Babcock (NYSE:BW) Shares Gap Up - What's Next?

Key Points

• Babcock shares gapped up sharply on Monday, opening at $16.70 after closing at $14.54 and later trading around $17.68 on heavy volume of more than 2.0 million shares.
• Analyst sentiment is mixed but leans positive: recent notes included a $19 price target and a couple of upgrades, while MarketBeat’s compiled view shows an average rating of "Hold" with a consensus price target of $11.00.
• The company recently reported mixed quarterly results, missing EPS estimates with a loss of $0.60 per share but beating revenue expectations at $214.41 million; insider buying by CEO Kenneth M. Young also stood out, even as a major shareholder sold a large block of shares.

Babcock (NYSE:BW - Get Free Report)'s share price gapped up before the market opened on Monday . The stock had previously closed at $14.54, but opened at $16.70. Babcock shares last traded at $17.6770, with a volume of 2,030,903 shares trading hands.

Analysts Set New Price Targets

BW has been the topic of several research analyst reports. Craig Hallum reissued a "buy" rating and issued a $19.00 price objective on shares of Babcock in a research note on Tuesday, March 17th. Wall Street Zen raised Babcock from a "hold" rating to a "buy" rating in a research note on Saturday, March 21st. Northland Securities initiated coverage on Babcock in a research note on Thursday, January 22nd. They issued an "outperform" rating and a $10.00 price objective on the stock. Weiss Ratings reissued a "sell (d-)" rating on shares of Babcock in a research note on Monday, April 20th. Finally, Zacks Research raised Babcock to a "hold" rating in a research note on Friday, January 23rd. Three investment 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's stock. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $11.00.

Babcock Stock Up 28.3%

The stock's 50 day moving average price is $14.62 and its 200-day moving average price is $9.57. The stock has a market capitalization of $2.53 billion, a P/E ratio of -34.38 and a beta of 1.08.

Babcock (NYSE:BW - Get Free Report) last released its quarterly earnings data on Monday, May 11th. The technology company reported ($0.60) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.03) by ($0.57). The firm had revenue of $214.41 million for the quarter, compared to analysts' expectations of $149.72 million. Analysts anticipate that Babcock will post 0.21 earnings per share for the current year.

Insider Activity at Babcock

In other news, CEO Kenneth M. Young bought 7,000 shares of the stock in a transaction on Wednesday, March 18th. The stock was bought at an average cost of $15.14 per share, for a total transaction of $105,980.00. Following the completion of the purchase, the chief executive officer directly owned 1,656,512 shares in the company, valued at approximately $25,079,591.68. The trade was a 0.42% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, major shareholder Brc Group Holdings, Inc. sold 1,155,382 shares of the firm's stock in a transaction that occurred on Wednesday, February 11th. The shares were sold at an average price of $9.00, for a total transaction of $10,398,438.00. The SEC filing for this sale provides additional information. 2.80% of the stock is owned by company insiders.

Institutional Investors Weigh In On Babcock

Several institutional investors have recently bought and sold shares of BW. Huntington National Bank boosted its stake in Babcock by 400,000.0% in 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. acquired a new stake in Babcock in the fourth quarter valued at approximately $25,000. Centiva Capital LP acquired a new stake in Babcock in the third quarter valued at approximately $31,000. Raymond James Financial Inc. boosted its stake in Babcock by 11,311.3% in the third quarter. Raymond James Financial Inc. now owns 12,096 shares of the technology company's stock valued at $35,000 after acquiring an additional 11,990 shares in the last quarter. Finally, Sender Co & Partners Inc. purchased a new position in shares of Babcock in the third quarter worth $50,000. 83.17% of the stock is currently owned by institutional investors and hedge funds.

Babcock Company Profile

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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