Situational Awareness LP Buys Shares of 1,353,900 Babcock $BW

Key Points

• Situational Awareness LP opened a new position in Babcock, buying 1,353,900 shares worth about $8.6 million. The stake represented roughly 1.22% of the company and was the fund’s 24th-largest holding.
• Institutional ownership remains high, with hedge funds and other investors holding about 83.17% of Babcock’s shares. Several firms recently added to their positions, including Vanguard Group and Marshall Wace LLP.
• The stock has faced mixed signals: Babcock posted a quarterly EPS miss despite revenue coming in above expectations, and analysts currently rate the stock a consensus “Hold” with an average target price of $14.25.

Situational Awareness LP bought a new stake in shares of Babcock (NYSE:BW - Free Report) in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund bought 1,353,900 shares of the technology company's stock, valued at approximately $8,584,000. Babcock accounts for 0.2% of Situational Awareness LP's holdings, making the stock its 24th largest holding. Situational Awareness LP owned about 1.22% of Babcock at the end of the most recent reporting period.

A number of other large investors have also recently modified their holdings of BW. Marshall Wace LLP boosted its holdings in shares of Babcock by 93.0% in the second quarter. Marshall Wace LLP now owns 395,945 shares of the technology company's stock valued at $380,000 after purchasing an additional 190,814 shares during the period. Nomura Holdings Inc. boosted its holdings in shares of Babcock by 58.2% in the second quarter. Nomura Holdings Inc. now owns 127,382 shares of the technology company's stock valued at $123,000 after purchasing an additional 46,884 shares during the period. Thompson Davis & CO. Inc. boosted its holdings in shares of Babcock by 221.8% in the third quarter. Thompson Davis & CO. Inc. now owns 96,550 shares of the technology company's stock valued at $280,000 after purchasing an additional 66,550 shares during the period. Bastion Asset Management Inc. purchased a new stake in shares of Babcock in the third quarter valued at approximately $450,000. Finally, Vanguard Group Inc. boosted its holdings in shares of Babcock by 54.3% in the third quarter. Vanguard Group Inc. now owns 4,423,243 shares of the technology company's stock valued at $12,827,000 after purchasing an additional 1,556,692 shares during the period. Hedge funds and other institutional investors own 83.17% of the company's stock.

Wall Street Analyst Weigh In

BW has been the subject of a number of research reports. Wall Street Zen lowered Babcock from a "buy" rating to a "hold" rating in a report on Saturday, May 16th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Babcock in a report on Monday, April 20th. Northland Securities set a $23.00 price target on Babcock in a report on Tuesday, May 12th. Finally, Craig Hallum reiterated a "buy" rating and issued a $19.00 price target on shares of Babcock in a report on Tuesday, March 17th. Three investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Hold" and an average target price of $14.25.

Babcock Stock Down 12.2%

Shares of NYSE:BW opened at $16.36 on Friday. The company has a market capitalization of $2.44 billion, a price-to-earnings ratio of -18.59 and a beta of 1.10. Babcock has a 52 week low of $0.87 and a 52 week high of $22.03. The firm has a 50 day moving average of $17.29 and a 200 day moving average of $11.65.

Babcock (NYSE:BW - Get Free Report) last issued its quarterly earnings results on Monday, May 11th. The technology company reported ($0.60) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.03) by ($0.57). The firm had revenue of $214.41 million during the quarter, compared to analyst estimates of $149.72 million. On average, sell-side analysts expect that Babcock will post 0.29 EPS for the current year.

Insider Activity

In other Babcock news, CEO Kenneth M. Young purchased 7,000 shares of Babcock stock in a transaction dated Wednesday, March 18th. The shares were acquired at an average cost of $15.14 per share, with a total value of $105,980.00. Following the completion of the transaction, the chief executive officer owned 1,656,512 shares in the company, valued at approximately $25,079,591.68. This trade represents a 0.42% increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 2.80% of the company's stock.

Key Headlines Impacting Babcock

Here are the key news stories impacting Babcock this week:

• Positive Sentiment: One recent market note argued BW had strong recent momentum, with shares rising 5.4% in the prior session, though that view also said the stock looked overvalued. Babcock & Wilcox Enterprises Inc (BW) Stock Up 5.4% but GF Value Says Overvalued -- GF Score: 49/100
• Neutral Sentiment: Several law firms issued deadline reminders and investor alerts related to the same securities class action, which keeps BW in the headlines but does not add new business information. BW Deadline: Rosen Law Firm Urges Babcock & Wilcox Enterprises, Inc. NYSE: BW Stockholders to Contact the Firm for Information About Their Rights
• Neutral Sentiment: Pomerantz, Berger Montague, Bragar Eagel & Squire, and The Gross Law Firm all announced or reiterated class-action filings and lead-plaintiff deadlines, reinforcing litigation overhang on the stock. Pomerantz Law Firm Announces the Filing of a Class Action Against Babcock & Wilcox Enterprises, Inc. and Certain Officers - BW
• Negative Sentiment: The filing of a class action lawsuit alleging securities-law violations against Babcock & Wilcox Enterprises, Inc. (BW) and certain officers is the most important negative catalyst and may weigh on investor sentiment until more clarity emerges. Bronstein, Gewirtz & Grossman LLC Urges Babcock & Wilcox Enterprises, Inc. Investors to Act: Class Action Filed Alleging Investor Harm

About Babcock

Babcock & Wilcox Enterprises, Inc NYSE: BW is a specialized provider of energy and environmental technologies and services serving power generation and heavy industrial markets. The company designs, manufactures and maintains critical components and systems that support the safe and efficient operation of both fossil-fuel and renewable power facilities. Its core offerings include industrial and utility boilers, environmental control systems for emissions reduction, and aftermarket support services ranging from inspection and maintenance to spare parts management.

In addition to its boiler and emissions control portfolio, Babcock & Wilcox Enterprises delivers lifecycle solutions aimed at enhancing plant performance and compliance.

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