Babcock (NYSE:BW) Stock Price Down 8.9% - Time to Sell?

Key Points

• Babcock shares fell 8.9% on Friday, trading as low as $10.13 amid much lighter-than-normal volume. The stock closed below its prior level after recent weakness.
• Analyst sentiment is mixed but cautious: Northland Securities set a $23 price target, while Wall Street Zen downgraded the stock to hold and Weiss Ratings reiterated a sell rating. The consensus rating is currently Hold with an average target of $14.25.
• The company’s latest earnings were weak on profitability, with EPS of -$0.60 versus expectations of -$0.03, even though revenue came in above estimates. Institutional investors still hold a large stake, with 83.17% of shares owned by institutions and hedge funds.

Shares of Babcock (NYSE:BW - Get Free Report) dropped 8.9% during trading on Friday . The company traded as low as $10.13 and last traded at $10.0350. Approximately 235,111 shares were traded during mid-day trading, a decline of 94% from the average session volume of 3,864,232 shares. The stock had previously closed at $11.01.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on BW. Northland Securities set a $23.00 price target on Babcock in a report on Tuesday, May 12th. Wall Street Zen lowered Babcock from a "buy" rating to a "hold" rating in a research report on Saturday, May 16th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Babcock in a research note on Friday, July 17th. Three research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $14.25.

Babcock Trading Down 6.4%

The stock has a 50-day simple moving average of $15.21 and a 200-day simple moving average of $13.50. The company has a market cap of $1.53 billion, a price-to-earnings ratio of -11.68 and a beta of 1.16.

Babcock (NYSE:BW - Get Free Report) last issued its quarterly earnings results on Monday, May 11th. The technology company reported ($0.60) EPS for the quarter, missing analysts' consensus estimates of ($0.03) by ($0.57). The firm had revenue of $214.41 million during the quarter, compared to the consensus estimate of $149.72 million. As a group, research analysts expect that Babcock will post 0.31 EPS for the current fiscal year.

Institutional Trading of Babcock

A number of institutional investors have recently made changes to their positions in BW. Situational Awareness LP acquired a new position in shares of Babcock during the fourth quarter valued at approximately $8,584,000. UBS Group AG raised its holdings 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 purchasing an additional 1,114,593 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in Babcock in the fourth quarter worth approximately $569,000. Palumbo Wealth Management LLC boosted its stake in Babcock by 38.1% during the 4th quarter. Palumbo Wealth Management LLC now owns 297,681 shares of the technology company's stock valued at $1,887,000 after purchasing an additional 82,118 shares in the last quarter. Finally, Covestor Ltd boosted its stake in Babcock by 25.2% during the 4th quarter. Covestor Ltd now owns 175,127 shares of the technology company's stock valued at $1,110,000 after purchasing an additional 35,262 shares in the last quarter. 83.17% of the stock is 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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