FuelCell Energy (NASDAQ:FCEL) Trading Up 9.1% - Here's Why

Key Points

• FuelCell Energy shares rose 9.1% on Friday, trading as high as $18.81 after closing at $17.26 the previous day, though volume was below its average session level.
• Analyst sentiment has improved, with several firms issuing upgrades or higher price targets. UBS and Jefferies both raised the stock to Buy, and MarketBeat data shows a consensus rating of Hold with an average target price of $22.83.
• The company’s latest earnings were weak, as FuelCell Energy reported a larger-than-expected quarterly loss and revenue below estimates. Insiders also sold shares recently, while institutional investors have been increasing some positions.

Shares of FuelCell Energy, Inc. (NASDAQ:FCEL - Get Free Report) were up 9.1% during trading on Friday . The stock traded as high as $18.81 and last traded at $18.83. Approximately 3,834,039 shares were traded during mid-day trading, a decline of 43% from the average session volume of 6,723,344 shares. The stock had previously closed at $17.26.

Wall Street Analysts Forecast Growth

Several research firms have 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, May 20th. UBS Group raised shares of FuelCell Energy from a "neutral" rating to a "buy" rating and upped their price objective for the company from $22.00 to $27.00 in a research note on Tuesday. Wall Street Zen cut shares of FuelCell Energy from a "hold" rating to a "sell" rating in a research report on Saturday, June 13th. TD Cowen reissued a "hold" rating and set a $16.00 target price (up from $9.00) on shares of FuelCell Energy in a research note on Tuesday, June 9th. Finally, Jefferies Financial Group upgraded shares of FuelCell Energy from a "hold" rating to a "buy" rating and boosted their target price for the company from $16.00 to $24.00 in a report on Friday, June 26th. Four investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $22.83.

FuelCell Energy Price Performance

The stock has a market capitalization of $1.27 billion, a P/E ratio of -2.85 and a beta of 2.31. The business has a fifty day simple moving average of $21.93 and a 200-day simple moving average of $12.97. The company has a debt-to-equity ratio of 0.18, a quick ratio of 7.20 and a current ratio of 8.59.

FuelCell Energy (NASDAQ:FCEL - Get Free Report) last released 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). FuelCell Energy had a negative net margin of 132.41% and a negative return on equity of 15.90%. The company had revenue of $35.59 million during the quarter, compared to the consensus estimate of $40.47 million. During the same quarter in the prior year, the firm earned ($1.79) EPS. Sell-side analysts expect that FuelCell Energy, Inc. will post -1.84 earnings per share for the current fiscal year.

Insider Activity at FuelCell Energy

In other news, EVP Shankar Achanta sold 2,500 shares of the business's stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $28.71, for a total transaction of $71,775.00. Following the completion of the sale, the executive vice president owned 2,618 shares in the company, valued at $75,162.78. The trade was a 48.85% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 5.46% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On FuelCell Energy

A number of institutional investors and hedge funds have recently made changes to their positions in FCEL. Doliver Advisors LP bought a new stake in FuelCell Energy during the 2nd quarter worth approximately $360,000. KMG Fiduciary Partners LLC bought a new position in shares of FuelCell Energy in the second quarter valued at approximately $324,000. Optiver Holding B.V. purchased a new position in shares of FuelCell Energy during the first quarter valued at approximately $88,000. Bank of America Corp DE grew its holdings in FuelCell Energy by 1,298.3% during the first quarter. Bank of America Corp DE now owns 190,724 shares of the energy company's stock worth $1,245,000 after buying an additional 177,084 shares in the last quarter. Finally, Amundi grew its holdings in FuelCell Energy by 118.4% during the first quarter. Amundi now owns 50,947 shares of the energy company's stock worth $333,000 after buying an additional 27,621 shares in the last quarter. 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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