FuelCell Energy (NASDAQ:FCEL) Sees Strong Trading Volume - Should You Buy?

Key Points

• Analysts have a consensus rating of Reduce with a consensus target price of $8.24; most brokerages rate FCEL as Hold or Sell and recent price targets have been cut to roughly $6–$7.20, well below the stock's last trade of $13.00.
• FuelCell remains unprofitable—reporting a negative net margin (−107.51%) and negative ROE—with the latest quarter beating EPS estimates ($‑0.52 vs. $‑0.68) but missing revenue materially ($30.53M vs. $42.22M); sell-side forecasts ~‑2.18 EPS for the fiscal year.
• Trading volume was about 2.45M shares (down 12% from the prior session), market cap is ~$690.7M, institutional ownership is 42.78%, and the company shows strong liquidity (quick ratio 6.51, current ratio 7.96) with low leverage (debt/equity 0.19).

Shares of FuelCell Energy, Inc. (NASDAQ:FCEL - Get Free Report) saw an uptick in trading volume on Friday . 2,454,614 shares were traded during trading, a decline of 12% from the previous session's volume of 2,784,668 shares.The stock last traded at $13.00 and had previously closed at $13.00.

Analyst Ratings Changes

Several brokerages have weighed in on FCEL. Wells Fargo & Company decreased their price objective on shares of FuelCell Energy from $7.00 to $6.00 and set an "underweight" rating on the stock in a research note on Tuesday, March 10th. Weiss Ratings upgraded shares of FuelCell Energy from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Wednesday, April 22nd. Wall Street Zen lowered FuelCell Energy from a "hold" rating to a "sell" rating in a research report on Friday, January 23rd. Zacks Research cut FuelCell Energy from a "strong-buy" rating to a "hold" rating in a report on Friday, January 16th. Finally, Jefferies Financial Group set a $7.20 price objective on FuelCell Energy and gave the company a "hold" rating in a research report on Tuesday, March 10th. Seven analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, FuelCell Energy has a consensus rating of "Reduce" and a consensus target price of $8.24.

FuelCell Energy Stock Up 0.3%

The stock has a market cap of $690.70 million, a price-to-earnings ratio of -1.88 and a beta of 1.41. The company has a debt-to-equity ratio of 0.19, a quick ratio of 6.51 and a current ratio of 7.96. The firm's 50-day simple moving average is $7.92 and its two-hundred day simple moving average is $7.93.

FuelCell Energy (NASDAQ:FCEL - Get Free Report) last announced its earnings results on Monday, March 9th. The energy company reported ($0.52) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.68) by $0.16. The company had revenue of $30.53 million for the quarter, compared to analyst estimates of $42.22 million. FuelCell Energy had a negative net margin of 107.51% and a negative return on equity of 17.76%. On average, sell-side analysts expect that FuelCell Energy, Inc. will post -2.18 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. Kestra Advisory Services LLC bought a new stake in shares of FuelCell Energy during the fourth quarter worth $29,000. Caitong International Asset Management Co. Ltd boosted its holdings in FuelCell Energy by 1,316.0% in the third quarter. Caitong International Asset Management Co. Ltd now owns 7,618 shares of the energy company's stock valued at $59,000 after acquiring an additional 7,080 shares during the last quarter. Independent Advisor Alliance acquired a new stake in FuelCell Energy in the third quarter worth about $80,000. IQ EQ FUND MANAGEMENT IRELAND Ltd acquired a new stake in FuelCell Energy in the fourth quarter worth about $78,000. Finally, Franklin Resources Inc. bought a new stake in FuelCell Energy during the 4th quarter worth about $84,000. 42.78% of the stock is currently owned by institutional investors.

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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