FuelCell Energy (NASDAQ:FCEL) Rating Increased to Buy at UBS Group

Key Points

• UBS Group upgraded FuelCell Energy from neutral to buy and raised its price target to $27 from $22, implying about 41.5% upside from the prior close.
• Analyst sentiment remains mixed overall: FuelCell Energy now has a consensus Hold rating and a consensus price target of $22.83, with four Buy ratings, three Hold ratings, and two Sell ratings.
• The company continues to face fundamental pressure, as its latest earnings missed estimates on both EPS and revenue, while the stock was also noted as down 9.3% and under recent insider selling activity.

FuelCell Energy (NASDAQ:FCEL - Get Free Report) was upgraded by equities researchers at UBS Group from a "neutral" rating to a "buy" rating in a report issued on Tuesday,Benzinga reports. The brokerage currently has a $27.00 target price on the energy company's stock, up from their prior target price of $22.00. UBS Group's price objective suggests a potential upside of 41.51% from the stock's previous close.

A number of other research analysts have also issued reports on FCEL. Weiss Ratings upgraded shares of FuelCell Energy from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Wednesday, May 20th. Canaccord Genuity Group boosted their price target on FuelCell Energy from $12.00 to $30.00 and gave the company a "buy" rating in a research note on Tuesday, June 9th. Wall Street Zen downgraded FuelCell Energy from a "hold" rating to a "sell" rating in a research report on Saturday, June 13th. Wells Fargo & Company raised their price objective on FuelCell Energy from $6.00 to $8.00 and gave the stock an "underweight" rating in a research note on Tuesday, June 16th. Finally, B. Riley Financial raised FuelCell Energy from a "neutral" rating to a "buy" rating and lifted their price objective for the company from $13.00 to $32.00 in a report on Monday, June 29th. Four research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, FuelCell Energy presently has a consensus rating of "Hold" and a consensus price target of $22.83.

FuelCell Energy Stock Down 9.3%

FCEL stock opened at $19.08 on Tuesday. FuelCell Energy has a fifty-two week low of $3.78 and a fifty-two week high of $37.88. The company has a debt-to-equity ratio of 0.18, a current ratio of 8.59 and a quick ratio of 7.20. The stock has a market capitalization of $1.29 billion, a price-to-earnings ratio of -2.90 and a beta of 2.31. The business's fifty day moving average price is $21.53 and its two-hundred day moving average price is $12.73.

FuelCell Energy (NASDAQ:FCEL - Get Free Report) last released its quarterly earnings results on Monday, June 8th. The energy company reported ($0.53) EPS for the quarter, missing analysts' consensus estimates of $0.52 by ($1.05). FuelCell Energy had a negative return on equity of 15.90% and a negative net margin of 132.41%.The business had revenue of $35.59 million for the quarter, compared to the consensus estimate of $40.47 million. During the same period in the prior year, the business posted ($1.79) earnings per share. On average, equities analysts anticipate that FuelCell Energy will post -1.84 earnings per share for the current year.

Insider Transactions at FuelCell Energy

In related news, EVP Shankar Achanta sold 2,500 shares of FuelCell Energy stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $28.71, for a total value of $71,775.00. Following the transaction, the executive vice president directly owned 2,618 shares of the company's stock, valued at $75,162.78. This trade represents a 48.85% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 5.46% of the stock is owned by company insiders.

Hedge Funds Weigh In On FuelCell Energy

Institutional investors have recently added to or reduced their stakes in the stock. Legal & General Group Plc acquired a new position in shares of FuelCell Energy during the fourth quarter worth $21,149,000. CenterBook Partners LP acquired a new stake in shares of FuelCell Energy during the 4th quarter valued at $9,348,000. Two Sigma Investments LP acquired a new stake in shares of FuelCell Energy during the 3rd quarter valued at $5,348,000. Invesco Ltd. grew its position in FuelCell Energy by 75.4% during the 4th quarter. Invesco Ltd. now owns 1,505,430 shares of the energy company's stock worth $11,005,000 after acquiring an additional 647,151 shares during the last quarter. Finally, Trexquant Investment LP grew its position in FuelCell Energy by 162.3% during the 4th quarter. Trexquant Investment LP now owns 894,800 shares of the energy company's stock worth $6,541,000 after acquiring an additional 553,660 shares during the last quarter. 42.78% of the stock is currently owned by institutional investors and hedge funds.

FuelCell Energy Company Profile

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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