FuelCell Energy (NASDAQ:FCEL) Shares Gap Down - Time to Sell?

Key Points

• FuelCell Energy shares fell sharply, opening at $18.69 after closing at $19.54 and later trading around $17.67.
• Analyst opinions are mixed: four analysts rate the stock Buy, three Hold, and two Sell, resulting in a consensus Hold rating and an average price target of $22.83.
• The company reported a quarterly loss of $0.53 per share and revenue of $35.59 million, both below expectations; analysts forecast a full-year loss of $1.73 per share.

FuelCell Energy, Inc. (NASDAQ:FCEL - Get Free Report) gapped down prior to trading on Monday . The stock had previously closed at $19.54, but opened at $18.69. FuelCell Energy shares last traded at $17.6710, with a volume of 1,595,996 shares traded.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on the company. Wall Street Zen downgraded FuelCell Energy from a "hold" rating to a "sell" rating in a research note on Sunday, August 9th. Weiss Ratings reiterated a "sell (d-)" rating on shares of FuelCell Energy in a research report on Monday, August 17th. B. Riley Financial upgraded shares of FuelCell Energy from a "neutral" rating to a "buy" rating and raised their price objective for the company from $13.00 to $32.00 in a research report on Monday, June 29th. Canaccord Genuity Group upped their target price on shares of FuelCell Energy from $12.00 to $30.00 and gave the stock a "buy" rating in a report on Tuesday, June 9th. Finally, UBS Group upgraded FuelCell Energy from a "neutral" rating to a "buy" rating and increased their price target for the stock from $22.00 to $27.00 in a research note on Tuesday, July 14th. Four analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $22.83.

FuelCell Energy Stock Performance

The firm's 50-day moving average price is $22.27 and its 200-day moving average price is $15.27. 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 cap of $1.47 billion, a P/E ratio of -2.81 and a beta of 2.37.

FuelCell Energy (NASDAQ:FCEL - Get Free Report) last issued its 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). The company had revenue of $35.59 million for the quarter, compared to the consensus estimate of $40.47 million. FuelCell Energy had a negative return on equity of 15.90% and a negative net margin of 132.41%.During the same quarter in the prior year, the company posted ($1.79) EPS. Sell-side analysts expect that FuelCell Energy, Inc. will post -1.73 earnings per share for the current fiscal year.

Insider Buying and Selling at FuelCell Energy

In related news, EVP Shankar Achanta sold 2,500 shares of the business's stock in a transaction dated Monday, July 6th. The stock was sold at an average price of $28.71, for a total value of $71,775.00. Following the sale, the executive vice president directly owned 2,618 shares in the company, valued at approximately $75,162.78. The trade was a 48.85% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 5.46% of the stock is currently owned by insiders.

Institutional Trading of FuelCell Energy

Large investors have recently added to or reduced their stakes in the company. Hollencrest Capital Management purchased a new position in FuelCell Energy in the second quarter worth about $90,000. Kestra Advisory Services LLC bought a new stake in shares of FuelCell Energy in the 4th quarter valued at approximately $29,000. Bank of America Corp DE boosted its holdings in shares of FuelCell Energy by 31.9% in the 2nd quarter. Bank of America Corp DE now owns 18,351 shares of the energy company's stock worth $103,000 after purchasing an additional 4,435 shares during the period. Rhumbline Advisers increased its position in shares of FuelCell Energy by 21.1% during the 1st quarter. Rhumbline Advisers now owns 32,012 shares of the energy company's stock valued at $147,000 after purchasing an additional 5,585 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd raised its holdings in FuelCell Energy by 1,316.0% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 7,618 shares of the energy company's stock valued at $59,000 after buying an additional 7,080 shares during the period. Institutional investors own 42.78% of the company's stock.

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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