Babcock (NYSE:BW) Hits New 12-Month High - Should You Buy?

Key Points

• Babcock's stock reached a new 52-week high of $18.66 on Tuesday and was last trading around $18.26 on volume of roughly 124,731 shares.
• Analysts are mixed with an average MarketBeat rating of "Hold" and an average target price of $11.00—three Buy, two Hold and one Sell recommendation.
• The company recently missed quarterly EPS and revenue estimates (EPS $(0.05) vs. $(0.04) est.; revenue $161M vs. $179.1M), while insiders and institutions showed divergent activity: a major shareholder sold 1,155,382 shares at $9, the CEO purchased 7,000 shares at $15.14, and institutional investors own roughly 83% of the stock.

Babcock (NYSE:BW - Get Free Report)'s stock price reached a new 52-week high during trading on Tuesday . The stock traded as high as $18.66 and last traded at $18.2610, with a volume of 124731 shares traded. The stock had previously closed at $18.24.

Analysts Set New Price Targets

BW has been the subject of several recent research reports. Craig Hallum reissued a "buy" rating and set a $19.00 target price on shares of Babcock in a research report on Tuesday, March 17th. Zacks Research raised shares of Babcock to a "hold" rating in a research report on Friday, January 23rd. Wall Street Zen raised shares of Babcock from a "hold" rating to a "buy" rating in a research report on Saturday, March 21st. Northland Securities initiated coverage on shares of Babcock in a research report on Thursday, January 22nd. They set an "outperform" rating and a $10.00 target price for the company. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Babcock in a research report on Wednesday, January 21st. Three research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Babcock has an average rating of "Hold" and an average target price of $11.00.

Babcock Stock Down 0.7%

The firm's 50-day moving average price is $12.48 and its 200 day moving average price is $8.12. The company has a market capitalization of $2.46 billion, a P/E ratio of -33.53 and a beta of 1.09.

Babcock (NYSE:BW - Get Free Report) last issued its quarterly earnings data on Wednesday, March 4th. The technology company reported ($0.05) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.04) by ($0.01). The business had revenue of $161.00 million for the quarter, compared to analyst estimates of $179.10 million.

Insider Transactions at Babcock

In other Babcock news, major shareholder Brc Group Holdings, Inc. sold 1,155,382 shares of the company's stock in a transaction dated Wednesday, February 11th. The shares were sold at an average price of $9.00, for a total value of $10,398,438.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Kenneth M. Young acquired 7,000 shares of Babcock stock in a transaction on Wednesday, March 18th. The stock was purchased at an average cost of $15.14 per share, with a total value of $105,980.00. Following the completion of the transaction, the chief executive officer directly owned 1,656,512 shares in the company, valued at $25,079,591.68. This represents a 0.42% increase in their position. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 3.90% of the company's stock.

Institutional Investors Weigh In On Babcock

A number of institutional investors have recently added to or reduced their stakes in BW. Legal & General Group Plc bought a new stake in Babcock in the 3rd quarter worth about $14,086,000. Marshall Wace LLP boosted its stake in Babcock by 497.7% in the third quarter. Marshall Wace LLP now owns 2,366,601 shares of the technology company's stock valued at $6,863,000 after acquiring an additional 1,970,656 shares during the last quarter. Vanguard Group Inc. boosted its stake in Babcock by 54.3% in the third quarter. Vanguard Group Inc. now owns 4,423,243 shares of the technology company's stock valued at $12,827,000 after acquiring an additional 1,556,692 shares during the last quarter. Thames Capital Management LLC purchased a new position in Babcock in the third quarter valued at about $4,033,000. Finally, Situational Awareness LP purchased a new position in Babcock in the fourth quarter valued at about $8,584,000. 83.17% of the stock is owned by institutional investors.

About Babcock

Babcock & Wilcox Enterprises, Inc NYSE: BW is a specialized provider of energy and environmental technologies and services serving power generation and heavy industrial markets. The company designs, manufactures and maintains critical components and systems that support the safe and efficient operation of both fossil-fuel and renewable power facilities. Its core offerings include industrial and utility boilers, environmental control systems for emissions reduction, and aftermarket support services ranging from inspection and maintenance to spare parts management.

In addition to its boiler and emissions control portfolio, Babcock & Wilcox Enterprises delivers lifecycle solutions aimed at enhancing plant performance and compliance.

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