Eos Energy Enterprises (NASDAQ:EOSE) Shares Gap Down After Earnings Miss

Key Points

• Eos Energy Enterprises shares plunged after a major earnings miss, opening at $3.58 versus a prior close of $4.35. The company reported a quarterly loss of $1.20 per share and revenue of $13.74 million, well below analyst expectations of a $0.19 loss and $68.32 million in revenue.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $9.17. While several firms maintain Buy ratings, Stifel lowered its target to $10, and Weiss Ratings reiterated a Sell rating.
• Insiders have been selling shares, including CEO Joe Mastrangelo’s sale of 159,154 shares; insiders sold 456,307 shares worth about $1.88 million over the past 90 days. Institutional investors own 54.87% of the company.

Eos Energy Enterprises, Inc. (NASDAQ:EOSE - Get Free Report)'s stock price gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $4.35, but opened at $3.58. Eos Energy Enterprises shares last traded at $3.74, with a volume of 18,994,443 shares trading hands.

The company reported ($1.20) EPS for the quarter, missing the consensus estimate of ($0.19) by ($1.01). The business had revenue of $13.74 million for the quarter, compared to analysts' expectations of $68.32 million. During the same period in the previous year, the firm earned ($1.05) earnings per share.

Analyst Upgrades and Downgrades

Several analysts recently commented on the company. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Eos Energy Enterprises in a research note on Friday, July 17th. Stifel Nicolaus decreased their target price on Eos Energy Enterprises from $12.00 to $10.00 and set a "buy" rating for the company in a research note on Monday, July 13th. Truist Financial began coverage on Eos Energy Enterprises in a research note on Monday, July 13th. They issued a "buy" rating and a $7.00 target price for the company. Zacks Research upgraded Eos Energy Enterprises from a "strong sell" rating to a "hold" rating in a report on Tuesday, April 28th. Finally, Needham & Company LLC initiated coverage on Eos Energy Enterprises in a research report on Friday, May 22nd. They set a "buy" rating and a $11.00 price target on the stock. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, Eos Energy Enterprises has a consensus rating of "Hold" and a consensus price target of $9.17.

Insider Activity at Eos Energy Enterprises

In other news, insider Michael W. Silberman sold 14,998 shares of the firm's stock in a transaction that occurred on Tuesday, June 30th. The shares were sold at an average price of $5.87, for a total transaction of $88,038.26. Following the completion of the transaction, the insider directly owned 298,277 shares of the company's stock, valued at $1,750,885.99. This trade represents a 4.79% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Joe Mastrangelo sold 159,154 shares of Eos Energy Enterprises stock in a transaction that occurred on Monday, July 27th. The shares were sold at an average price of $3.61, for a total transaction of $574,545.94. Following the completion of the sale, the chief executive officer owned 1,947,586 shares in the company, valued at $7,030,785.46. This trade represents a 7.55% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 456,307 shares of company stock worth $1,882,877. 1.73% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Eos Energy Enterprises

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. PNC Financial Services Group Inc. increased its position in shares of Eos Energy Enterprises by 3,843.8% in the fourth quarter. PNC Financial Services Group Inc. now owns 2,524 shares of the company's stock valued at $29,000 after acquiring an additional 2,460 shares during the last quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA boosted its position in Eos Energy Enterprises by 58.8% during the fourth quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 2,700 shares of the company's stock valued at $31,000 after purchasing an additional 1,000 shares during the last quarter. Danske Bank A S bought a new position in Eos Energy Enterprises in the fourth quarter valued at approximately $33,000. TD Waterhouse Canada Inc. grew its stake in Eos Energy Enterprises by 178.7% in the fourth quarter. TD Waterhouse Canada Inc. now owns 3,119 shares of the company's stock valued at $36,000 after purchasing an additional 2,000 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd increased its position in shares of Eos Energy Enterprises by 33.1% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 5,732 shares of the company's stock worth $66,000 after purchasing an additional 1,425 shares during the last quarter. 54.87% of the stock is owned by institutional investors.

Eos Energy Enterprises Stock Performance

The stock has a market cap of $1.25 billion, a price-to-earnings ratio of -0.55 and a beta of 2.75. The company has a 50-day simple moving average of $5.68 and a two-hundred day simple moving average of $7.70.

About Eos Energy Enterprises

Eos Energy Enterprises specializes in the development and deployment of scalable, long-duration energy storage systems designed to support the integration of renewable power and enhance grid reliability. The company's core technology centers on its proprietary zinc hybrid cathode (Znyth™) battery platform, which aims to deliver safe, low-cost, and durable performance for utility, commercial and industrial, and microgrid applications.

The company's flagship product, the Aurora™ energy storage system, combines its Znyth™ cells with modular power conversion and controls to offer flexible capacity ranging from one to three hours of discharge duration.

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