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

Babcock (NYSE:BW) shares gapped down before the market opened on Wednesday. The stock had previously closed at $5.91, but opened at $5.60. Babcock shares last traded at $5.6150, with a volume of 473,995 shares traded.

Wall Street Analyst Weigh In

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

Babcock Price Performance

The business has a fifty day moving average of $7.75 and a 200 day moving average of $12.76. The company has a debt-to-equity ratio of 4.21, a current ratio of 1.45 and a quick ratio of 1.33. The stock has a market cap of $817.05 million, a PE ratio of -30.42 and a beta of 1.17.

Babcock (NYSE:BW) last posted its quarterly earnings data on Monday, August 10th. The technology company reported $0.04 earnings per share (EPS) for the quarter, topping the consensus estimate 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 the consensus estimate of $196.95 million. Sell-side analysts anticipate that Babcock will post 0.27 earnings per share for the current year.

Insider Activity

In related news, Director Philip Moeller purchased 5,000 shares of the company’s stock in a transaction that occurred on Thursday, August 13th. The stock was acquired at an average price of $9.50 per share, for a total transaction of $47,500.00. Following the completion of the purchase, the director owned 240,809 shares in the company, valued at approximately $2,287,685.50. This represents a 2.12% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 2.80% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in BW. Royal Bank of Canada lifted its stake in Babcock by 57.3% in the first quarter. Royal Bank of Canada now owns 1,785 shares of the technology company’s stock valued at $26,000 after buying an additional 650 shares during the last quarter. Bank of New York Mellon Corp grew its position in shares of Babcock by 3.0% during the first quarter. Bank of New York Mellon Corp now owns 55,733 shares of the technology company’s stock worth $819,000 after acquiring an additional 1,604 shares during the last quarter. Integrated Wealth Concepts LLC bought a new position in shares of Babcock during the second quarter worth about $25,000. Chicago Partners Investment Group LLC increased its holdings in shares of Babcock by 30.6% in the 1st quarter. Chicago Partners Investment Group LLC now owns 13,057 shares of the technology company’s stock worth $208,000 after acquiring an additional 3,057 shares during the period. Finally, Rockefeller Capital Management L.P. acquired a new stake in shares of Babcock in the 4th quarter worth about $25,000. 83.17% of the stock is owned by institutional investors and hedge funds.

Babcock Company Profile

Babcock & Wilcox Enterprises, Inc (NYSE: BW) is an energy and environmental technology company that provides products and services for power generation, industrial processing and emissions control. Its portfolio includes boilers, steam-generation equipment, thermal technologies, and systems designed to reduce air pollutants and improve energy efficiency.

The company also develops technologies for waste-to-energy, renewable energy, hydrogen production and carbon management. Its solutions are used by utilities, industrial operators, municipal organizations and other customers seeking to generate energy from conventional or alternative fuels while managing environmental impacts.

Babcock & Wilcox traces its roots to the Babcock & Wilcox Company, founded in the 19th century.