FuelCell Energy (NASDAQ:FCEL) Shares Gap Up - Should You Buy?

Key Points

• FuelCell Energy shares gapped up Wednesday, opening at $11.40 after a prior close of $9.94 and last trading around $11.10 on roughly 2.37 million shares.
• Analyst sentiment is largely negative — seven Hold and two Sell ratings result in a consensus "Reduce" and a consensus price target of $8.24, with several recent downgrades and target cuts (e.g., Jefferies $7.20, Wells Fargo $6.00).
• Company fundamentals remain weak: quarterly EPS loss of ($0.52) beat estimates while revenue missed ($30.5M vs. $42.2M), the firm is unprofitable with a negative net margin, and analysts forecast about -1.98 EPS for the year.

FuelCell Energy, Inc. (NASDAQ:FCEL - Get Free Report)'s stock price gapped up before the market opened on Wednesday . The stock had previously closed at $9.94, but opened at $11.40. FuelCell Energy shares last traded at $11.0960, with a volume of 2,369,918 shares.

Analyst Upgrades and Downgrades

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

FuelCell Energy Stock Performance

The firm has a market capitalization of $684.40 million, a P/E ratio of -1.85 and a beta of 1.41. The company has a current ratio of 7.96, a quick ratio of 6.51 and a debt-to-equity ratio of 0.19. The company has a 50-day moving average of $7.69 and a 200-day moving average of $7.86.

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 the consensus estimate of ($0.68) by $0.16. The business 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%. On average, equities analysts anticipate that FuelCell Energy, Inc. will post -1.98 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of FCEL. Rhumbline Advisers raised its position in FuelCell Energy by 21.1% during the 1st quarter. Rhumbline Advisers now owns 32,012 shares of the energy company's stock worth $147,000 after purchasing an additional 5,585 shares during the last quarter. Marshall Wace LLP acquired a new stake in FuelCell Energy during the 2nd quarter worth about $122,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in FuelCell Energy by 6.3% during the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 334,793 shares of the energy company's stock worth $1,877,000 after acquiring an additional 19,857 shares during the period. Bank of America Corp DE grew its holdings in FuelCell Energy by 31.9% during the 2nd quarter. Bank of America Corp DE now owns 18,351 shares of the energy company's stock worth $103,000 after acquiring an additional 4,435 shares during the period. Finally, Brevan Howard Capital Management LP acquired a new stake in FuelCell Energy during the 2nd quarter worth about $216,000. 42.78% of the stock is 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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