FuelCell Energy (NASDAQ:FCEL) Sees Large Volume Increase Following Analyst Upgrade

Key Points

• FuelCell Energy shares jumped on heavy volume after UBS Group upgraded the stock from neutral to buy and raised its price target to $27 from $22. The stock traded at $21.38, above its prior close of $19.08.
• Analyst sentiment remains mixed overall, with FuelCell Energy carrying an average “Hold” rating and a consensus price target of $22.83. Recent calls ranged from bullish upgrades by UBS and B. Riley to bearish or cautious ratings from Wells Fargo and Wall Street Zen.
• Recent fundamentals were weak despite the stock move: the company reported a quarterly loss of $0.53 per share on revenue of $35.59 million, missing revenue estimates. Management also saw insider selling, including an EVP who sold 2,500 shares in early July.

FuelCell Energy, Inc. (NASDAQ:FCEL - Get Free Report) shares saw strong trading volume on Tuesday after UBS Group upgraded the stock from a neutral rating to a buy rating. UBS Group now has a $27.00 price target on the stock, up from their previous price target of $22.00. 5,397,808 shares traded hands during trading, a decline of 18% from the previous session's volume of 6,590,349 shares.The stock last traded at $21.3760 and had previously closed at $19.08.

Other equities analysts have also recently issued reports about the company. TD Cowen reiterated a "hold" rating and set a $16.00 target price (up from $9.00) on shares of FuelCell Energy in a research note on Tuesday, June 9th. Wells Fargo & Company lifted their price target on shares of FuelCell Energy from $6.00 to $8.00 and gave the stock an "underweight" rating in a research note on Tuesday, June 16th. B. Riley Financial raised shares of FuelCell Energy from a "neutral" rating to a "buy" rating and upped their price target for the company from $13.00 to $32.00 in a report on Monday, June 29th. Wall Street Zen downgraded shares of FuelCell Energy from a "hold" rating to a "sell" rating in a research note on Saturday, June 13th. Finally, Weiss Ratings raised shares of FuelCell Energy from a "sell (e+)" rating to a "sell (d-)" rating in a report on Wednesday, May 20th. Four research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, FuelCell Energy presently has an average rating of "Hold" and an average target price of $22.83.

Insider Activity at FuelCell Energy

In other news, EVP Shankar Achanta sold 2,500 shares of FuelCell Energy stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $28.71, for a total value of $71,775.00. Following the completion of the transaction, the executive vice president owned 2,618 shares in the company, valued at approximately $75,162.78. This trade represents a 48.85% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 5.46% of the company's stock.

Institutional Trading of FuelCell Energy

A number of institutional investors and hedge funds have recently modified their holdings of FCEL. Legal & General Group Plc acquired a new position in shares of FuelCell Energy in the 4th quarter valued at about $21,149,000. CenterBook Partners LP acquired a new stake in FuelCell Energy during the fourth quarter worth about $9,348,000. Two Sigma Investments LP bought a new position in FuelCell Energy in the third quarter worth about $5,348,000. Invesco Ltd. lifted its holdings in FuelCell Energy by 75.4% in the fourth 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 boosted its stake in FuelCell Energy by 162.3% in the fourth quarter. Trexquant Investment LP now owns 894,800 shares of the energy company's stock valued at $6,541,000 after acquiring an additional 553,660 shares during the period. 42.78% of the stock is owned by institutional investors and hedge funds.

FuelCell Energy Stock Performance

The company has a market capitalization of $1.46 billion, a price-to-earnings ratio of -3.28 and a beta of 2.31. The stock has a 50 day simple moving average of $21.53 and a 200 day simple moving average of $12.73. The company has a quick ratio of 7.20, a current ratio of 8.59 and a debt-to-equity ratio of 0.18.

FuelCell Energy (NASDAQ:FCEL - Get Free Report) last announced its quarterly earnings results on Monday, June 8th. The energy company reported ($0.53) earnings per share 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 company had revenue of $35.59 million for the quarter, compared to analyst estimates of $40.47 million. During the same quarter in the previous year, the company posted ($1.79) earnings per share. As a group, analysts anticipate that FuelCell Energy, Inc. will post -1.84 earnings per share for the current fiscal year.

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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