Goldman Sachs Group Inc. Cuts Position in Babcock $BW

Key Points

• Goldman Sachs Group Inc. reduced its stake in Babcock by 24.5%, owning 382,354 shares worth approximately $257,000 at the end of the first quarter.
• In contrast, other institutions such as Bank of America and Two Sigma Investments significantly increased their positions in Babcock during the fourth quarter, with Bank of America raising its stake by 62.8%.
• CEO Kenneth M. Young and CFO Cameron M. Frymyer both made personal stock purchases, indicating a strong belief in the company's potential, with the CEO increasing his ownership by 8.27%.

Goldman Sachs Group Inc. cut its stake in Babcock (NYSE:BW - Free Report) by 24.5% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 382,354 shares of the technology company's stock after selling 124,336 shares during the period. Goldman Sachs Group Inc. owned approximately 0.39% of Babcock worth $257,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Northern Trust Corp boosted its position in Babcock by 13.8% during the fourth quarter. Northern Trust Corp now owns 146,996 shares of the technology company's stock worth $241,000 after acquiring an additional 17,860 shares during the last quarter. BNP Paribas Financial Markets purchased a new stake in Babcock during the fourth quarter worth approximately $27,000. Bank of America Corp DE increased its position in shares of Babcock by 62.8% in the fourth quarter. Bank of America Corp DE now owns 319,495 shares of the technology company's stock worth $524,000 after acquiring an additional 123,194 shares in the last quarter. Two Sigma Investments LP grew its stake in shares of Babcock by 181.1% in the fourth quarter. Two Sigma Investments LP now owns 97,155 shares of the technology company's stock valued at $159,000 after buying an additional 62,598 shares in the last quarter. Finally, Two Sigma Advisers LP increased its stake in Babcock by 106.7% during the 4th quarter. Two Sigma Advisers LP now owns 26,734 shares of the technology company's stock worth $44,000 after buying an additional 13,800 shares during the period. Institutional investors and hedge funds own 83.17% of the company's stock.

Insiders Place Their Bets

In related news, CEO Kenneth M. Young purchased 20,000 shares of Babcock stock in a transaction on Monday, August 18th. The stock was bought at an average price of $1.51 per share, with a total value of $30,200.00. Following the completion of the transaction, the chief executive officer directly owned 261,745 shares of the company's stock, valued at approximately $395,234.95. This represents a 8.27% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Cameron M. Frymyer acquired 20,000 shares of the stock in a transaction dated Tuesday, August 19th. The shares were bought at an average cost of $1.55 per share, for a total transaction of $31,000.00. Following the acquisition, the chief financial officer owned 153,805 shares in the company, valued at $238,397.75. The trade was a 14.95% increase in their position. The disclosure for this purchase can be found here. In the last three months, insiders have purchased 59,347 shares of company stock valued at $99,803. Insiders own 3.90% of the company's stock.

Babcock Stock Performance

Babcock stock opened at $2.88 on Monday. Babcock has a 52 week low of $0.22 and a 52 week high of $3.55. The firm has a market capitalization of $291.17 million, a price-to-earnings ratio of -1.69 and a beta of 1.81. The company has a 50 day moving average price of $1.92 and a 200 day moving average price of $1.16.

Babcock (NYSE:BW - Get Free Report) last released its earnings results on Monday, August 11th. The technology company reported ($0.10) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.08) by ($0.02). The firm had revenue of $144.10 million during the quarter, compared to the consensus estimate of $182.07 million.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on the company. Craig Hallum upgraded Babcock from a "hold" rating to a "strong-buy" rating in a research note on Thursday, August 21st. Wall Street Zen lowered Babcock from a "hold" rating to a "sell" rating in a report on Saturday, August 16th. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, Babcock presently has a consensus rating of "Buy" and an average price target of $3.00.

Babcock Profile

Babcock & Wilcox Enterprises, Inc engages in the provision of fossil and renewable power generation and environmental equipment. It operates through the following segments: B&W Renewable, B&W Environmental, and B&W Thermal. The B&W Renewable segment supports a circular economy, diverting waste from landfills to use for power generation and replacing fossil fuels, while recovering metals and reducing emissions.

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