Babcock (NYSE:BW) Stock Price Down 7.8% - Here's What Happened

Key Points

• Babcock shares fell 7.8% to $8.40 in mid-day trading, with volume down 47% from the average session.
• Analysts maintain a consensus “Hold” rating and an average price target of $14.25, though ratings range from Buy to Sell.
• The company exceeded quarterly expectations, reporting $0.04 EPS versus $0.02 expected and revenue of $319.69 million versus $196.95 million; director Philip D. Moeller also purchased 5,000 shares.

Babcock (NYSE:BW - Get Free Report)'s stock price fell 7.8% during mid-day trading on Thursday . The stock traded as low as $8.30 and last traded at $8.40. Approximately 2,162,727 shares were traded during mid-day trading, a decline of 47% from the average session volume of 4,052,895 shares. The stock had previously closed at $9.11.

Wall Street Analyst Weigh In

BW has been the subject of a number of research reports. Northland Securities set a $23.00 price objective on Babcock in a research note on Tuesday, May 12th. Weiss Ratings raised Babcock from a "sell (d-)" rating to a "sell (d+)" rating in a research report on Tuesday, August 11th. Finally, Wall Street Zen upgraded Babcock from a "hold" rating to a "buy" rating in a report on Saturday, August 15th. Three research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Babcock presently has a consensus rating of "Hold" and an average target price of $14.25.

Babcock Trading Down 7.8%

The company has a quick ratio of 1.33, a current ratio of 1.45 and a debt-to-equity ratio of 4.21. The company has a market capitalization of $1.25 billion, a P/E ratio of -46.66 and a beta of 1.21. The firm's 50-day moving average price is $11.77 and its 200 day moving average price is $13.62.

Babcock (NYSE:BW - Get Free Report) last released its quarterly earnings results on Monday, August 10th. The technology company reported $0.04 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.02 by $0.02. The business had revenue of $319.69 million during the quarter, compared to the consensus estimate of $196.95 million. Babcock had a negative return on equity of 4.51% and a negative net margin of 2.17%. As a group, equities research analysts predict that Babcock will post 0.3 earnings per share for the current year.

Insider Buying and Selling

In related news, Director Philip D. Moeller purchased 5,000 shares of the stock in a transaction that occurred on Thursday, August 13th. The stock was acquired at an average cost of $9.50 per share, with a total value of $47,500.00. Following the transaction, the director owned 240,809 shares of the company's stock, valued at $2,287,685.50. This represents a 2.12% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 2.80% of the company's stock.

Institutional Trading of Babcock

Several institutional investors have recently made changes to their positions in the company. Legal & General Group Plc boosted its stake in shares of Babcock by 10.8% in 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 during the last quarter. Gendell Jeffrey L increased its position in shares of Babcock by 6.2% during the fourth 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 during the last quarter. Vanguard Group Inc. increased its position in shares of Babcock by 54.3% during the third 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 last quarter. Marshall Wace LLP lifted its holdings 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 during the period. Finally, Arrowstreet Capital Limited Partnership lifted its holdings in Babcock by 777.3% during the first quarter. Arrowstreet Capital Limited Partnership now owns 2,974,324 shares of the technology company's stock worth $43,693,000 after acquiring an additional 2,635,304 shares during the period. Institutional investors own 83.17% of the company's stock.

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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