Babcock (NYSE:BW) Sees Large Volume Increase - Here's Why

Key Points

• Unusually high trading activity: About 2,927,295 shares traded mid-day (though 21% below the prior session), with the stock last trading near $11.14 versus a prior close of $13.05.
• Earnings and revenue miss: Babcock reported Q EPS of ($0.05) versus ($0.04) expected and revenue of $161.0 million against $179.1 million estimated.
• Analyst stance and insider selling: The consensus rating is a "Hold" with an $8 price target, while major shareholder Brc Group sold 1,155,382 shares at an average of $9.00 (≈$10.4M).

Babcock (NYSE:BW - Get Free Report) shares saw unusually-high trading volume on Friday . Approximately 2,927,295 shares traded hands during mid-day trading, a decline of 21% from the previous session's volume of 3,693,928 shares.The stock last traded at $11.1380 and had previously closed at $13.05.

Analysts Set New Price Targets

A number of research analysts have commented on the company. Zacks Research upgraded Babcock to a "hold" rating in a research note on Friday, January 23rd. Weiss Ratings reiterated a "sell (d-)" rating on shares of Babcock in a research note on Wednesday, January 21st. Finally, Northland Securities began coverage on Babcock in a report on Thursday, January 22nd. They set an "outperform" rating and a $10.00 target price on the stock. Three analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Babcock has a consensus rating of "Hold" and a consensus price target of $8.00.

Babcock Stock Performance

The firm has a market capitalization of $1.16 billion, a price-to-earnings ratio of -19.42 and a beta of 1.54. The stock's fifty day moving average is $9.51 and its two-hundred day moving average is $6.11.

Babcock (NYSE:BW - Get Free Report) last issued its quarterly earnings data on Wednesday, March 4th. The technology company reported ($0.05) 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 analysts' expectations of $179.10 million.

Insider Activity at Babcock

In related news, major shareholder Brc Group Holdings, Inc. sold 1,155,382 shares of the business's stock in a transaction dated Wednesday, February 11th. The stock was sold at an average price of $9.00, for a total value of $10,398,438.00. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Company insiders own 3.90% of the company's stock.

Institutional Investors Weigh In On Babcock

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Quinn Opportunity Partners LLC boosted its stake in shares of Babcock by 200.0% during the 2nd quarter. Quinn Opportunity Partners LLC now owns 90,000 shares of the technology company's stock valued at $87,000 after buying an additional 60,000 shares during the last quarter. Marshall Wace LLP increased its stake in shares of Babcock by 93.0% in the second quarter. Marshall Wace LLP now owns 395,945 shares of the technology company's stock worth $380,000 after buying an additional 190,814 shares during the last quarter. Gendell Jeffrey L increased its stake in shares of Babcock by 49.2% in the second quarter. Gendell Jeffrey L now owns 2,574,848 shares of the technology company's stock worth $2,477,000 after buying an additional 849,602 shares during the last quarter. Nomura Holdings Inc. raised its holdings in Babcock by 58.2% in the second quarter. Nomura Holdings Inc. now owns 127,382 shares of the technology company's stock valued at $123,000 after acquiring an additional 46,884 shares in the last quarter. Finally, Shikiar Asset Management Inc. bought a new position in Babcock during the 3rd quarter valued at $138,000. 83.17% of the stock is currently owned by hedge funds and other 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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