Powell Industries, Inc. (NASDAQ:POWL) Stock Now Rated "Moderate Buy" by Sell-Side Analysts

Key Points

• Analysts now rate Powell Industries “Moderate Buy,” with two buy, two strong-buy, and three hold recommendations. The average 12-month price target is $187.92, though JPMorgan recently lowered its target to $250 from $300.
• POWL shares fell 3.3% to $165.14 and remain well below their 52-week high of $328.00. The company’s latest quarterly results missed estimates, with EPS of $1.42 versus the $1.49 consensus and revenue of $311.74 million versus $316.70 million expected.
• Powell declared a quarterly dividend of $0.09 per share, equal to a 0.2% annualized yield. Institutional investors own nearly 90% of the stock, while company insiders recently sold shares.

Shares of Powell Industries, Inc. (NASDAQ:POWL - Get Free Report) have been assigned a consensus recommendation of "Moderate Buy" from the seven brokerages that are presently covering the stock, Marketbeat reports. Three analysts have rated the stock with a hold recommendation, two have given a buy recommendation and two have issued a strong buy recommendation on the company. The average 1-year target price among brokerages that have issued a report on the stock in the last year is $187.92.

Several analysts have issued reports on POWL shares. Glj Research raised shares of Powell Industries from a "hold" rating to a "strong-buy" rating in a report on Tuesday, July 14th. JPMorgan Chase & Co. dropped their price objective on shares of Powell Industries from $300.00 to $250.00 and set an "overweight" rating for the company in a research note on Tuesday. Weiss Ratings cut shares of Powell Industries from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, August 19th. Finally, Cantor Fitzgerald restated a "neutral" rating and set a $235.00 price objective on shares of Powell Industries in a research report on Thursday, October 1st.

Powell Industries Stock Down 3.3%

Shares of Powell Industries stock traded down $5.68 on Friday, hitting $165.14. The company's stock had a trading volume of 1,183,558 shares, compared to its average volume of 583,427. Powell Industries has a 52-week low of $92.59 and a 52-week high of $328.00. The firm has a fifty day moving average price of $188.41 and a 200-day moving average price of $232.09. The company has a market capitalization of $6.02 billion, a P/E ratio of 31.70, a price-to-earnings-growth ratio of 1.78 and a beta of 1.17.

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

Powell Industries Dividend Announcement

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

Insiders Place Their Bets

In other news, CEO Brett Cope sold 4,799 shares of the business's stock in a transaction on Wednesday, September 30th. The stock was sold at an average price of $187.67, for a total value of $900,628.33. Following the completion of the transaction, the chief executive officer directly owned 507,934 shares of the company's stock, valued at $95,323,973.78. The trade was a 0.94% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, VP William Marshall Mauney, Jr. sold 301 shares of the company's stock in a transaction on Wednesday, September 30th. The shares were sold at an average price of $187.67, for a total value of $56,488.67. Following the completion of the sale, the vice president owned 10,552 shares in the company, valued at $1,980,293.84. This represents a 2.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 2.20% of the stock is currently owned by corporate insiders.

Institutional Trading of Powell Industries

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in POWL. BlackRock Inc. purchased a new position in Powell Industries in the 2nd quarter valued at about $1,033,376,000. Jupiter Topco LLC acquired a new stake in shares of Powell Industries during the 2nd quarter worth about $93,845,000. Tidal Investments LLC boosted its stake in shares of Powell Industries by 222.3% during the 2nd quarter. Tidal Investments LLC now owns 282,483 shares of the industrial products company's stock worth $80,892,000 after purchasing an additional 194,840 shares during the last quarter. Tema ETFs LLC grew its holdings in shares of Powell Industries by 217.3% during the second quarter. Tema ETFs LLC now owns 268,692 shares of the industrial products company's stock worth $76,943,000 after buying an additional 184,010 shares in the last quarter. Finally, Janus Henderson Group PLC grew its holdings in shares of Powell Industries by 55.1% during the first quarter. Janus Henderson Group PLC now owns 224,966 shares of the industrial products company's stock worth $121,643,000 after buying an additional 79,932 shares in the last quarter. Hedge funds and other institutional investors own 89.77% of the company's stock.

Powell Industries Company Profile

Powell Industries, Inc designs, manufactures and services equipment used to control, monitor and distribute electrical power. Its products include medium-voltage and low-voltage switchgear, motor control centers, electrical control panels, power-control rooms, bus systems and related protection and control equipment. The company also provides engineered electrical systems, field services, equipment modernization, installation support and commissioning services.

Powell serves customers in industries that require reliable and specialized electrical infrastructure, including oil and gas, petrochemical and chemical processing, utilities, mining, transportation, commercial facilities and renewable energy.

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