FuelCell Energy (NASDAQ:FCEL) Trading Up 8% - Time to Buy?

Key Points

• FuelCell Energy shares rose 8% to about $20.73, although trading volume was 65% below the average daily level.
• Analyst views remain mixed: Canaccord and UBS upgraded the stock with targets of $30 and $27, while Wells Fargo maintained an underweight rating and Wall Street Zen downgraded it to sell. The consensus rating is Hold, with 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 weaker than analyst expectations. FuelCell Energy continues to show significant losses, with a negative net margin of 132.41% and analysts forecasting a full-year loss of $1.73 per share.

Shares of FuelCell Energy, Inc. (NASDAQ:FCEL - Get Free Report) were up 8% during trading on Wednesday . The company traded as high as $21.25 and last traded at $20.7320. 2,422,895 shares changed hands during trading, a decline of 65% from the average daily volume of 6,952,658 shares. The stock had previously closed at $19.20.

Analysts Set New Price Targets

FCEL has been the subject of several research analyst reports. Wall Street Zen downgraded shares of FuelCell Energy from a "hold" rating to a "sell" rating in a research report on Sunday. TD Cowen reiterated a "hold" rating and set a $16.00 price objective (up from $9.00) on shares of FuelCell Energy in a research note on Tuesday, June 9th. Canaccord Genuity Group raised their target price on FuelCell Energy from $12.00 to $30.00 and gave the company a "buy" rating in a research report on Tuesday, June 9th. Wells Fargo & Company lifted their price target on FuelCell Energy from $6.00 to $8.00 and gave the stock an "underweight" rating in a research note on Tuesday, June 16th. Finally, UBS Group upgraded FuelCell Energy from a "neutral" rating to a "buy" rating and boosted their price target for the stock from $22.00 to $27.00 in a research report on Tuesday, July 14th. Four equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $22.83.

FuelCell Energy Trading Up 10.8%

The firm has a market capitalization of $1.70 billion, a price-to-earnings ratio of -3.24 and a beta of 2.37. The company has a fifty day moving average price of $21.83 and a two-hundred day moving average price of $14.61. The company has a current ratio of 8.59, a quick ratio of 7.20 and a debt-to-equity ratio of 0.18.

FuelCell Energy (NASDAQ:FCEL - Get Free Report) last posted its quarterly earnings results on Monday, June 8th. The energy company reported ($0.53) EPS for the quarter, missing the consensus estimate of $0.52 by ($1.05). The company had revenue of $35.59 million during the quarter, compared to analyst estimates 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 in the prior year, the business posted ($1.79) EPS. As a group, research analysts forecast 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 company's stock in a transaction dated Monday, July 6th. The shares were 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 represents a 48.85% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Insiders own 5.46% of the company's stock.

Institutional Trading of FuelCell Energy

A number of hedge funds and other institutional investors have recently made changes to their positions in FCEL. Kestra Advisory Services LLC acquired a new position in FuelCell Energy in the fourth quarter valued at approximately $29,000. Caitong International Asset Management Co. Ltd raised its position in 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 acquired a new position in shares of FuelCell Energy in the 4th quarter valued at $78,000. Franklin Resources Inc. purchased a new position in shares of FuelCell Energy during the 4th quarter worth $84,000. Finally, Optiver Holding B.V. acquired a new stake in shares of FuelCell Energy during the 1st quarter worth about $88,000. Institutional investors and hedge funds own 42.78% of the company's stock.

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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