Babcock (NYSE:BW) Upgraded at Wall Street Zen

Key Points

• Wall Street Zen upgraded Babcock from “hold” to “buy,” although the broader analyst consensus remains “hold,” with an average price target of $14.25.
• Babcock’s latest quarterly results beat expectations, reporting EPS of $0.04 versus $0.02 expected and revenue of approximately $319.7 million versus $197.0 million forecast.
• The stock recently rose 10.5%, supported by institutional interest and insider buying, but shares remain below their 50-day and 200-day moving averages, while elevated put-option activity signals continued bearish hedging or speculation.

Babcock (NYSE:BW - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued on Saturday.

Other equities analysts have also recently issued reports about the company. Northland Securities set a $23.00 price objective on Babcock in a report on Tuesday, May 12th. Weiss Ratings raised Babcock from a "sell (d-)" rating to a "sell (d+)" rating in a research note on Tuesday. Three analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Hold" and an average price target of $14.25.

Babcock Stock Up 10.5%

BW opened at $10.33 on Friday. The business's fifty day simple moving average is $12.13 and its 200 day simple moving average is $13.62. Babcock has a 52 week low of $1.40 and a 52 week high of $22.03. The company has a quick ratio of 0.87, a current ratio of 1.45 and a debt-to-equity ratio of 4.21. The stock has a market cap of $1.54 billion, a PE ratio of -57.38 and a beta of 1.21.

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

Insiders Place Their Bets

In other Babcock news, Director Philip D. Moeller purchased 5,000 shares of the business's stock in a transaction on Thursday, August 13th. The stock was acquired at an average cost of $9.50 per share, for a total transaction of $47,500.00. Following the completion of the transaction, the director directly owned 240,809 shares in the company, valued at approximately $2,287,685.50. This represents a 2.12% increase in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. 2.80% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Legal & General Group Plc boosted its holdings in Babcock by 10.8% during the 4th quarter. Legal & General Group Plc now owns 5,380,991 shares of the technology company's stock valued at $34,115,000 after acquiring an additional 523,776 shares during the period. Gendell Jeffrey L grew its position in Babcock by 6.2% during the 4th quarter. Gendell Jeffrey L now owns 5,046,068 shares of the technology company's stock worth $31,992,000 after acquiring an additional 293,245 shares during the last quarter. Vanguard Group Inc. increased its stake in Babcock by 54.3% in the 3rd quarter. Vanguard Group Inc. now owns 4,423,243 shares of the technology company's stock worth $12,827,000 after purchasing an additional 1,556,692 shares during the period. Marshall Wace LLP lifted its position in Babcock by 42.4% in the fourth quarter. Marshall Wace LLP now owns 3,371,134 shares of the technology company's stock valued at $21,373,000 after purchasing an additional 1,004,533 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership lifted its position in Babcock by 777.3% in the first quarter. Arrowstreet Capital Limited Partnership now owns 2,974,324 shares of the technology company's stock valued at $43,693,000 after purchasing an additional 2,635,304 shares during the last quarter. Hedge funds and other institutional investors own 83.17% of the company's stock.

More Babcock News

Here are the key news stories impacting Babcock this week:

• Positive Sentiment: A fresh institutional disclosure placed Babcock & Wilcox among several “second-derivative” artificial-intelligence plays attracting investor attention. The disclosure appears to be the main catalyst behind the stock’s Friday strength, although the available report does not provide details on the institution or position size. AXT, T1 Energy and Babcock & Wilcox Soaring Higher On Friday
• Positive Sentiment: Insider activity was supportive after the company reported CEO buying on August 13. Investors may interpret the purchase as a signal that management sees value in the shares following their recent weakness. CEO’s Bold Insider Move Signals Growing Confidence at Babcock & Wilcox
• Positive Sentiment: Babcock’s latest quarterly results exceeded expectations, with earnings of $0.04 per share versus a $0.02 consensus estimate and revenue of approximately $319.7 million versus an expected $197.0 million. Northland Securities also issued a Buy rating, adding to the constructive sentiment. Babcock & Wilcox Gets a Buy from Northland Securities
• Neutral Sentiment: The stock’s trading volume was substantially above its average, indicating strong investor interest. Shares remain below their 50-day and 200-day moving averages, suggesting that the broader trend is still weak despite the recent rally.
• Negative Sentiment: Investors bought 9,536 put options, roughly 85% above average put volume. This may reflect increased bearish speculation or hedging demand.
• Negative Sentiment: Northland Securities slightly reduced its fiscal 2026 EPS forecast to $0.30 from $0.31. The new estimate matches consensus but signals limited near-term earnings upside. Babcock Q3 EPS Estimate Decreased by Northland Securities

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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