Bel Fuse (NASDAQ:BELFA) Shares Down 6.4% - Time to Sell?

Key Points

• Shares plunged intraday (about 6.4%, trading as low as $235.99) on thin volume—roughly an 81% drop versus average—down from a prior close of $252.89.
• Bel Fuse reported a strong quarter, beating estimates with $1.88 EPS vs. $1.10 expected and revenue of $175.94M versus $172.01M, with a 21.8% ROE and 9.1% net margin.
• Major insiders sold sizable stakes recently, including the CEO’s sale of 33,967 shares (~$7.95M) and a director selling 4,500 shares, while insiders still own about 4.75% of the company.

Bel Fuse Inc. (NASDAQ:BELFA - Get Free Report)'s stock price was down 6.4% during mid-day trading on Monday . The company traded as low as $235.99 and last traded at $236.66. Approximately 12,807 shares traded hands during mid-day trading, a decline of 81% from the average daily volume of 67,587 shares. The stock had previously closed at $252.89.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on BELFA shares. Weiss Ratings lowered Bel Fuse from a "buy (b-)" rating to a "hold (c)" rating in a research note on Thursday, February 26th. Robert W. Baird set a $250.00 price objective on Bel Fuse in a research note on Thursday, February 19th. One investment analyst has rated the stock with a Strong Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat.com, Bel Fuse has an average rating of "Buy" and an average target price of $250.00.

Bel Fuse Trading Down 11.1%

The company has a fifty day simple moving average of $204.97 and a two-hundred day simple moving average of $171.48. The company has a current ratio of 3.02, a quick ratio of 1.71 and a debt-to-equity ratio of 0.46. The company has a market cap of $2.85 billion, a PE ratio of 48.30 and a beta of 1.25.

Bel Fuse (NASDAQ:BELFA - Get Free Report) last issued its quarterly earnings results on Tuesday, February 17th. The scientific and technical instruments company reported $1.88 earnings per share for the quarter, topping the consensus estimate of $1.10 by $0.78. Bel Fuse had a return on equity of 21.78% and a net margin of 9.11%.The company had revenue of $175.94 million for the quarter, compared to the consensus estimate of $172.01 million.

Bel Fuse Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, May 1st. Stockholders of record on Wednesday, April 15th will be issued a $0.06 dividend. The ex-dividend date is Wednesday, April 15th. This represents a $0.24 dividend on an annualized basis and a dividend yield of 0.1%. Bel Fuse's dividend payout ratio is presently 5.16%.

Insider Transactions at Bel Fuse

In other news, Director Peter E. Gilbert sold 4,500 shares of the stock in a transaction dated Tuesday, February 24th. The stock was sold at an average price of $238.75, for a total value of $1,074,375.00. Following the transaction, the director owned 15,047 shares in the company, valued at approximately $3,592,471.25. This represents a 23.02% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Farouq Salem Ali Tuweiq sold 33,967 shares of the stock in a transaction dated Wednesday, February 25th. The shares were sold at an average price of $234.00, for a total value of $7,948,278.00. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 4.75% of the company's stock.

Institutional Trading of Bel Fuse

A number of large investors have recently made changes to their positions in BELFA. Hound Partners LLC acquired a new stake in shares of Bel Fuse in the 4th quarter valued at about $5,714,000. Arrowstreet Capital Limited Partnership purchased a new stake in shares of Bel Fuse during the third quarter worth approximately $1,628,000. Citadel Advisors LLC raised its stake in shares of Bel Fuse by 434.9% during the third quarter. Citadel Advisors LLC now owns 13,336 shares of the scientific and technical instruments company's stock worth $1,552,000 after purchasing an additional 10,843 shares during the last quarter. Millennium Management LLC raised its stake in shares of Bel Fuse by 314.2% during the fourth quarter. Millennium Management LLC now owns 12,729 shares of the scientific and technical instruments company's stock worth $1,932,000 after purchasing an additional 9,656 shares during the last quarter. Finally, Nitor Capital Management LLC purchased a new stake in shares of Bel Fuse during the fourth quarter worth approximately $1,063,000. 6.01% of the stock is owned by institutional investors and hedge funds.

Bel Fuse Company Profile

Bel Fuse Inc, incorporated in 1949 and headquartered in Jersey City, New Jersey, designs and manufactures a broad range of electronic components aimed at ensuring reliable power delivery, circuit protection and signal connectivity. The company operates through two primary segments—Power Solutions Group and Telecom Products Group—serving original equipment manufacturers in multiple end markets, including telecommunications, data communications, consumer electronics, industrial and transportation.

Within its Power Solutions Group, Bel Fuse offers magnetic components such as power and signal transformers, inductors and coils, as well as circuit protection devices including fuses and resettable polyfuses.

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