Bel Fuse (NASDAQ:BELFA) Shares Gap Down - Here's Why

Key Points

• Bel Fuse shares gapped down, opening at $227.42 versus a prior close of $252.89 and last trading near $224.71, a drop of about 3.3% on relatively light volume.
• Analysts hold a consensus Buy rating with a $250 average price target, although Weiss Ratings recently cut its rating from buy to hold.
• The company posted a strong quarterly beat (EPS $1.88 vs. $1.10 expected; revenue $175.94M vs. $172.01M), but the stock saw notable insider selling — including the CEO’s sale of ~33,967 shares for roughly $7.95M.

Bel Fuse Inc. (NASDAQ:BELFA - Get Free Report)'s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $252.89, but opened at $227.42. Bel Fuse shares last traded at $224.7090, with a volume of 3,144 shares.

Analysts Set New Price Targets

A number of research firms recently commented on BELFA. Robert W. Baird set a $250.00 price objective on Bel Fuse in a report on Thursday, February 19th. Weiss Ratings cut Bel Fuse from a "buy (b-)" rating to a "hold (c)" rating in a report on Thursday, February 26th. One investment analyst has rated the stock with a Strong Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Buy" and a consensus price target of $250.00.

Bel Fuse Stock Down 3.3%

The company has a market cap of $2.81 billion, a price-to-earnings ratio of 47.76 and a beta of 1.25. 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 firm's fifty day moving average price is $205.26 and its 200-day moving average price is $172.29.

Bel Fuse (NASDAQ:BELFA - Get Free Report) last issued its quarterly earnings data on Tuesday, February 17th. The scientific and technical instruments company reported $1.88 EPS 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 business 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. Investors of record on Wednesday, April 15th will be given a $0.06 dividend. The ex-dividend date is Wednesday, April 15th. This represents a $0.24 annualized dividend and a dividend yield of 0.1%. Bel Fuse's payout ratio is currently 5.16%.

Insider Buying and Selling

In related news, CEO Farouq Salem Ali Tuweiq sold 33,967 shares of the stock in a transaction that occurred on Wednesday, February 25th. The stock was sold at an average price of $234.00, for a total transaction of $7,948,278.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Peter E. Gilbert sold 4,500 shares of the firm's stock in a transaction that occurred on Tuesday, February 24th. The stock was sold at an average price of $238.75, for a total transaction of $1,074,375.00. Following the sale, the director owned 15,047 shares in the company, valued at $3,592,471.25. This trade represents a 23.02% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 4.75% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Bel Fuse

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Strs Ohio bought a new position in Bel Fuse during the 1st quarter worth about $396,000. Sunbelt Securities Inc. acquired a new position in shares of Bel Fuse during the fourth quarter worth about $61,000. Millennium Management LLC boosted its position 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 buying an additional 9,656 shares during the period. Aristeia Capital L.L.C. grew its holdings in shares of Bel Fuse by 21.9% during the fourth quarter. Aristeia Capital L.L.C. now owns 11,094 shares of the scientific and technical instruments company's stock worth $1,684,000 after buying an additional 1,994 shares in the last quarter. Finally, Hound Partners LLC bought a new position in shares of Bel Fuse during the fourth quarter worth about $5,714,000. 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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