FuelCell Energy, Inc. (NASDAQ:FCEL) Receives Average Recommendation of "Hold" from Brokerages

Key Points

• FuelCell Energy has a “Hold” consensus rating from nine brokerages, with four buys, three holds and two sells. The average 12-month price target is $22.83, above the reported $14.95 share price.
• The company’s latest quarterly results missed expectations, reporting a $0.64 loss per share versus a $0.41 consensus loss and revenue of $33 million versus an estimated $38.79 million. FuelCell Energy posted a negative net margin of 113.6%.
• Despite weak earnings, management is targeting data-center power-conversion projects and positive adjusted EBITDA by fiscal fourth-quarter 2027, supported by approximately $737.3 million in cash. The stock also faces risks from insider selling and investigations by several law firms into possible securities-law violations.

Shares of FuelCell Energy, Inc. (NASDAQ:FCEL - Get Free Report) have been given an average recommendation of "Hold" by the nine brokerages that are currently covering the stock, MarketBeat Ratings reports. Two research analysts have rated the stock with a sell rating, three have issued a hold rating and four have assigned a buy rating to the company. The average 12 month price objective among analysts that have issued ratings on the stock in the last year is $22.8333.

A number of analysts have weighed in on FCEL shares. Jefferies Financial Group reaffirmed a "buy" rating on shares of FuelCell Energy in a research note on Thursday. Wall Street Zen downgraded FuelCell Energy from a "hold" rating to a "sell" rating in a report on Sunday, August 9th. B. Riley Financial upgraded FuelCell Energy from a "neutral" rating to a "buy" rating and boosted their price objective for the stock from $13.00 to $32.00 in a research report on Monday, June 29th. TD Cowen reaffirmed a "hold" rating and issued a $16.00 target price (up from $9.00) on shares of FuelCell Energy in a report on Tuesday, June 9th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of FuelCell Energy in a research report on Monday, August 17th.

Insider Activity

In other news, EVP Shankar Achanta sold 2,500 shares of the company's stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $28.71, for a total value of $71,775.00. Following the completion of the transaction, the executive vice president owned 2,618 shares of the company's stock, valued at $75,162.78. This represents a 48.85% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. 5.46% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On FuelCell Energy

A number of institutional investors have recently added to or reduced their stakes in the business. Dimensional Fund Advisors LP lifted its holdings in shares of FuelCell Energy by 459.1% during the first quarter. Dimensional Fund Advisors LP now owns 312,536 shares of the energy company's stock worth $2,040,000 after purchasing an additional 256,640 shares during the period. Bank of America Corp DE increased its holdings in FuelCell Energy by 1,298.3% in the first quarter. Bank of America Corp DE now owns 190,724 shares of the energy company's stock valued at $1,245,000 after purchasing an additional 177,084 shares during the period. Bank of New York Mellon Corp acquired a new stake in FuelCell Energy in the second quarter valued at $6,094,000. First Trust Advisors LP bought a new position in FuelCell Energy during the 1st quarter worth $758,000. Finally, CenterBook Partners LP bought a new position in FuelCell Energy during the 4th quarter worth $9,348,000. 42.78% of the stock is owned by institutional investors.

FuelCell Energy Stock Up 1.9%

FCEL stock opened at $14.95 on Friday. The firm has a 50-day moving average price of $21.39 and a 200-day moving average price of $15.92. FuelCell Energy has a 12 month low of $3.81 and a 12 month high of $37.88. The company has a current ratio of 8.67, a quick ratio of 7.20 and a debt-to-equity ratio of 0.15. The stock has a market capitalization of $1.20 billion, a P/E ratio of -4.36 and a beta of 2.35.

FuelCell Energy (NASDAQ:FCEL - Get Free Report) last announced its quarterly earnings results on Wednesday, September 2nd. The energy company reported ($0.64) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.41) by ($0.23). The company had revenue of $33.00 million for the quarter, compared to the consensus estimate of $38.79 million. FuelCell Energy had a negative net margin of 113.60% and a negative return on equity of 16.85%. As a group, equities research analysts anticipate that FuelCell Energy will post -1.73 EPS for the current fiscal year.

Key FuelCell Energy News

Here are the key news stories impacting FuelCell Energy this week:

• Positive Sentiment: Management is targeting data-center power-conversion projects, a 100-megawatt production rate by October 2026, and positive adjusted EBITDA in fiscal fourth-quarter 2027. The company also highlighted new data-center agreements and a cash balance of approximately $737.3 million, supporting its ability to fund expansion. FuelCell Energy Q3 Earnings Call Focuses on Data Center Conversion
• Positive Sentiment: Canaccord Genuity reaffirmed its “buy” rating and maintained a $30 price target, implying substantial upside from recent trading levels. Fuel-cell stocks also benefited from broader risk appetite toward high-beta clean-energy companies.
• Neutral Sentiment: FuelCell Energy reported fiscal third-quarter revenue of $33 million and a net loss of approximately $44.5 million. The results were weak, but investors are weighing the near-term earnings shortfall against the company’s longer-term data-center growth strategy and strong liquidity. Why FuelCell Energy Is Getting Attention After Its Latest Update
• Negative Sentiment: Quarterly earnings missed expectations: adjusted loss was $0.64 per share versus a $0.41 consensus loss, while revenue fell below the roughly $38.8 million estimate. The disappointing release triggered sharp selling and renewed concerns about execution, profitability, and the company’s ability to convert its backlog into revenue.
• Negative Sentiment: Several law firms, including Glancy Prongay Wolke & Rotter, Kaplan Fox, Frank R. Cruz, Kirby McInerney, and Johnson Fistel, announced investigations into possible securities-law violations. The inquiries reportedly relate to a recent stock offering and disclosures concerning significant costs and losses tied to a commercial agreement. The allegations have not been proven, but the legal overhang could pressure the stock and increase reputational and financial risk. Securities Fraud Investigation Announced

FuelCell Energy Company Profile

FuelCell Energy, Inc NASDAQ: FCEL is a publicly traded company that designs, manufactures and operates turnkey molten carbonate fuel cell power plants. These stationary, on-site energy solutions generate electricity and heat through an electrochemical process that combines natural gas or biogas with oxygen, producing power with lower greenhouse gas emissions than traditional fossil fuel-based generation. The company’s fuel cell technology is engineered for continuous, baseload operation and can be integrated into microgrid architectures and industrial power systems to provide reliable, around-the-clock energy.

The company’s core product suite, marketed under the SureSource brand, encompasses both power generation and integrated carbon capture or hydrogen production capabilities.

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source