Powell Industries, Inc. (NASDAQ:POWL) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• Analyst sentiment is moderately positive: Seven brokerages give Powell Industries a consensus “Moderate Buy” rating, with an average 12-month price target of $215.42. Recent actions included an upgrade to “strong buy” and a price-target cut to $235 with a neutral rating.
• Quarterly results fell short of expectations: Powell reported adjusted earnings of $1.42 per share versus the $1.49 consensus estimate and revenue of $311.74 million versus $316.70 million expected, although revenue increased 8.9% year over year.
• Institutional ownership is high, while insiders sold shares: Institutions own 89.77% of the company, led by new positions from BlackRock and other major investors. Insiders sold 42,898 shares worth approximately $12.35 million over the past 90 days.

Shares of Powell Industries, Inc. (NASDAQ:POWL - Get Free Report) have earned a consensus recommendation of "Moderate Buy" from the seven brokerages that are covering the firm, Marketbeat reports. Three equities research analysts have rated the stock with a hold recommendation, two have given a buy recommendation and two have assigned a strong buy recommendation to the company. The average 1 year price target among brokers that have issued ratings on the stock in the last year is $215.4167.

Several analysts recently weighed in on POWL shares. Glj Research upgraded Powell Industries from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, July 14th. Weiss Ratings downgraded Powell Industries from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, August 19th. Finally, Cantor Fitzgerald cut their target price on Powell Industries from $320.00 to $235.00 and set a "neutral" rating on the stock in a research note on Friday, August 14th.

Powell Industries Stock Performance

Shares of Powell Industries stock opened at $187.56 on Tuesday. Powell Industries has a 52-week low of $92.30 and a 52-week high of $328.00. The stock has a market capitalization of $6.83 billion, a price-to-earnings ratio of 36.00, a P/E/G ratio of 2.45 and a beta of 1.18. The company's 50 day moving average price is $201.47 and its 200-day moving average price is $230.69.

Powell Industries (NASDAQ:POWL - Get Free Report) last released its quarterly earnings data on Monday, August 3rd. The industrial products company reported $1.42 earnings per share for the quarter, missing the consensus estimate of $1.49 by ($0.07). Powell Industries had a return on equity of 27.51% and a net margin of 16.49%.The business had revenue of $311.74 million during the quarter, compared to analysts' expectations of $316.70 million. During the same quarter last year, the business posted $3.96 EPS. The company's quarterly revenue was up 8.9% compared to the same quarter last year. As a group, equities research analysts forecast that Powell Industries will post 5.36 earnings per share for the current fiscal year.

Powell Industries Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 16th. Stockholders of record on Wednesday, August 19th were paid a $0.09 dividend. This represents a $0.36 annualized dividend and a dividend yield of 0.2%. The ex-dividend date was Wednesday, August 19th. Powell Industries's dividend payout ratio is currently 6.91%.

Insider Activity at Powell Industries

In related news, major shareholder Thomas W. Powell sold 33,958 shares of the firm's stock in a transaction that occurred on Thursday, June 25th. The shares were sold at an average price of $294.49, for a total value of $10,000,291.42. Following the transaction, the insider owned 564,736 shares of the company's stock, valued at approximately $166,309,104.64. This trade represents a 5.67% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, EVP Michael Metcalf sold 4,500 shares of the company's stock in a transaction on Tuesday, June 30th. The stock was sold at an average price of $284.64, for a total value of $1,280,880.00. Following the completion of the sale, the executive vice president owned 78,900 shares of the company's stock, valued at $22,458,096. This trade represents a 5.40% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 42,898 shares of company stock valued at $12,353,653 over the last 90 days. Corporate insiders own 2.20% of the company's stock.

Institutional Investors Weigh In On Powell Industries

Institutional investors and hedge funds have recently bought and sold shares of the business. BlackRock Inc. purchased a new position in shares of Powell Industries during the 2nd quarter valued at approximately $1,033,376,000. Jupiter Topco LLC purchased a new stake in Powell Industries in the 2nd quarter worth $93,845,000. Bank of New York Mellon Corp purchased a new stake in Powell Industries in the 2nd quarter worth $60,389,000. Tidal Investments LLC raised its position in Powell Industries by 222.3% during the second quarter. Tidal Investments LLC now owns 282,483 shares of the industrial products company's stock worth $80,892,000 after acquiring an additional 194,840 shares during the period. Finally, Bank of America Corp DE acquired a new position in Powell Industries during the second quarter worth $54,335,000. 89.77% of the stock is owned by institutional investors.

About Powell Industries

Powell Industries, Inc designs, manufactures and services equipment and systems used to control, monitor and distribute electrical power. Its offerings include medium- and low-voltage switchgear, motor control centers, power control rooms, modular power systems, circuit breakers, bus systems, protective relays and related automation and control solutions.

The company provides engineered electrical systems for industrial and infrastructure applications, including oil and gas, petrochemical, chemical, utility, mining, transportation and other heavy industries.

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