FuelCell Energy, Inc. (NASDAQ:FCEL) Given Consensus Recommendation of "Reduce" by Analysts

Key Points

• Analyst sentiment is weak: Nine analysts give FCEL a consensus "Reduce" rating (2 sell, 7 hold) with an average 12-month price target of $8.24.
• Quarterly results were mixed: FuelCell reported EPS of -$0.52 (beating the -$0.68 estimate) but revenue of $30.53M missed the $42.22M expectation, and the company still shows a negative net margin and negative ROE.
• Insider and institutional moves: Director Betsy B. Bingham sold 8,608 shares at about $8.52, while institutional ownership stands at 42.78% with large new or increased stakes from firms like Legal & General and Invesco.

FuelCell Energy, Inc. (NASDAQ:FCEL - Get Free Report) has earned a consensus recommendation of "Reduce" from the nine research firms that are currently covering the firm, Marketbeat.com reports. Two analysts have rated the stock with a sell recommendation and seven have issued a hold recommendation on the company. The average 12-month price objective among analysts that have updated their coverage on the stock in the last year is $8.2417.

A number of brokerages have recently issued reports on FCEL. Jefferies Financial Group set a $7.20 price objective on FuelCell Energy and gave the stock a "hold" rating in a report on Tuesday. KeyCorp restated a "sector weight" rating on shares of FuelCell Energy in a report on Friday, December 19th. TD Cowen raised their price target on FuelCell Energy from $7.00 to $9.00 and gave the stock a "hold" rating in a research report on Friday, December 19th. Zacks Research cut FuelCell Energy from a "strong-buy" rating to a "hold" rating in a research note on Friday, January 16th. Finally, Wall Street Zen downgraded FuelCell Energy from a "hold" rating to a "sell" rating in a research report on Friday, January 23rd.

Insider Activity at FuelCell Energy

In related news, Director Betsy B. Bingham sold 8,608 shares of FuelCell Energy stock in a transaction on Monday, December 22nd. The shares were sold at an average price of $8.52, for a total value of $73,340.16. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. 5.46% of the stock is currently owned by insiders.

Institutional Investors Weigh In On FuelCell Energy

Institutional investors have recently added to or reduced their stakes in the company. Legal & General Group Plc bought a new stake in FuelCell Energy in the 4th quarter worth $21,149,000. Invesco Ltd. raised its stake in shares of FuelCell Energy by 75.4% during the fourth quarter. Invesco Ltd. now owns 1,505,430 shares of the energy company's stock valued at $11,005,000 after acquiring an additional 647,151 shares during the last quarter. CenterBook Partners LP bought a new position in shares of FuelCell Energy during the fourth quarter valued at about $9,348,000. Renaissance Technologies LLC boosted its holdings in shares of FuelCell Energy by 14.1% during the fourth quarter. Renaissance Technologies LLC now owns 1,219,600 shares of the energy company's stock worth $8,915,000 after purchasing an additional 150,600 shares during the period. Finally, Vanguard Group Inc. grew its stake in shares of FuelCell Energy by 2.3% in the third quarter. Vanguard Group Inc. now owns 1,073,609 shares of the energy company's stock worth $8,374,000 after purchasing an additional 23,981 shares during the last quarter. Hedge funds and other institutional investors own 42.78% of the company's stock.

FuelCell Energy Price Performance

FCEL stock opened at $6.63 on Friday. The company has a debt-to-equity ratio of 0.19, a quick ratio of 5.36 and a current ratio of 7.96. FuelCell Energy has a 52 week low of $3.58 and a 52 week high of $11.99. The firm's fifty day moving average is $7.94 and its 200 day moving average is $7.75. The firm has a market cap of $351.26 million, a P/E ratio of -0.96 and a beta of 1.33.

FuelCell Energy (NASDAQ:FCEL - Get Free Report) last issued its earnings results on Monday, March 9th. The energy company reported ($0.52) EPS for the quarter, topping analysts' consensus estimates of ($0.68) by $0.16. FuelCell Energy had a negative net margin of 107.51% and a negative return on equity of 17.76%. The company had revenue of $30.53 million for the quarter, compared to analysts' expectations of $42.22 million. Research analysts predict that FuelCell Energy will post -6.11 earnings per share for the current year.

About FuelCell Energy

FuelCell Energy, Inc NASDAQ: FCEL is a publicly traded company that designs, manufactures and operates turnkey molten carbonate fuel cell power plants. These stationary, on-site energy solutions generate electricity and heat through an electrochemical process that combines natural gas or biogas with oxygen, producing power with lower greenhouse gas emissions than traditional fossil fuel-based generation. The company’s fuel cell technology is engineered for continuous, baseload operation and can be integrated into microgrid architectures and industrial power systems to provide reliable, around-the-clock energy.

The company’s core product suite, marketed under the SureSource brand, encompasses both power generation and integrated carbon capture or hydrogen production capabilities.

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