FuelCell Energy (NASDAQ:FCEL) Shares Gap Up - Still a Buy?

Key Points

• FuelCell Energy shares gapped up on Monday, opening at $19.33 after closing at $18.50, and last traded around $19.36 on heavy volume of more than 2.08 million shares.
• Analyst views remain mixed, with UBS upgrading the stock to buy and lifting its target to $27, while other firms issued hold, sell, or underweight calls. Overall, MarketBeat shows a Hold consensus and an average target price of $22.83.
• The company’s latest earnings were weak, as it reported a loss of $0.53 per share versus expectations of a profit, and revenue also missed estimates. Insiders recently sold shares, though institutional ownership remains significant at 42.78%.

Shares of FuelCell Energy, Inc. (NASDAQ:FCEL - Get Free Report) gapped up prior to trading on Monday . The stock had previously closed at $18.50, but opened at $19.33. FuelCell Energy shares last traded at $19.3640, with a volume of 2,084,987 shares traded.

Analyst Ratings Changes

A number of brokerages have recently weighed in on FCEL. Wall Street Zen downgraded FuelCell Energy from a "hold" rating to a "sell" rating in a research note on Saturday, June 13th. KeyCorp reaffirmed a "sector weight" rating on shares of FuelCell Energy in a research report on Tuesday, June 9th. Weiss Ratings upgraded FuelCell Energy from a "sell (e+)" rating to a "sell (d-)" rating in a report on Wednesday, May 20th. UBS Group raised FuelCell Energy from a "neutral" rating to a "buy" rating and boosted their price objective for the stock from $22.00 to $27.00 in a research report on Tuesday, July 14th. Finally, Wells Fargo & Company upped their price objective on FuelCell Energy from $6.00 to $8.00 and gave the company an "underweight" rating in a research note on Tuesday, June 16th. Four equities research 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's stock. According to MarketBeat.com, FuelCell Energy presently has a consensus rating of "Hold" and an average target price of $22.83.

FuelCell Energy Price Performance

The company has a current ratio of 8.59, a quick ratio of 7.20 and a debt-to-equity ratio of 0.18. The business's fifty day moving average is $22.03 and its 200 day moving average is $13.04. The company has a market cap of $1.31 billion, a P/E ratio of -2.94 and a beta of 2.31.

FuelCell Energy (NASDAQ:FCEL - Get Free Report) last announced its quarterly earnings data on Monday, June 8th. The energy company reported ($0.53) earnings per share for the quarter, missing the consensus estimate of $0.52 by ($1.05). The firm had revenue of $35.59 million for the quarter, compared to the consensus estimate of $40.47 million. FuelCell Energy had a negative net margin of 132.41% and a negative return on equity of 15.90%. During the same period last year, the company posted ($1.79) earnings per share. As a group, sell-side analysts anticipate that FuelCell Energy, Inc. will post -1.84 EPS for the current year.

Insider Buying and Selling at FuelCell Energy

In related news, EVP Shankar Achanta sold 2,500 shares of FuelCell Energy 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 completion of the sale, the executive vice president owned 2,618 shares of the company's stock, 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 SEC, which can be accessed through this hyperlink. Insiders own 5.46% of the company's stock.

Institutional Investors Weigh In On FuelCell Energy

Several institutional investors have recently added to or reduced their stakes in the business. Kestra Advisory Services LLC purchased a new position in shares of FuelCell Energy in the fourth quarter worth about $29,000. Caitong International Asset Management Co. Ltd raised its position in shares of 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 purchasing an additional 7,080 shares during the period. IQ EQ FUND MANAGEMENT IRELAND Ltd purchased a new stake in shares of FuelCell Energy during the 4th quarter valued at approximately $78,000. Franklin Resources Inc. purchased a new stake in shares of FuelCell Energy during the 4th quarter valued at approximately $84,000. Finally, Optiver Holding B.V. bought a new position in FuelCell Energy in the 1st quarter worth approximately $88,000. 42.78% of the stock is owned by hedge funds and other institutional investors.

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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