FuelCell Energy Target of Unusually High Options Trading (NASDAQ:FCEL)

Key Points

• FuelCell Energy saw unusually heavy options activity on Monday, with 27,826 call options traded — about 250% above its average daily volume.
• The stock jumped 22.5% to $16.78 on much higher-than-normal trading volume, despite still carrying a negative P/E and elevated volatility.
• Analysts remain cautious: several recent rating cuts left FCEL with a consensus “Reduce” rating and an average price target of $8.24, even though the company beat EPS estimates in its latest quarter.

FuelCell Energy, Inc. (NASDAQ:FCEL - Get Free Report) was the recipient of some unusual options trading activity on Monday. Investors purchased 27,826 call options on the stock. This represents an increase of 250% compared to the average daily volume of 7,961 call options.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Zurcher Kantonalbank Zurich Cantonalbank boosted its stake in FuelCell Energy by 31,021.5% during the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 147,516 shares of the energy company's stock worth $1,078,000 after acquiring an additional 147,042 shares in the last quarter. GSA Capital Partners LLP bought a new position in FuelCell Energy during the third quarter worth $944,000. Amundi bought a new position in FuelCell Energy during the fourth quarter worth $171,000. Panagora Asset Management Inc. bought a new position in FuelCell Energy during the fourth quarter worth $166,000. Finally, Rhumbline Advisers boosted its stake in FuelCell Energy by 21.1% during the first quarter. Rhumbline Advisers now owns 32,012 shares of the energy company's stock worth $147,000 after acquiring an additional 5,585 shares in the last quarter. 42.78% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on the stock. Weiss Ratings cut shares of FuelCell Energy from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Wednesday. Jefferies Financial Group set a $7.20 price target on shares of FuelCell Energy and gave the company a "hold" rating in a research report on Tuesday, March 10th. Wells Fargo & Company decreased their price target on shares of FuelCell Energy from $7.00 to $6.00 and set an "underweight" rating for the company in a research report on Tuesday, March 10th. Wall Street Zen lowered shares of FuelCell Energy from a "hold" rating to a "sell" rating in a research note on Friday, January 23rd. Finally, Zacks Research cut shares of FuelCell Energy from a "strong-buy" rating to a "hold" rating in a research report on Friday, January 16th. Seven equities research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Reduce" and a consensus target price of $8.24.

FuelCell Energy Trading Up 22.5%

Shares of FCEL traded up $3.08 during trading hours on Monday, hitting $16.78. 7,899,862 shares of the stock were exchanged, compared to its average volume of 3,266,383. FuelCell Energy has a fifty-two week low of $3.78 and a fifty-two week high of $16.49. The company has a debt-to-equity ratio of 0.19, a current ratio of 7.96 and a quick ratio of 6.51. The business has a 50-day moving average of $8.20 and a 200-day moving average of $7.97. The firm has a market capitalization of $889.06 million, a P/E ratio of -2.43 and a beta of 2.22.

FuelCell Energy (NASDAQ:FCEL - Get Free Report) last posted its quarterly earnings data on Monday, March 9th. The energy company reported ($0.52) earnings per share for the quarter, topping the consensus estimate of ($0.68) by $0.16. FuelCell Energy had a negative net margin of 107.51% and a negative return on equity of 17.76%. The company had revenue of $30.53 million during the quarter, compared to analysts' expectations of $42.22 million. On average, research analysts expect that FuelCell Energy will post -2.18 EPS for the current year.

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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