Powell Industries, Inc. $POWL Shares Sold by Summit Partners Public Asset Management LLC

Key Points

• Summit Partners Public Asset Management cut its Powell Industries stake by 40.5% in the fourth quarter, selling 57,799 shares and leaving it with 84,963 shares worth about $27.1 million.
• Powell Industries reported mixed quarterly results, missing EPS and revenue estimates even though revenue rose 6.5% year over year; analysts still expect full-year EPS of 5.47.
• Management and the market remain active: the company cut its quarterly dividend to $0.09 per share, while analysts currently rate the stock a consensus Moderate Buy with a $236.67 target price despite the shares trading near recent highs.

Summit Partners Public Asset Management LLC trimmed its holdings in Powell Industries, Inc. (NASDAQ:POWL - Free Report) by 40.5% in the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 84,963 shares of the industrial products company's stock after selling 57,799 shares during the quarter. Summit Partners Public Asset Management LLC owned about 0.70% of Powell Industries worth $27,085,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in the business. Alps Advisors Inc. boosted its holdings in Powell Industries by 1.1% in the fourth quarter. Alps Advisors Inc. now owns 1,599 shares of the industrial products company's stock valued at $510,000 after purchasing an additional 18 shares in the last quarter. CWM LLC boosted its holdings in Powell Industries by 2.0% in the fourth quarter. CWM LLC now owns 1,219 shares of the industrial products company's stock valued at $389,000 after purchasing an additional 24 shares in the last quarter. Sequoia Financial Advisors LLC boosted its holdings in Powell Industries by 3.8% in the fourth quarter. Sequoia Financial Advisors LLC now owns 686 shares of the industrial products company's stock valued at $219,000 after purchasing an additional 25 shares in the last quarter. Cornerstone Investment Partners LLC boosted its holdings in Powell Industries by 1.6% in the fourth quarter. Cornerstone Investment Partners LLC now owns 1,911 shares of the industrial products company's stock valued at $609,000 after purchasing an additional 30 shares in the last quarter. Finally, Garner Asset Management Corp boosted its holdings in Powell Industries by 4.2% in the fourth quarter. Garner Asset Management Corp now owns 793 shares of the industrial products company's stock valued at $253,000 after purchasing an additional 32 shares in the last quarter. 89.77% of the stock is owned by institutional investors and hedge funds.

Powell Industries Stock Down 3.6%

Shares of POWL stock opened at $292.70 on Wednesday. Powell Industries, Inc. has a fifty-two week low of $56.70 and a fifty-two week high of $328.00. The stock has a market cap of $10.66 billion, a P/E ratio of 57.28, a P/E/G ratio of 3.96 and a beta of 1.11. The business has a fifty day simple moving average of $270.92 and a 200-day simple moving average of $192.18.

Powell Industries (NASDAQ:POWL - Get Free Report) last announced its quarterly earnings results on Monday, May 4th. The industrial products company reported $1.25 earnings per share for the quarter, missing analysts' consensus estimates of $1.34 by ($0.09). Powell Industries had a net margin of 16.51% and a return on equity of 28.61%. The firm had revenue of $296.62 million during the quarter, compared to analysts' expectations of $298.12 million. During the same quarter in the prior year, the business earned $3.81 EPS. The company's quarterly revenue was up 6.5% compared to the same quarter last year. On average, sell-side analysts anticipate that Powell Industries, Inc. will post 5.47 earnings per share for the current year.

Powell Industries Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, June 17th. Stockholders of record on Wednesday, May 20th will be given a $0.09 dividend. The ex-dividend date is Wednesday, May 20th. This represents a $0.36 dividend on an annualized basis and a dividend yield of 0.1%. Powell Industries's dividend payout ratio (DPR) is currently 7.05%.

Wall Street Analyst Weigh In

Several research analysts have issued reports on the company. JPMorgan Chase & Co. increased their price objective on Powell Industries from $310.00 to $360.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th. Weiss Ratings upgraded Powell Industries from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, May 8th. Glj Research assumed coverage on Powell Industries in a research report on Thursday, March 5th. They issued a "hold" rating and a $150.00 price objective for the company. Zacks Research cut Powell Industries from a "strong-buy" rating to a "hold" rating in a research report on Monday, May 11th. Finally, Texas Capital upgraded Powell Industries to a "strong-buy" rating in a research report on Friday, March 27th. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $236.67.

Insiders Place Their Bets

In other news, VP William Marshall Mauney, Jr. sold 2,500 shares of the firm's stock in a transaction on Monday, May 11th. The stock was sold at an average price of $323.69, for a total value of $809,225.00. Following the completion of the transaction, the vice president owned 10,853 shares in the company, valued at $3,513,007.57. This trade represents a 18.72% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Brett Alan Cope sold 4,440 shares of the firm's stock in a transaction on Thursday, April 9th. The shares were sold at an average price of $233.96, for a total value of $1,038,782.40. Following the completion of the transaction, the chief executive officer owned 164,851 shares of the company's stock, valued at approximately $38,568,539.96. This represents a 2.62% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 174,964 shares of company stock valued at $31,339,200. Company insiders own 2.20% of the company's stock.

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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