Bank of America Corp DE Makes New Investment in Powell Industries, Inc. $POWL

Key Points

• Bank of America acquired 189,745 Powell Industries shares worth approximately $54.3 million, giving it a 0.52% stake. Institutional investors and hedge funds collectively own 89.77% of the company.
• Powell Industries recently reported quarterly revenue of $311.74 million, up 8.9% year over year, but earnings per share of $1.42 missed analysts’ $1.49 estimate. Shares opened at $183.96, well below their 12-month high of $328.
• Analyst sentiment remains a “Moderate Buy,” with an average price target of $215.42, while insiders sold about $12.4 million of stock in the latest quarter. The company also maintains a quarterly dividend of $0.09 per share.

Bank of America Corp DE bought a new stake in Powell Industries, Inc. (NASDAQ:POWL - Free Report) in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm bought 189,745 shares of the industrial products company's stock, valued at approximately $54,335,000. Bank of America Corp DE owned about 0.52% of Powell Industries at the end of the most recent quarter.

Other hedge funds have also recently made changes to their positions in the company. BlackRock Inc. bought a new stake in Powell Industries during the 2nd quarter worth approximately $1,033,376,000. Voss Capital LP grew its stake in shares of Powell Industries by 18.6% in the fourth quarter. Voss Capital LP now owns 350,000 shares of the industrial products company's stock worth $111,573,000 after purchasing an additional 55,000 shares during the last quarter. Jupiter Topco LLC acquired a new stake in Powell Industries in the second quarter valued at $93,845,000. Fisher Asset Management LLC increased its holdings in Powell Industries by 5.6% in the fourth quarter. Fisher Asset Management LLC now owns 317,273 shares of the industrial products company's stock valued at $101,140,000 after purchasing an additional 16,777 shares during the period. Finally, Tema ETFs LLC increased its holdings in Powell Industries by 217.3% in the second quarter. Tema ETFs LLC now owns 268,692 shares of the industrial products company's stock valued at $76,943,000 after purchasing an additional 184,010 shares during the period. 89.77% of the stock is owned by institutional investors and hedge funds.

Powell Industries Stock Performance

Shares of POWL opened at $183.96 on Monday. The stock has a market capitalization of $6.70 billion, a P/E ratio of 35.31, a price-to-earnings-growth ratio of 2.45 and a beta of 1.18. The firm's fifty day simple moving average is $202.23 and its two-hundred day simple moving average is $230.57. Powell Industries, Inc. has a 12 month low of $92.30 and a 12 month high of $328.00.

Powell Industries (NASDAQ:POWL - Get Free Report) last posted 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). The business had revenue of $311.74 million during the quarter, compared to the consensus estimate of $316.70 million. Powell Industries had a return on equity of 27.51% and a net margin of 16.49%.The business's revenue was up 8.9% on a year-over-year basis. During the same period last year, the business posted $3.96 earnings per share. As a group, research analysts predict that Powell Industries, Inc. will post 5.36 EPS for the current fiscal year.

Powell Industries Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 16th. Stockholders of record on Wednesday, August 19th were given a dividend of $0.09 per share. The ex-dividend date of this dividend was Wednesday, August 19th. This represents a $0.36 annualized dividend and a dividend yield of 0.2%. Powell Industries's dividend payout ratio (DPR) is 6.91%.

Wall Street Analysts Forecast Growth

POWL has been the topic of several recent research reports. Glj Research raised Powell Industries from a "hold" rating to a "strong-buy" rating in a report on Tuesday, July 14th. Cantor Fitzgerald decreased their price target on Powell Industries from $320.00 to $235.00 and set a "neutral" rating for the company in a research note on Friday, August 14th. Finally, Weiss Ratings downgraded Powell Industries from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, August 19th. Two equities research analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, Powell Industries has an average rating of "Moderate Buy" and an average target price of $215.42.

Insider Activity

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

Powell Industries Company Profile

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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