Babcock (NYSE:BW) Shares Down 7.5% - Should You Sell?

Key Points

• Shares down 7.5% — Babcock fell to $14.4560 intraday on Thursday with about 881,723 shares traded, roughly 79% below its average daily volume; market cap is about $1.94 billion.
• Analysts are mixed: three Buys, two Holds and one Sell, and MarketBeat's consensus rating is a "Hold" with a consensus price target of $11, below the current share price.
• The company missed quarterly estimates (EPS $(0.05) vs. $(0.04) expected; revenue $161M vs. $179.1M expected), while the CEO bought 7,000 shares at ~$15.14 and a major shareholder sold 1.155M shares, signaling mixed insider activity.

Babcock (NYSE:BW - Get Free Report) dropped 7.5% during mid-day trading on Thursday . The stock traded as low as $14.44 and last traded at $14.4560. Approximately 881,723 shares traded hands during mid-day trading, a decline of 79% from the average daily volume of 4,187,515 shares. The stock had previously closed at $15.63.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on BW. Weiss Ratings reiterated a "sell (d-)" rating on shares of Babcock in a report on Wednesday, January 21st. Craig Hallum restated a "buy" rating and issued a $19.00 price objective on shares of Babcock in a report on Tuesday, March 17th. Zacks Research raised Babcock to a "hold" rating in a research report on Friday, January 23rd. 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. Finally, Wall Street Zen upgraded Babcock from a "hold" rating to a "buy" rating in a research report on Saturday, March 21st. Three analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $11.00.

Babcock Trading Down 8.3%

The stock has a market cap of $1.94 billion, a price-to-earnings ratio of -26.50 and a beta of 1.54. The stock's 50-day moving average price is $10.74 and its 200-day moving average price is $6.89.

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

Insiders Place Their Bets

In other Babcock news, CEO Kenneth M. Young acquired 7,000 shares of the company's stock in a transaction dated Wednesday, March 18th. The shares were bought at an average cost of $15.14 per share, with a total value of $105,980.00. Following the purchase, the chief executive officer directly owned 1,656,512 shares of the company's stock, valued at $25,079,591.68. This trade represents a 0.42% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, 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 SEC filing for this sale provides additional information. Corporate insiders own 3.90% of the company's stock.

Institutional Investors Weigh In On Babcock

Hedge funds have recently added to or reduced their stakes in the business. Legal & General Group Plc boosted its holdings in shares of Babcock by 10.8% during the 4th quarter. Legal & General Group Plc now owns 5,380,991 shares of the technology company's stock worth $34,115,000 after buying an additional 523,776 shares in the last quarter. Gendell Jeffrey L increased its stake in shares of Babcock by 6.2% in the 4th quarter. Gendell Jeffrey L now owns 5,046,068 shares of the technology company's stock valued at $31,992,000 after acquiring an additional 293,245 shares in the last quarter. Vanguard Group Inc. lifted its position in shares of Babcock by 54.3% during the 3rd 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 period. Marshall Wace LLP boosted its stake in Babcock by 42.4% during the fourth quarter. Marshall Wace LLP now owns 3,371,134 shares of the technology company's stock worth $21,373,000 after acquiring an additional 1,004,533 shares in the last quarter. Finally, UBS Group AG boosted its stake in Babcock by 337.1% during the fourth quarter. UBS Group AG now owns 1,445,218 shares of the technology company's stock worth $9,163,000 after acquiring an additional 1,114,593 shares in the last quarter. 83.17% of the stock is currently 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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