Nextpower (NASDAQ:NXT) Trading Down 5.5% - Here's What Happened

Key Points

• Shares fell 5.5% to about $111.49 on Monday, trading as low as $111.93 on volume of 596,996 shares (down ~69% vs. the 1.96M average), after closing at $117.97 the prior session.
• Analysts are mixed but mildly positive: the consensus rating is a “Moderate Buy” with an average price target of $113.84, while individual targets range from ~$104–$127 (Wells Fargo $127 overweight; TD Cowen $105; BMO $104) and Wall Street Zen recently cut to a hold.
• Nextpower beat quarterly estimates with $1.10 EPS vs. $0.93 expected and $909.35M revenue vs. $812.43M expected, but insiders have been net sellers (104,348 shares sold worth ~$10.9M in the last three months, including the CEO’s sale of 59,456 shares).

Nextpower Inc. (NASDAQ:NXT - Get Free Report) shares fell 5.5% on Monday . The company traded as low as $111.93 and last traded at $111.4850. 596,996 shares were traded during mid-day trading, a decline of 69% from the average session volume of 1,955,260 shares. The stock had previously closed at $117.97.

Analysts Set New Price Targets

A number of research firms recently weighed in on NXT. Weiss Ratings restated a "buy (b-)" rating on shares of Nextpower in a report on Friday, March 27th. TD Cowen upped their price target on Nextpower from $88.00 to $105.00 and gave the stock a "hold" rating in a report on Wednesday, January 28th. Wells Fargo & Company upped their price target on Nextpower from $109.00 to $127.00 and gave the stock an "overweight" rating in a report on Wednesday, January 28th. BMO Capital Markets restated a "market perform" rating and issued a $104.00 price target on shares of Nextpower in a report on Wednesday, January 28th. Finally, Wall Street Zen cut Nextpower from a "buy" rating to a "hold" rating in a report on Saturday. One investment analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating and six have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $113.84.

Nextpower Trading Down 5.4%

The company has a market cap of $16.57 billion, a PE ratio of 28.54, a price-to-earnings-growth ratio of 2.71 and a beta of 2.02. The business has a 50 day simple moving average of $115.53 and a two-hundred day simple moving average of $100.37.

Nextpower (NASDAQ:NXT - Get Free Report) last issued its quarterly earnings results on Tuesday, January 27th. The company reported $1.10 earnings per share for the quarter, topping analysts' consensus estimates of $0.93 by $0.17. Nextpower had a return on equity of 32.01% and a net margin of 16.43%.The company had revenue of $909.35 million for the quarter, compared to analyst estimates of $812.43 million. On average, equities research analysts expect that Nextpower Inc. will post 3.29 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Nextpower news, Director William D. Watkins sold 5,000 shares of the stock in a transaction on Friday, January 30th. The stock was sold at an average price of $118.57, for a total transaction of $592,850.00. Following the transaction, the director owned 11,777 shares of the company's stock, valued at $1,396,398.89. This represents a 29.80% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, CEO Daniel S. Shugar sold 59,456 shares of the stock in a transaction on Monday, March 9th. The stock was sold at an average price of $105.17, for a total value of $6,252,987.52. Following the transaction, the chief executive officer directly owned 746,339 shares in the company, valued at approximately $78,492,472.63. This represents a 7.38% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 104,348 shares of company stock worth $10,876,525. Corporate insiders own 0.56% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the company. Vanguard Group Inc. raised its position in shares of Nextpower by 2.0% in the 3rd quarter. Vanguard Group Inc. now owns 14,167,845 shares of the company's stock worth $1,048,279,000 after buying an additional 283,981 shares during the period. State Street Corp raised its position in shares of Nextpower by 0.6% in the 3rd quarter. State Street Corp now owns 5,391,696 shares of the company's stock worth $398,932,000 after buying an additional 31,689 shares during the period. Geode Capital Management LLC raised its position in shares of Nextpower by 6.3% in the 4th quarter. Geode Capital Management LLC now owns 4,021,741 shares of the company's stock worth $350,385,000 after buying an additional 236,593 shares during the period. Invesco Ltd. raised its position in shares of Nextpower by 5.1% in the 4th quarter. Invesco Ltd. now owns 2,864,660 shares of the company's stock worth $249,541,000 after buying an additional 139,211 shares during the period. Finally, Price T Rowe Associates Inc. MD raised its position in shares of Nextpower by 4.8% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 2,429,410 shares of the company's stock worth $211,627,000 after buying an additional 111,782 shares during the period. 67.41% of the stock is owned by hedge funds and other 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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