Babcock (NYSE:BW) Trading 6.2% Higher - Time to Buy?

Key Points

• Babcock shares rose about 6.2% on Monday to roughly $15.40 (intraday high $15.86) on volume well below the stock's average session trading.
• Analyst views are mixed—three Buy, two Hold and one Sell—leaving an average rating of "Hold" with an average price target of $11, though individual targets range as high as $19.
• The company recently missed quarterly EPS and revenue estimates, trades at a negative P/E, and saw a major shareholder sell 1.155M shares at $9 while the CEO bought 7,000 shares at $15.14; institutional investors own about 83% of the stock.

Babcock (NYSE:BW - Get Free Report)'s share price traded up 6.2% during mid-day trading on Monday . The company traded as high as $15.86 and last traded at $15.3990. 1,079,376 shares were traded during trading, a decline of 72% from the average session volume of 3,908,471 shares. The stock had previously closed at $14.50.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on BW shares. Northland Securities started coverage on shares of Babcock in a research note on Thursday, January 22nd. They issued an "outperform" rating and a $10.00 price objective for the company. Zacks Research raised shares of Babcock to a "hold" rating in a research note on Friday, January 23rd. Craig Hallum restated a "buy" rating and issued a $19.00 price target on shares of Babcock in a report on Tuesday, March 17th. Wall Street Zen upgraded shares of Babcock from a "hold" rating to a "buy" rating in a report on Saturday, March 21st. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Babcock in a research report on Monday, April 20th. Three investment 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. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $11.00.

Babcock Trading Up 5.1%

The business has a fifty day simple moving average of $13.78 and a 200 day simple moving average of $9.00. The stock has a market capitalization of $2.07 billion, a P/E ratio of -28.23 and a beta of 1.09.

Babcock (NYSE:BW - Get Free Report) last posted its earnings results on Wednesday, March 4th. The technology company reported ($0.05) earnings per share for the quarter, missing analysts' consensus estimates of ($0.04) by ($0.01). The firm had revenue of $161.00 million during the quarter, compared to the consensus estimate of $179.10 million. As a group, research analysts forecast that Babcock will post 0.21 earnings per share for the current year.

Insider Buying and Selling at Babcock

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

Institutional Investors Weigh In On Babcock

Several institutional investors and hedge funds have recently added to or reduced their stakes in BW. Wesbanco Bank Inc. bought a new position in shares of Babcock during the 1st quarter worth approximately $294,000. Cannon Global Investment Management LLC bought a new position in shares of Babcock in the first quarter valued at approximately $360,000. Rockefeller Capital Management L.P. bought a new position in shares of Babcock in the fourth quarter valued at approximately $25,000. XTX Topco Ltd increased its position in shares of Babcock by 231.3% during the fourth quarter. XTX Topco Ltd now owns 260,360 shares of the technology company's stock valued at $1,651,000 after acquiring an additional 181,768 shares during the last quarter. Finally, SummitTX Capital L.P. bought a new stake in Babcock during the fourth quarter worth $84,000. Hedge funds and other 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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