Babcock (NYSE:BW) Shares Pass Above 200-Day Moving Average - Here's Why

Key Points

• Babcock's shares surpassed their 200-day moving average during trading, reaching a high of $3.97 before closing at $3.76.
• Analysts have mixed ratings on Babcock, with one upgrading it to a strong-buy and another downgrading it to a sell, resulting in an overall average rating of moderate buy.
• Company insiders, including the CEO and CFO, have recently purchased shares, indicating increased confidence in the company's future prospects.

Babcock (NYSE:BW - Get Free Report) crossed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $1.35 and traded as high as $3.97. Babcock shares last traded at $3.76, with a volume of 1,979,065 shares.

Analyst Ratings Changes

Several analysts have commented on BW shares. Wall Street Zen downgraded Babcock from a "hold" rating to a "sell" rating in a research note on Saturday, August 16th. Craig Hallum raised Babcock from a "hold" rating to a "strong-buy" rating in a research note on Thursday, August 21st. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Babcock in a research note on Wednesday, October 8th. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Babcock presently has an average rating of "Moderate Buy" and an average target price of $3.00.

Babcock Trading Up 5.8%

The firm has a market capitalization of $379.63 million, a PE ratio of -2.21 and a beta of 1.87. The business has a 50 day moving average price of $2.45 and a 200-day moving average price of $1.35.

Babcock (NYSE:BW - Get Free Report) last released its quarterly earnings results on Monday, August 11th. The technology company reported ($0.10) earnings per share for the quarter, missing analysts' consensus estimates of ($0.08) by ($0.02). The company had revenue of $144.10 million during the quarter, compared to analyst estimates of $182.07 million.

Insiders Place Their Bets

In other news, CFO Cameron M. Frymyer purchased 20,000 shares of the business's stock in a transaction dated Tuesday, August 19th. The stock was acquired at an average price of $1.55 per share, with a total value of $31,000.00. Following the purchase, the chief financial officer directly owned 153,805 shares of the company's stock, valued at $238,397.75. This represents a 14.95% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Kenneth M. Young acquired 20,000 shares of the firm's stock in a transaction that occurred on Monday, August 18th. The stock was acquired at an average price of $1.51 per share, for a total transaction of $30,200.00. Following the completion of the transaction, the chief executive officer directly owned 261,745 shares in the company, valued at approximately $395,234.95. This represents a 8.27% increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last 90 days, insiders bought 59,347 shares of company stock valued at $99,803. Company insiders own 3.90% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Russell Investments Group Ltd. grew its holdings in Babcock by 1.3% during the 1st quarter. Russell Investments Group Ltd. now owns 1,724,713 shares of the technology company's stock valued at $1,160,000 after buying an additional 22,452 shares during the last quarter. Heartland Advisors Inc. lifted its position in shares of Babcock by 2.7% in the first quarter. Heartland Advisors Inc. now owns 1,411,000 shares of the technology company's stock valued at $949,000 after acquiring an additional 37,500 shares in the last quarter. Brightline Capital Management LLC lifted its position in shares of Babcock by 2.6% in the first quarter. Brightline Capital Management LLC now owns 1,550,000 shares of the technology company's stock valued at $1,042,000 after acquiring an additional 40,000 shares in the last quarter. Nomura Holdings Inc. lifted its position in shares of 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. purchased a new stake in shares of Babcock in the third quarter valued at $138,000. 83.17% of the stock is currently owned by institutional investors and hedge funds.

Babcock Company Profile

Babcock & Wilcox Enterprises, Inc engages in the provision of fossil and renewable power generation and environmental equipment. It operates through the following segments: B&W Renewable, B&W Environmental, and B&W Thermal. The B&W Renewable segment supports a circular economy, diverting waste from landfills to use for power generation and replacing fossil fuels, while recovering metals and reducing emissions.

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