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

Key Points

• FuelCell Energy shares opened higher, rising from a prior close of $19.83 to $20.78 before trading near $20.09, with more than 1.35 million shares changing hands.
• Analyst sentiment is mixed but improving: four analysts rate the stock Buy, three Hold, and two Sell. Recent price targets range from $24 to $32, while the consensus target is $22.83 and the overall rating remains Hold.
• The company reported a quarterly loss of $0.53 per share and revenue of $35.59 million, missing expectations on both measures. FuelCell Energy remains unprofitable, with a negative net margin of 132.41%, though institutional investors own 42.78% of its shares.

FuelCell Energy, Inc. (NASDAQ:FCEL - Get Free Report) gapped up prior to trading on Tuesday . The stock had previously closed at $19.83, but opened at $20.78. FuelCell Energy shares last traded at $20.0920, with a volume of 1,355,372 shares.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on FCEL. Wall Street Zen downgraded shares of FuelCell Energy from a "hold" rating to a "sell" rating in a research note on Sunday. B. Riley Financial upgraded FuelCell Energy from a "neutral" rating to a "buy" rating and increased their price objective for the stock from $13.00 to $32.00 in a report on Monday, June 29th. Jefferies Financial Group raised FuelCell Energy from a "hold" rating to a "buy" rating and raised their price objective for the company from $16.00 to $24.00 in a research report on Friday, June 26th. Canaccord Genuity Group increased their price target on shares of FuelCell Energy from $12.00 to $30.00 and gave the company a "buy" rating in a report on Tuesday, June 9th. Finally, UBS Group upgraded shares of FuelCell Energy from a "neutral" rating to a "buy" rating and boosted their target price for the company from $22.00 to $27.00 in a research note on Tuesday, July 14th. Four research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, FuelCell Energy has an average rating of "Hold" and a consensus target price of $22.83.

FuelCell Energy Stock Performance

The firm has a market capitalization of $1.55 billion, a PE ratio of -2.97 and a beta of 2.38. The business has a 50-day simple moving average of $21.94 and a 200-day simple moving average of $14.54. The company has a debt-to-equity ratio of 0.18, a current ratio of 8.59 and a quick ratio of 7.20.

FuelCell Energy (NASDAQ:FCEL - Get Free Report) last announced its earnings results on Monday, June 8th. The energy company reported ($0.53) EPS for the quarter, missing analysts' consensus estimates of $0.52 by ($1.05). The company had revenue of $35.59 million during the quarter, compared to analysts' expectations 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 last year, the firm posted ($1.79) EPS. Equities research 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 other news, EVP Shankar Achanta sold 2,500 shares of the stock in a transaction on Monday, July 6th. The shares were sold at an average price of $28.71, for a total value of $71,775.00. Following the sale, the executive vice president owned 2,618 shares of the company's stock, valued at approximately $75,162.78. This represents a 48.85% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Corporate insiders own 5.46% of the company's stock.

Institutional Investors Weigh In On FuelCell Energy

Several hedge funds and other institutional investors have recently modified their holdings of FCEL. Bank of New York Mellon Corp bought a new position in FuelCell Energy in the 2nd quarter valued at $6,094,000. Doliver Advisors LP purchased a new position in shares of FuelCell Energy in the 2nd quarter worth approximately $360,000. KMG Fiduciary Partners LLC bought a new position in shares of FuelCell Energy during the 2nd quarter worth approximately $324,000. Optiver Holding B.V. purchased a new position in FuelCell Energy in the first quarter worth $88,000. Finally, Bank of America Corp DE lifted its holdings in shares of FuelCell Energy by 1,298.3% during the 1st quarter. Bank of America Corp DE now owns 190,724 shares of the energy company's stock valued at $1,245,000 after purchasing an additional 177,084 shares during the last quarter. 42.78% of the stock is currently owned by hedge funds and other 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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