Capital World Investors Invests $20.70 Million in Powell Industries, Inc. $POWL

Key Points

• Capital World Investors initiated a new position in Powell Industries, buying 64,947 shares worth about $20.7 million and ending the quarter with 0.53% ownership.
• Powell Industries has seen notable insider selling, including a 149,334-share sale by major shareholder Thomas W. Powell and a 9,000-share sale by EVP Michael William Metcalf; insiders sold 179,404 shares total over the past 90 days.
• The company reported mixed quarterly results, missing EPS and revenue estimates, while analysts remain cautiously positive overall with a Moderate Buy consensus and an average target price of $236.67 despite recent rating cuts.

Capital World Investors acquired a new position in shares of Powell Industries, Inc. (NASDAQ:POWL - Free Report) in the 4th quarter, according to its most recent filing with the Securities & Exchange Commission. The fund acquired 64,947 shares of the industrial products company's stock, valued at approximately $20,704,000. Capital World Investors owned 0.53% of Powell Industries at the end of the most recent quarter.

Several other institutional investors and hedge funds have also made changes to their positions in the stock. CWM LLC lifted its stake in shares of Powell Industries by 2.0% during the fourth quarter. CWM LLC now owns 1,219 shares of the industrial products company's stock worth $389,000 after buying an additional 24 shares during the period. Sequoia Financial Advisors LLC lifted its stake in shares of Powell Industries by 3.8% during the fourth quarter. Sequoia Financial Advisors LLC now owns 686 shares of the industrial products company's stock worth $219,000 after buying an additional 25 shares during the period. Ashton Thomas Private Wealth LLC lifted its stake in shares of Powell Industries by 2.8% during the third quarter. Ashton Thomas Private Wealth LLC now owns 1,048 shares of the industrial products company's stock worth $319,000 after buying an additional 29 shares during the period. State of Wyoming lifted its stake in shares of Powell Industries by 18.5% during the third quarter. State of Wyoming now owns 186 shares of the industrial products company's stock worth $57,000 after buying an additional 29 shares during the period. Finally, Cornerstone Investment Partners LLC lifted its stake in shares of Powell Industries by 1.6% during the fourth quarter. Cornerstone Investment Partners LLC now owns 1,911 shares of the industrial products company's stock worth $609,000 after buying an additional 30 shares during the period. 89.77% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In other Powell Industries news, major shareholder Thomas W. Powell sold 149,334 shares of Powell Industries stock in a transaction on Thursday, March 19th. The shares were sold at an average price of $167.41, for a total value of $25,000,004.94. Following the completion of the transaction, the insider owned 1,796,082 shares of the company's stock, valued at approximately $300,682,087.62. The trade was a 7.68% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Michael William Metcalf sold 9,000 shares of Powell Industries stock in a transaction on Tuesday, March 31st. The shares were sold at an average price of $176.00, for a total transaction of $1,584,000.00. Following the completion of the transaction, the executive vice president directly owned 83,400 shares of the company's stock, valued at $14,678,400. The trade was a 9.74% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 179,404 shares of company stock valued at $32,086,304 in the last ninety days. Company insiders own 2.20% of the company's stock.

Powell Industries Price Performance

Shares of Powell Industries stock opened at $283.51 on Wednesday. The firm has a fifty day moving average price of $260.00 and a 200 day moving average price of $185.56. Powell Industries, Inc. has a 1 year low of $56.70 and a 1 year high of $328.00. The stock has a market cap of $10.33 billion, a PE ratio of 55.48, a price-to-earnings-growth ratio of 3.83 and a beta of 1.11.

Powell Industries (NASDAQ:POWL - Get Free Report) last issued its earnings results on Monday, May 4th. The industrial products company reported $1.25 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.34 by ($0.09). Powell Industries had a return on equity of 28.61% and a net margin of 16.51%.The business had revenue of $296.62 million for the quarter, compared to analysts' expectations of $298.12 million. During the same period last year, the business earned $3.81 EPS. The company's revenue for the quarter was up 6.5% on a year-over-year basis. As a group, equities analysts expect that Powell Industries, Inc. will post 5.47 EPS for the current year.

Powell Industries Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 17th. Shareholders of record on Wednesday, May 20th will be issued a $0.09 dividend. The ex-dividend date of this dividend is Wednesday, May 20th. This represents a $0.36 dividend on an annualized basis and a yield of 0.1%. Powell Industries's payout ratio is presently 7.05%.

Analyst Ratings Changes

Several research analysts recently issued reports on the stock. JPMorgan Chase & Co. raised their target price on shares of Powell Industries from $310.00 to $360.00 and gave the stock an "overweight" rating in a report on Wednesday, May 6th. Zacks Research cut shares of Powell Industries from a "strong-buy" rating to a "hold" rating in a report on Monday, May 11th. Wall Street Zen cut shares of Powell Industries from a "buy" rating to a "hold" rating in a report on Saturday, March 7th. Texas Capital raised shares of Powell Industries to a "strong-buy" rating in a report on Friday, March 27th. Finally, Glj Research assumed coverage on shares of Powell Industries in a report on Thursday, March 5th. They set a "hold" rating and a $150.00 target price for the company. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, Powell Industries currently has a consensus rating of "Moderate Buy" and an average target price of $236.67.

Powell Industries Company Profile

Powell Industries, Inc is an industrial electrical engineering company specializing in the design, manufacture and integration of customized power control and distribution solutions. The firm's offerings range from medium‐voltage switchgear and power control centers to bus duct, motor control centers and specialty transformers. Powell also provides automation systems, protective relaying, metering, supervisory control and data acquisition (SCADA) platforms, and turnkey engineering services to help clients manage critical power infrastructure.

Serving the oil and gas, petrochemical, refining, utility, mining and industrial sectors, Powell's products are engineered to meet demanding performance, safety and reliability requirements.

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