California State Teachers Retirement System Purchases 9,659,965 Shares of Powell Industries, Inc. $POWL

Key Points

• CalSTRS dramatically increased its Powell Industries stake by purchasing 9.66 million shares in the second quarter, bringing its ownership to 26.55% of the company. Institutional investors collectively own 89.77% of POWL.
• Powell Industries reported quarterly revenue of $311.74 million, up 8.9% year over year, but earnings of $1.42 per share fell short of the $1.49 consensus estimate. Shares opened at $176.89, well below their 50-day and 200-day moving averages.
• Analyst sentiment remains moderately positive, with a consensus rating of “Moderate Buy” and a $215.42 price target, while Cantor Fitzgerald lowered its target to $235 and insiders sold approximately $12.35 million of stock over the past 90 days.

California State Teachers Retirement System increased its holdings in Powell Industries, Inc. (NASDAQ:POWL - Free Report) by 85,706.4% in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 9,671,236 shares of the industrial products company's stock after buying an additional 9,659,965 shares during the period. California State Teachers Retirement System owned 26.55% of Powell Industries worth $2,769,455,000 as of its most recent SEC filing.

Several other large investors have also added to or reduced their stakes in POWL. Tanager Wealth Management LLP purchased a new position in shares of Powell Industries during the second quarter worth about $290,000. HB Wealth Management LLC grew its holdings in shares of Powell Industries by 189.2% during the 2nd quarter. HB Wealth Management LLC now owns 1,148 shares of the industrial products company's stock valued at $329,000 after purchasing an additional 751 shares during the last quarter. AlphaGrep UK Ltd bought a new position in shares of Powell Industries during the second quarter valued at about $373,000. Syon Capital LLC grew its position in Powell Industries by 187.2% during the 2nd quarter. Syon Capital LLC now owns 7,295 shares of the industrial products company's stock worth $2,089,000 after acquiring an additional 4,755 shares during the last quarter. Finally, denkapparat Operations GmbH increased its stake in shares of Powell Industries by 200.0% in the second quarter. denkapparat Operations GmbH now owns 1,536 shares of the industrial products company's stock worth $440,000 after buying an additional 1,024 shares during the period. Institutional investors own 89.77% of the company's stock.

Powell Industries Stock Down 1.9%

Shares of NASDAQ:POWL opened at $176.89 on Friday. The firm's 50 day moving average price is $209.55 and its 200-day moving average price is $230.68. Powell Industries, Inc. has a twelve month low of $92.30 and a twelve month high of $328.00. The stock has a market capitalization of $6.44 billion, a PE ratio of 33.95, a price-to-earnings-growth ratio of 2.40 and a beta of 1.18.

Powell Industries (NASDAQ:POWL - Get Free Report) last announced its earnings results on Monday, August 3rd. The industrial products company reported $1.42 earnings per share (EPS) for the quarter, missing the consensus estimate 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 for the quarter, compared to the consensus estimate of $316.70 million. During the same quarter last year, the firm posted $3.96 earnings per share. The business's quarterly revenue was up 8.9% compared to the same quarter last year. Analysts expect that Powell Industries, Inc. will post 5.36 earnings per share for the current fiscal year.

Powell Industries Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Wednesday, August 19th will be given a dividend of $0.09 per share. The ex-dividend date of this dividend is Wednesday, August 19th. This represents a $0.36 dividend on an annualized basis and a dividend yield of 0.2%. Powell Industries's payout ratio is presently 6.91%.

Analyst Ratings Changes

A number of research analysts have issued reports on POWL shares. Cantor Fitzgerald reduced their price objective on shares of Powell Industries from $320.00 to $235.00 and set a "neutral" rating on the stock in a research report on Friday, August 14th. Weiss Ratings lowered Powell Industries from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, August 19th. Finally, Glj Research raised shares of Powell Industries from a "hold" rating to a "strong-buy" rating in a report on Tuesday, July 14th. Two equities research analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $215.42.

Insider Activity

In other news, CEO Brett Cope sold 4,440 shares of the company's stock in a transaction on Thursday, July 9th. The stock was sold at an average price of $241.55, for a total value of $1,072,482.00. Following the completion of the sale, the chief executive officer directly owned 517,233 shares in the company, valued at $124,937,631.15. This represents a 0.85% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. 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 company's stock in a transaction on Thursday, June 25th. The stock was sold at an average price of $294.49, for a total value 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. This trade represents a 5.67% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 42,898 shares of company stock valued at $12,353,653 in the last 90 days. Company insiders own 2.20% of the company's stock.

Powell Industries 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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