Babcock (NYSE:BW) Stock Sees Unusually High Call Option Buying

Key Points

• Call-option trading surged: Investors bought 14,318 Babcock call options, 228% above the typical volume of 4,360.
• The stock rose 13.7%: Shares gained $0.61 to $5.09 during Wednesday’s trading, on volume above its average.
• Babcock’s reported quarterly EPS of $0.04 topped the $0.02 consensus estimate, and revenue of $319.72 million exceeded estimates. Analysts’ consensus rating was Hold, with a $15.75 average price target.

Babcock (NYSE:BW - Get Free Report) was the recipient of unusually large options trading on Wednesday. Stock traders acquired 14,318 call options on the company. This represents an increase of 228% compared to the typical volume of 4,360 call options.

Babcock Stock Up 13.7%

NYSE:BW traded up $0.61 during mid-day trading on Wednesday, reaching $5.09. The stock had a trading volume of 6,677,505 shares, compared to its average volume of 4,323,903. The stock has a market cap of $758.98 million, a P/E ratio of -11.08 and a beta of 1.24. The business's 50 day moving average is $5.60 and its 200 day moving average is $11.27. The company has a debt-to-equity ratio of 4.21, a current ratio of 1.45 and a quick ratio of 1.33. Babcock has a fifty-two week low of $3.07 and a fifty-two week high of $22.03.

Babcock (NYSE:BW - Get Free Report) last announced its quarterly earnings results on Monday, August 10th. The technology company reported $0.04 EPS for the quarter, topping the consensus estimate of $0.02 by $0.02. Babcock had a net margin of 4.11% and a negative return on equity of 15.21%. The company had revenue of $319.72 million for the quarter, compared to analyst estimates of $196.95 million. As a group, sell-side analysts predict that Babcock will post 0.27 earnings per share for the current year.

Wall Street Analyst Weigh In

Several analysts recently commented on BW shares. Weiss Ratings reissued a "sell (d+)" rating on shares of Babcock in a research note on Wednesday, November 4th. Wall Street Zen lowered shares of Babcock from a "buy" rating to a "hold" rating in a research report on Sunday, August 23rd. Finally, Needham & Company LLC dropped their price target on Babcock from $20.00 to $15.00 and set a "buy" rating on the stock in a report on Tuesday. Three equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $15.75.

Babcock News Roundup

Investors following BW have been watching these news items:

• Positive Sentiment: Management set a higher 2027 target: Babcock reiterated its 2026 adjusted EBITDA range of $80 million–$105 million and outlined a $125 million–$140 million target for 2027. Its $2.5 billion backlog and redemption of $61.8 million in bonds also provide supportive context, though reported earnings included a substantial warrant fair-value gain. 2027 EBITDA target and pipeline
• Neutral Sentiment: Northland’s forecasts show a mixed near-term picture: The firm cut its Q4 2026 EPS estimate to $0.09 from $0.15, while forecasting quarterly EPS to rise to $0.19 by Q4 2027. The estimates indicate reduced expectations for the coming quarter but improving earnings over the forecast period.
• Negative Sentiment: Litigation-related uncertainty remains: Pomerantz issued an investor notice concerning a class-action lawsuit and invited investors with losses to contact the firm. The notice may add uncertainty, but is not itself a finding of wrongdoing. Investor notice regarding class-action lawsuit

Insiders Place Their Bets

In other news, Director Philip Moeller purchased 5,000 shares of the firm's stock in a transaction on Thursday, August 13th. The stock was purchased at an average cost of $9.50 per share, with a total value of $47,500.00. Following the purchase, the director owned 240,809 shares in the company, valued at $2,287,685.50. This trade represents a 2.12% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 2.80% of the stock is owned by company insiders.

Hedge Funds Weigh In On Babcock

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Arrowstreet Capital Limited Partnership lifted its stake in shares of Babcock by 777.3% in the first quarter. Arrowstreet Capital Limited Partnership now owns 2,974,324 shares of the technology company's stock worth $43,693,000 after buying an additional 2,635,304 shares during the last quarter. Wellington Management Group LLP acquired a new position in Babcock in the 2nd quarter valued at $18,260,000. Bank of America Corp DE grew its stake in Babcock by 1,743.7% in the 1st quarter. Bank of America Corp DE now owns 1,096,502 shares of the technology company's stock valued at $16,108,000 after buying an additional 1,037,028 shares during the last quarter. Cooper Creek Partners Management LLC bought a new position in Babcock in the 1st quarter worth $15,205,000. Finally, Equitec Proprietary Markets LLC bought a new position in Babcock in the 2nd quarter worth $9,831,000. Institutional investors and hedge funds own 83.17% of the company's stock.

Babcock Company Profile

Babcock & Wilcox Enterprises, Inc. is an energy and environmental technology company serving power, industrial and municipal customers. Its offerings include steam-generation equipment, emissions-control systems and related engineering, construction, maintenance and aftermarket services. The company also develops technologies for renewable and waste-to-energy applications, including systems that use biomass and municipal solid waste to produce energy. Its environmental technologies help customers manage emissions and other byproducts from energy and industrial processes.

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