Powell Industries (NASDAQ:POWL) Shares Down 8% – Time to Sell?

Powell Industries, Inc. (NASDAQ:POWL)’s stock price dropped 8% on Monday . The company traded as low as $214.00 and last traded at $213.6640. Approximately 201,083 shares changed hands during mid-day trading, a decline of 73% from the average session volume of 757,947 shares. The stock had previously closed at $232.21.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on POWL shares. Zacks Research lowered Powell Industries from a “strong-buy” rating to a “hold” rating in a research note on Monday, May 11th. Cantor Fitzgerald upped their target price on shares of Powell Industries from $160.00 to $320.00 and gave the stock a “neutral” rating in a report on Monday, May 11th. Weiss Ratings cut shares of Powell Industries from a “buy (b)” rating to a “buy (b-)” rating in a research report on Thursday, July 16th. Glj Research raised shares of Powell Industries from a “hold” rating to a “strong-buy” rating in a report on Tuesday, July 14th. Finally, JPMorgan Chase & Co. upped their price objective on shares of Powell Industries from $310.00 to $360.00 and gave the stock an “overweight” rating in a research note on Wednesday, May 6th. Two investment analysts have rated the stock with a Strong Buy rating, three have given a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, Powell Industries has a consensus rating of “Buy” and an average target price of $236.67.

Powell Industries Stock Down 7.4%

The firm has a fifty day moving average price of $270.49 and a 200 day moving average price of $221.16. The company has a market cap of $7.83 billion, a P/E ratio of 42.07, a PEG ratio of 3.03 and a beta of 1.13.

Powell Industries (NASDAQ:POWL) last released its quarterly earnings results on Monday, May 4th. The industrial products company reported $1.25 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.34 by ($0.09). The business had revenue of $296.62 million during the quarter, compared to the consensus estimate of $298.12 million. Powell Industries had a net margin of 16.51% and a return on equity of 28.61%. The business’s quarterly revenue was up 6.5% compared to the same quarter last year. During the same period in the prior year, the firm earned $3.81 earnings per share. On average, sell-side analysts anticipate that Powell Industries, Inc. will post 5.47 earnings per share for the current year.

Powell Industries Cuts Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, June 17th. Stockholders of record on Wednesday, May 20th were given a dividend of $0.09 per share. This represents a $0.36 dividend on an annualized basis and a dividend yield of 0.2%. The ex-dividend date was Wednesday, May 20th. Powell Industries’s dividend payout ratio is presently 7.05%.

Insider Buying and Selling at Powell Industries

In related news, VP William Marshall Mauney, Jr. sold 2,500 shares of the firm’s stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $323.69, for a total value of $809,225.00. Following the completion of the sale, the vice president owned 10,853 shares of the company’s stock, valued at $3,513,007.57. This trade represents a 18.72% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Brett Alan Cope sold 4,440 shares of the business’s stock in a transaction that occurred on Thursday, July 9th. The stock was sold at an average price of $241.55, for a total transaction of $1,072,482.00. Following the completion of the transaction, the chief executive officer owned 517,233 shares of the company’s stock, valued at $124,937,631.15. This trade represents a 0.85% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 55,088 shares of company stock valued at $16,070,066 over the last three months. Insiders own 2.20% of the company’s stock.

Hedge Funds Weigh In On Powell Industries

Several hedge funds have recently added to or reduced their stakes in the company. Royal Bank of Canada increased its position in Powell Industries by 1.5% in the first quarter. Royal Bank of Canada now owns 30,830 shares of the industrial products company’s stock worth $5,251,000 after purchasing an additional 461 shares during the period. NewEdge Advisors LLC boosted its stake in shares of Powell Industries by 7.9% in the 1st quarter. NewEdge Advisors LLC now owns 6,310 shares of the industrial products company’s stock valued at $1,075,000 after purchasing an additional 461 shares during the last quarter. Jones Financial Companies Lllp grew its position in shares of Powell Industries by 1,221.0% during the 1st quarter. Jones Financial Companies Lllp now owns 1,387 shares of the industrial products company’s stock worth $236,000 after buying an additional 1,282 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in shares of Powell Industries by 4.8% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 28,423 shares of the industrial products company’s stock worth $4,841,000 after buying an additional 1,311 shares during the period. Finally, JPMorgan Chase & Co. raised its stake in shares of Powell Industries by 6.2% during the second quarter. JPMorgan Chase & Co. now owns 31,116 shares of the industrial products company’s stock worth $6,548,000 after buying an additional 1,822 shares during the last quarter. Institutional investors own 89.77% of the company’s stock.

About Powell Industries

Powell Industries, Inc is an industrial electrical engineering company specializing in the design, manufacture and integration of customized power control and distribution solutions. The firm’s offerings range from medium‐voltage switchgear and power control centers to bus duct, motor control centers and specialty transformers. Powell also provides automation systems, protective relaying, metering, supervisory control and data acquisition (SCADA) platforms, and turnkey engineering services to help clients manage critical power infrastructure.

Serving the oil and gas, petrochemical, refining, utility, mining and industrial sectors, Powell’s products are engineered to meet demanding performance, safety and reliability requirements.