Babcock (NYSE:BW) Shares Down 6.3% – Should You Sell?

Babcock (NYSE:BW)’s stock price traded down 6.3% during trading on Wednesday. The company traded as low as $6.94 and last traded at $6.8750. Approximately 479,346 shares traded hands during mid-day trading, a decline of 88% from the average daily volume of 4,099,375 shares. The stock had previously closed at $7.34.

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on the company. Wall Street Zen lowered Babcock from a “buy” rating to a “hold” rating in a research note on Sunday, August 23rd. Needham & Company LLC initiated coverage on shares of Babcock in a report on Monday, August 31st. They issued a “buy” rating and a $20.00 target price for the company. Finally, Weiss Ratings raised shares of Babcock from a “sell (d-)” rating to a “sell (d+)” rating in a research note on Tuesday, August 11th. Four investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $15.40.

Babcock Stock Performance

The firm has a market cap of $914.47 million, a PE ratio of -34.10 and a beta of 1.19. The company has a current ratio of 1.45, a quick ratio of 1.33 and a debt-to-equity ratio of 4.21. The stock’s 50 day moving average price is $8.43 and its 200 day moving average price is $13.18.

Babcock (NYSE:BW) last issued its quarterly earnings data on Monday, August 10th. The technology company reported $0.04 EPS for the quarter, topping analysts’ consensus estimates of $0.02 by $0.02. Babcock had a negative return on equity of 4.51% and a negative net margin of 2.17%.The company had revenue of $319.72 million for the quarter, compared to analysts’ expectations of $196.95 million. As a group, equities analysts forecast that Babcock will post 0.27 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Philip Moeller bought 5,000 shares of Babcock stock in a transaction dated Thursday, August 13th. The shares were acquired at an average cost of $9.50 per share, with a total value of $47,500.00. Following the completion of the transaction, the director owned 240,809 shares in the company, valued at approximately $2,287,685.50. This trade represents a 2.12% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. 2.80% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Babcock

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Huntington National Bank grew its stake in shares of Babcock by 400,000.0% during the fourth quarter. Huntington National Bank now owns 4,001 shares of the technology company’s stock valued at $25,000 after acquiring an additional 4,000 shares in the last quarter. Rockefeller Capital Management L.P. purchased a new position in Babcock in the fourth quarter valued at about $25,000. Integrated Wealth Concepts LLC acquired a new stake in Babcock during the 2nd quarter valued at approximately $25,000. Royal Bank of Canada raised its position in shares of Babcock by 57.3% in the 1st quarter. Royal Bank of Canada now owns 1,785 shares of the technology company’s stock valued at $26,000 after purchasing an additional 650 shares in the last quarter. Finally, NewEdge Advisors LLC purchased a new position in shares of Babcock during the 1st quarter valued at approximately $162,000. Hedge funds and other institutional investors own 83.17% of the company’s stock.

About Babcock

Babcock & Wilcox Enterprises, Inc (NYSE: BW) is an energy and environmental technology company that provides equipment, technologies and services for power generation and industrial applications. The company serves utilities, industrial operators and other customers seeking to generate energy, improve operating efficiency and reduce emissions.

Its offerings include steam generation systems, boilers, replacement parts, maintenance and engineering services, as well as technologies for controlling air pollution and managing solid waste.