Babcock (NYSE:BW) Shares Pass Above 200-Day Moving Average - Should You Sell?

Key Points

• Babcock shares (NYSE:BW) have surpassed their 200-day moving average of $1.24, reaching a high of $3.47 during trading.
• Analysts have given mixed ratings, with one having a Strong Buy rating, while others issued sell ratings, resulting in a consensus rating of "Moderate Buy" and a target price of $3.00.
• Insider activities indicate confidence in the company, as CFO Cameron M. Frymyer and CEO Kenneth M. Young each acquired 20,000 shares recently, raising their holdings significantly.

Shares of Babcock (NYSE:BW - Get Free Report) passed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $1.24 and traded as high as $3.47. Babcock shares last traded at $3.14, with a volume of 4,044,636 shares changing hands.

Analyst Ratings Changes

Several research firms recently commented on BW. Weiss Ratings reiterated a "sell (d-)" rating on shares of Babcock in a research report on Saturday, September 27th. Craig Hallum raised shares of Babcock from a "hold" rating to a "strong-buy" rating in a report on Thursday, August 21st. Finally, Wall Street Zen lowered shares of Babcock from a "hold" rating to a "sell" rating in a research report on Saturday, August 16th. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, Babcock currently has a consensus rating of "Moderate Buy" and a consensus target price of $3.00.

Babcock Trading Up 9.8%

The company has a market capitalization of $317.45 million, a price-to-earnings ratio of -1.85 and a beta of 1.87. The company's 50 day simple moving average is $2.15 and its 200-day simple moving average is $1.24.

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

Insider Buying and Selling at Babcock

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

Institutional Investors Weigh In On Babcock

Hedge funds have recently modified their holdings of the stock. Two Sigma Advisers LP grew its holdings in Babcock by 106.7% in the fourth quarter. Two Sigma Advisers LP now owns 26,734 shares of the technology company's stock valued at $44,000 after purchasing an additional 13,800 shares during the period. Quinn Opportunity Partners LLC boosted its holdings in shares of Babcock by 200.0% in the 2nd quarter. Quinn Opportunity Partners LLC now owns 90,000 shares of the technology company's stock valued at $87,000 after purchasing an additional 60,000 shares during the last quarter. Nomura Holdings Inc. grew its stake in shares of Babcock by 58.2% during the 2nd quarter. Nomura Holdings Inc. now owns 127,382 shares of the technology company's stock valued at $123,000 after buying an additional 46,884 shares during the period. Two Sigma Investments LP increased its holdings in shares of Babcock by 181.1% during the 4th quarter. Two Sigma Investments LP now owns 97,155 shares of the technology company's stock worth $159,000 after buying an additional 62,598 shares during the last quarter. Finally, Equitec Proprietary Markets LLC increased its holdings in shares of Babcock by 28.3% during the 1st quarter. Equitec Proprietary Markets LLC now owns 327,365 shares of the technology company's stock worth $220,000 after buying an additional 72,265 shares during the last quarter. 83.17% of the stock is owned by institutional investors and hedge funds.

About Babcock

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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