scaling contracted nuclear output.

CEG is up about 3x over the past three years, though the one-year return sits at -9.6%.

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