Nextpower (NASDAQ:NXT) Trading Down 7.1% - Time to Sell?

Key Points

• Nextpower shares fell 7.1% on Wednesday, trading as low as $110.79 and closing near $110.76, with volume well below average.
• Despite the pullback, analysts remain broadly bullish: 20 analysts rate the stock Buy, 5 Hold, and the consensus price target is $147.77, above the current price.
• The company recently beat quarterly earnings and revenue estimates, reporting EPS of $1.05 versus $0.89 expected and revenue of $880.52 million, while insiders also made notable stock sales in recent weeks.

Shares of Nextpower Inc. (NASDAQ:NXT - Get Free Report) fell 7.1% on Wednesday . The company traded as low as $110.79 and last traded at $110.7640. 1,079,979 shares were traded during trading, a decline of 48% from the average session volume of 2,085,185 shares. The stock had previously closed at $119.27.

Analysts Set New Price Targets

A number of analysts recently weighed in on NXT shares. Glj Research boosted their target price on Nextpower from $147.00 to $149.44 and gave the stock a "buy" rating in a research report on Wednesday, June 3rd. Loop Capital set a $135.00 price target on Nextpower in a research note on Wednesday, May 13th. BMO Capital Markets raised their price objective on Nextpower from $113.00 to $125.00 and gave the stock a "market perform" rating in a report on Wednesday, May 13th. Citigroup raised their price objective on Nextpower from $114.00 to $145.00 and gave the stock a "buy" rating in a report on Wednesday, May 13th. Finally, Royal Bank Of Canada raised their price objective on Nextpower from $146.00 to $149.00 and gave the stock an "outperform" rating in a report on Friday, May 29th. Twenty equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $147.77.

Nextpower Stock Performance

The stock has a fifty day moving average price of $124.40 and a 200-day moving average price of $110.68. The firm has a market capitalization of $16.99 billion, a PE ratio of 29.52, a P/E/G ratio of 2.98 and a beta of 1.73.

Nextpower (NASDAQ:NXT - Get Free Report) last announced its quarterly earnings results on Tuesday, May 12th. The company reported $1.05 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.89 by $0.16. Nextpower had a return on equity of 28.18% and a net margin of 16.46%.The business had revenue of $880.52 million for the quarter, compared to the consensus estimate of $826.26 million. Nextpower has set its FY 2027 guidance at 4.210-4.590 EPS. Research analysts expect that Nextpower Inc. will post 3.69 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO Daniel S. Shugar sold 26,077 shares of the stock in a transaction that occurred on 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 transaction, the chief executive officer directly owned 931,419 shares in the company, valued at approximately $125,480,767.68. This represents a 2.72% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. 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. Also, President Howard Wenger sold 62,670 shares of the stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $130.25, for a total value of $8,162,767.50. Following the completion of the transaction, the president owned 426,467 shares of the company's stock, valued at $55,547,326.75. The trade was a 12.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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 in the last ninety days. Company insiders own 0.56% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Smartleaf Asset Management LLC boosted its position in shares of Nextpower by 107.6% during the fourth quarter. Smartleaf Asset Management LLC now owns 299 shares of the company's stock worth $26,000 after buying an additional 155 shares during the period. Whittier Trust Co. of Nevada Inc. raised its stake in shares of Nextpower by 268.7% in the fourth quarter. Whittier Trust Co. of Nevada Inc. now owns 306 shares of the company's stock valued at $28,000 after acquiring an additional 223 shares in the last quarter. Signature Equity Partners LLC raised its stake in shares of Nextpower by 76.4% in the first quarter. Signature Equity Partners LLC now owns 261 shares of the company's stock valued at $31,000 after acquiring an additional 113 shares in the last quarter. Huntington National Bank raised its stake in shares of Nextpower by 480.3% in the fourth quarter. Huntington National Bank now owns 383 shares of the company's stock valued at $33,000 after acquiring an additional 317 shares in the last quarter. Finally, Foster Dykema Cabot & Partners LLC purchased a new position in shares of Nextpower during the third quarter worth about $36,000. 67.41% of the stock is currently 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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