FuelCell Energy (NASDAQ:FCEL) Trading Up 15.6% - Here's Why

Key Points

• FuelCell Energy shares jumped about 15.6% intraday (trading as high as $11.32 and last at $10.97) on heavy volume of ~4.18 million shares, roughly double its average daily trading volume.
• Analysts are broadly negative: seven Hold and two Sell ratings, a MarketBeat consensus “Reduce” and a consensus price target of $8.24, with recent price-target cuts from firms including Jefferies and Wells Fargo.
• In the latest quarter FCEL beat EPS expectations (loss of $0.52 vs. est. $0.68) but missed revenue ($30.5M vs. $42.2M) and remains unprofitable with negative margins and ROE.

FuelCell Energy, Inc. (NASDAQ:FCEL - Get Free Report) was up 15.6% on Wednesday . The stock traded as high as $11.32 and last traded at $10.97. Approximately 4,179,451 shares traded hands during trading, an increase of 100% from the average daily volume of 2,088,693 shares. The stock had previously closed at $9.49.

Analysts Set New Price Targets

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

FuelCell Energy Trading Up 21.5%

The firm has a market capitalization of $610.75 million, a PE ratio of -1.66 and a beta of 1.41. The company has a debt-to-equity ratio of 0.19, a quick ratio of 6.51 and a current ratio of 7.96. The firm has a fifty day moving average of $7.29 and a 200 day moving average of $7.82.

FuelCell Energy (NASDAQ:FCEL - Get Free Report) last announced its earnings results on Monday, March 9th. The energy company reported ($0.52) EPS for the quarter, beating the consensus estimate of ($0.68) by $0.16. The business had revenue of $30.53 million for the quarter, compared to the consensus estimate of $42.22 million. FuelCell Energy had a negative return on equity of 17.76% and a negative net margin of 107.51%. Equities research analysts expect that FuelCell Energy, Inc. will post -1.98 EPS for the current year.

Institutional Investors Weigh In On FuelCell Energy

Several hedge funds have recently modified their holdings of FCEL. Kestra Advisory Services LLC purchased a new stake in shares of FuelCell Energy during the 4th quarter valued at about $29,000. Caitong International Asset Management Co. Ltd raised its holdings in shares of 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. IQ EQ FUND MANAGEMENT IRELAND Ltd acquired a new stake in FuelCell Energy during the 4th quarter valued at approximately $78,000. Independent Advisor Alliance acquired a new stake in FuelCell Energy during the 3rd quarter valued at approximately $80,000. Finally, Franklin Resources Inc. acquired a new stake in FuelCell Energy during the 4th quarter valued at approximately $84,000. 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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