Babcock (NYSE:BW) Trading Down 7.2% - Time to Sell?

Key Points

• Shares fell 7.2% intraday to about $17, trading as low as $16.74 with only 550,145 shares changing hands (an ~86% drop from the average session volume of 3.92M).
• Babcock missed its quarter: EPS of ($0.05) vs. ($0.04) expected and revenue of $161.0M vs. $179.1M consensus, signaling weaker-than-expected results.
• Analyst views are mixed with a consensus rating of "Hold" and a $11.00 target, while insider activity is split—the CEO bought 7,000 shares at $15.14 but major shareholder BRC Group sold 1,155,382 shares.

Babcock (NYSE:BW - Get Free Report)'s share price fell 7.2% during mid-day trading on Monday . The company traded as low as $16.74 and last traded at $17.0360. 550,145 shares traded hands during trading, a decline of 86% from the average session volume of 3,918,368 shares. The stock had previously closed at $18.36.

Analyst Upgrades and Downgrades

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

Babcock Trading Down 6.7%

The firm's fifty day simple moving average is $13.17 and its 200 day simple moving average is $8.55. The company has a market cap of $2.33 billion, a price-to-earnings ratio of -31.72 and a beta of 1.09.

Babcock (NYSE:BW - Get Free Report) last announced its quarterly earnings data 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 for the quarter, compared to analyst estimates of $179.10 million.

Insider Buying and Selling at Babcock

In other Babcock news, CEO Kenneth M. Young purchased 7,000 shares of the business's stock in a transaction on Wednesday, March 18th. The shares were bought at an average cost of $15.14 per share, for a total transaction of $105,980.00. Following the completion of the purchase, the chief executive officer directly owned 1,656,512 shares in the company, valued at approximately $25,079,591.68. This represents a 0.42% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, major shareholder Brc Group Holdings, Inc. sold 1,155,382 shares of Babcock stock in a transaction dated Wednesday, February 11th. The stock was sold at an average price of $9.00, for a total value of $10,398,438.00. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 3.90% of the company's stock.

Hedge Funds Weigh In On Babcock

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Legal & General Group Plc acquired a new stake in Babcock during the third quarter worth approximately $14,086,000. Marshall Wace LLP boosted its holdings in shares of Babcock by 497.7% in the 3rd quarter. Marshall Wace LLP now owns 2,366,601 shares of the technology company's stock valued at $6,863,000 after buying an additional 1,970,656 shares in the last quarter. Vanguard Group Inc. grew its position in shares of Babcock by 54.3% in the 3rd quarter. Vanguard Group Inc. now owns 4,423,243 shares of the technology company's stock valued at $12,827,000 after buying an additional 1,556,692 shares during the last quarter. Thames Capital Management LLC acquired a new stake in Babcock during the 3rd quarter worth $4,033,000. Finally, Situational Awareness LP acquired a new stake in Babcock during the 4th quarter worth $8,584,000. 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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