Nextpower (NASDAQ:NXT) Shares Gap Up - Should You Buy?

Key Points

• Nextpower shares gapped up before trading, opening at $115.73 after closing at $110.66 and later trading around $117.27, up about 3.7% on the day.
• Wall Street remains broadly bullish: among recent analyst updates, several firms raised price targets, and the stock now carries a Moderate Buy consensus with an average target of $147.52.
• The company recently beat earnings expectations, reporting $1.05 EPS versus $0.89 expected and revenue of $880.52 million, though insiders have also been selling shares in recent months.

Nextpower Inc. (NASDAQ:NXT - Get Free Report)'s share price gapped up prior to trading on Tuesday . The stock had previously closed at $110.66, but opened at $115.73. Nextpower shares last traded at $117.2670, with a volume of 340,488 shares traded.

Wall Street Analyst Weigh In

NXT has been the subject of a number of recent research reports. Royal Bank Of Canada lifted their price target on shares of Nextpower from $146.00 to $149.00 and gave the company an "outperform" rating in a research report on Friday, May 29th. Glj Research raised their target price on shares of Nextpower from $147.00 to $149.44 and gave the company a "buy" rating in a research note on Wednesday, June 3rd. TD Cowen lifted their target price on shares of Nextpower from $105.00 to $135.00 and gave the company a "hold" rating in a report on Wednesday, May 13th. Wells Fargo & Company lifted their target price on shares of Nextpower from $143.00 to $151.00 and gave the company an "overweight" rating in a report on Friday, May 29th. Finally, Susquehanna boosted their price target on Nextpower from $161.00 to $180.00 and gave the stock a "positive" rating in a research report on Monday, June 1st. Twenty equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $147.52.

Nextpower Trading Up 3.7%

The company has a market capitalization of $17.24 billion, a PE ratio of 29.96, a price-to-earnings-growth ratio of 2.52 and a beta of 1.73. The business's fifty day moving average is $126.18 and its two-hundred day moving average is $113.73.

Nextpower (NASDAQ:NXT - Get Free Report) last released its quarterly earnings data on Tuesday, May 12th. The company reported $1.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.89 by $0.16. The business had revenue of $880.52 million for the quarter, compared to analysts' expectations of $826.26 million. Nextpower had a return on equity of 28.18% and a net margin of 16.46%.Nextpower has set its FY 2027 guidance at 4.210-4.590 EPS. As a group, equities research analysts anticipate that Nextpower Inc. will post 3.71 EPS for the current year.

Insider Activity at Nextpower

In related news, COO Nicholas Marco Miller sold 22,427 shares of the stock in a transaction on Friday, May 29th. The stock was sold at an average price of $156.00, for a total transaction of $3,498,612.00. Following the sale, the chief operating officer directly owned 186,194 shares of the company's stock, valued at $29,046,264. This trade represents a 10.75% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Daniel S. Shugar sold 26,077 shares of Nextpower stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $134.72, for a total value of $3,513,093.44. Following the completion of the sale, the chief executive officer owned 931,419 shares of the company's stock, valued at $125,480,767.68. The trade was a 2.72% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 168,574 shares of company stock valued at $22,559,770 over the last three months. 0.56% of the stock is owned by insiders.

Institutional Trading of Nextpower

A number of large investors have recently made changes to their positions in NXT. Smartleaf Asset Management LLC boosted its holdings in Nextpower by 107.6% in the fourth quarter. Smartleaf Asset Management LLC now owns 299 shares of the company's stock worth $26,000 after purchasing an additional 155 shares during the last quarter. Whittier Trust Co. of Nevada Inc. raised its stake in Nextpower by 268.7% during the 4th quarter. Whittier Trust Co. of Nevada Inc. now owns 306 shares of the company's stock valued at $28,000 after buying an additional 223 shares during the last quarter. Signature Equity Partners LLC raised its stake in Nextpower by 76.4% during the 1st quarter. Signature Equity Partners LLC now owns 261 shares of the company's stock valued at $31,000 after buying an additional 113 shares during the last quarter. Huntington National Bank lifted its holdings in shares of Nextpower by 480.3% during the 4th quarter. Huntington National Bank now owns 383 shares of the company's stock valued at $33,000 after buying an additional 317 shares during the period. Finally, Foster Dykema Cabot & Partners LLC purchased a new position in shares of Nextpower in the 3rd quarter worth $36,000. 67.41% of the stock is currently owned by institutional investors.

Nextpower Company Profile

Nextpower, formerly known as Nextracker, is traded on NASDAQ under the symbol NXT and is a leading provider of advanced solar tracking solutions for utility-scale and distributed energy projects. The company specializes in the design, engineering and manufacturing of single-axis tracker systems that optimize the capture of solar energy by following the sun’s trajectory throughout the day. Nextpower’s core hardware offerings aim to enhance energy yield, reduce balance-of-system costs and simplify installation and maintenance for downstream solar developers and operators.

In addition to its tracker hardware, Nextpower provides a suite of digital software and analytics tools to maximize asset performance.

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