NEW YORK, July 1, 2026 – Constellation Energy Corporation (NASDAQ: CEG) saw its shares tumble roughly 5.8% in afternoon trading Wednesday, underperforming both the broader utility sector and the S&P 500. The decline came as a wave of selling pressure weighed on the stock, overshadowing bullish signals from the power grid.
Shares of the nuclear power giant fell to $233.93 by 1:56 p.m. EDT, with volume reaching 5.23 million shares. In comparison, the Utilities Select Sector SPDR Fund (NYSEARCA: XLU) slipped just 1.3%, while the SPDR S&P 500 ETF Trust (NYSEARCA: SPY) was little changed.
The selloff was amplified by a looming overhang of up to 5.12 million shares that could hit the market following the expiration of a lockup period tied to a June secondary offering. According to a June prospectus, selling shareholders offered 11 million shares at $281 each, with Constellation itself not receiving any proceeds. Underwriters also had a 30-day option to purchase an additional 1.35 million shares. Constellation did buy back 2 million shares from the underwriters at $279 per share, spending roughly $558 million, and still retains about $3.5 billion in buyback authority.
The eligible block of shares, which became available after June 30, represents about 1.4% of total outstanding shares but is nearly equivalent to a full day's trading volume for CEG. The filing warned that actual sales or even the mere concern of sales could depress the stock price.
Despite the selling pressure, the underlying power market fundamentals remain supportive for Constellation. PJM Interconnection, the largest grid operator in the U.S., was preparing for what could be new record highs in demand and prices as a heat wave drives up air-conditioning use and data center consumption. Spot wholesale prices in some PJM regions spiked near $300 per megawatt hour early Wednesday, far above the typical $25 to $40 off-peak range. PJM projected a demand peak of 166.3 gigawatts for Thursday, surpassing its 2006 record, and anticipated prices could rise above $1,000 per MWh near the Virginia data center hub.
Grid tightness is typically a bullish catalyst for generators with flexible plants, but CEG's stock movement on Wednesday was clearly dominated by the share overhang. Analysts at Citigroup lowered their price target on Constellation to $297 from $348, maintaining a Neutral rating, as reported by MT Newswires.
Constellation's long-term story remains centered on its nuclear assets. CEO Joe Dominguez recently highlighted that the company's four upstate New York nuclear plants provide nearly half of the state's clean power, and the company is pursuing license renewals for its Ginna and Nine Mile Point Unit 1 facilities through 2049. In its June 30 sustainability report, Constellation emphasized its position as the nation's largest portfolio of always-on, emissions-free generation assets.
However, near-term headwinds are pressing on the stock. Shares are now trading about 16% below the $279 price Constellation paid in its June block buyback and roughly 17% below the $281 public offering price. With the eligible block of shares representing a significant portion of daily trading volume, the market is likely to remain cautious until the overhang clears.
