FuelCell Energy (NASDAQ:FCEL) Sees Strong Trading Volume - Still a Buy?

Key Points

• Shares saw heavy trading — 3,174,941 shares changed hands (up 73% vs. prior session) and the stock traded up to $9.71 from the prior close of $8.65.
• Analyst sentiment is weak: the consensus rating is Reduce with an average price target of $8.24 after multiple downgrades (Wells Fargo cut its target to $6 and set an "underweight").
• Recent quarter beat EPS estimates (loss of $0.52 vs. est. -$0.68) but missed revenue ($30.53M vs. est. $42.22M); the company remains unprofitable with negative margins and ROE and a market cap around $514M.

Shares of FuelCell Energy, Inc. (NASDAQ:FCEL - Get Free Report) saw strong trading volume on Tuesday . 3,174,941 shares changed hands during mid-day trading, an increase of 73% from the previous session's volume of 1,832,400 shares.The stock last traded at $9.7110 and had previously closed at $8.65.

Analyst Ratings Changes

A number of equities analysts recently weighed in on FCEL shares. Zacks Research cut FuelCell Energy from a "strong-buy" rating to a "hold" rating in a research note on Friday, January 16th. Wells Fargo & Company lowered their price objective on FuelCell Energy from $7.00 to $6.00 and set an "underweight" rating on the stock in a research note on Tuesday, March 10th. Jefferies Financial Group set a $7.20 price objective on FuelCell Energy and gave the company a "hold" rating in a research note on Tuesday, March 10th. Wall Street Zen cut FuelCell Energy from a "hold" rating to a "sell" rating in a research note on Friday, January 23rd. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of FuelCell Energy in a research note on Monday, December 29th. 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, the company has a consensus rating of "Reduce" and an average price target of $8.24.

FuelCell Energy Price Performance

The company has a quick ratio of 6.51, a current ratio of 7.96 and a debt-to-equity ratio of 0.19. The business's 50-day simple moving average is $7.25 and its 200 day simple moving average is $7.82. The firm has a market capitalization of $513.75 million, a P/E ratio of -1.44 and a beta of 1.41.

FuelCell Energy (NASDAQ:FCEL - Get Free Report) last released its quarterly earnings data on Monday, March 9th. The energy company reported ($0.52) earnings per share for the quarter, beating analysts' consensus estimates of ($0.68) by $0.16. The firm had revenue of $30.53 million during the quarter, compared to analyst estimates of $42.22 million. FuelCell Energy had a negative return on equity of 17.76% and a negative net margin of 107.51%. Sell-side analysts forecast that FuelCell Energy, Inc. will post -1.98 earnings per share for the current year.

Institutional Trading of FuelCell Energy

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. GSA Capital Partners LLP bought a new position in FuelCell Energy in the third quarter worth $944,000. Jump Financial LLC bought a new position in FuelCell Energy in the fourth quarter worth $664,000. Dimensional Fund Advisors LP raised its holdings in FuelCell Energy by 131.6% in the fourth quarter. Dimensional Fund Advisors LP now owns 55,896 shares of the energy company's stock worth $409,000 after purchasing an additional 31,758 shares in the last quarter. Hudson Bay Capital Management LP bought a new position in FuelCell Energy in the fourth quarter worth $379,000. Finally, OMERS ADMINISTRATION Corp bought a new position in FuelCell Energy in the fourth quarter worth $250,000. Hedge funds and other institutional investors own 42.78% of the company's stock.

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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