Powell Industries (NASDAQ:POWL) Downgraded to Hold Rating by Wall Street Zen

Key Points

• Powell Industries was downgraded by Wall Street Zen from a "buy" to a "hold"; overall analyst sentiment is mixed (two buys, two holds) with an average target price of $427 while the stock trades near $484.
• The company posted an EPS beat (reported $3.40 vs. $2.85 expected) and strong profitability (ROE 30.64%, net margin 16.82%), though revenue slightly missed estimates and grew 4.1% year‑over‑year.
• Insiders have been net sellers recently, disposing of 30,158 shares valued at about $17.2 million in the last 90 days, including a 14,911‑share sale by major shareholder Thomas W. Powell.

Powell Industries (NASDAQ:POWL - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Saturday.

Other analysts have also recently issued reports about the stock. Roth Mkm reissued a "buy" rating and set a $350.00 price objective on shares of Powell Industries in a research note on Wednesday, November 19th. Cantor Fitzgerald boosted their price target on Powell Industries from $427.00 to $481.00 and gave the company a "neutral" rating in a research report on Thursday, February 5th. Glj Research assumed coverage on Powell Industries in a research note on Thursday. They set a "hold" rating and a $450.00 price target for the company. Finally, Weiss Ratings restated a "buy (b-)" rating on shares of Powell Industries in a report on Monday, December 29th. Two analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Powell Industries presently has an average rating of "Moderate Buy" and an average target price of $427.00.

Powell Industries Stock Performance

Shares of POWL opened at $483.65 on Friday. Powell Industries has a 1 year low of $152.40 and a 1 year high of $612.50. The company's 50 day simple moving average is $465.25 and its 200 day simple moving average is $369.12. The company has a market capitalization of $5.87 billion, a price-to-earnings ratio of 31.43, a PEG ratio of 2.29 and a beta of 0.82.

Powell Industries (NASDAQ:POWL - Get Free Report) last issued its quarterly earnings results on Tuesday, February 3rd. The industrial products company reported $3.40 earnings per share for the quarter, beating the consensus estimate of $2.85 by $0.55. Powell Industries had a return on equity of 30.64% and a net margin of 16.82%.The company had revenue of $251.18 million during the quarter, compared to the consensus estimate of $255.34 million. During the same period in the previous year, the firm posted $2.86 EPS. Powell Industries's revenue was up 4.1% on a year-over-year basis. Equities analysts expect that Powell Industries will post 13.71 EPS for the current fiscal year.

Insider Activity at Powell Industries

In related news, VP William Marshall Mauney, Jr. sold 3,000 shares of Powell Industries stock in a transaction dated Friday, December 19th. The stock was sold at an average price of $331.73, for a total value of $995,190.00. Following the completion of the transaction, the vice president directly owned 4,451 shares in the company, valued at approximately $1,476,530.23. This trade represents a 40.26% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, major shareholder Thomas W. Powell sold 14,911 shares of the stock in a transaction that occurred on Thursday, February 12th. The stock was sold at an average price of $600.92, for a total value of $8,960,318.12. Following the transaction, the insider directly owned 652,069 shares in the company, valued at approximately $391,841,303.48. This represents a 2.24% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 30,158 shares of company stock valued at $17,160,352 in the last 90 days. 2.20% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Powell Industries

Several hedge funds and other institutional investors have recently modified their holdings of POWL. Pacer Advisors Inc. acquired a new position in Powell Industries during the 4th quarter worth $468,000. Corient Private Wealth LLC bought a new stake in shares of Powell Industries during the fourth quarter valued at about $230,000. Vision One Management Partners LP lifted its holdings in Powell Industries by 160.5% in the fourth quarter. Vision One Management Partners LP now owns 61,448 shares of the industrial products company's stock worth $19,588,000 after purchasing an additional 37,857 shares during the period. Galaxy Group Investments LLC acquired a new stake in Powell Industries in the fourth quarter worth about $1,532,000. Finally, NewEdge Advisors LLC grew its position in Powell Industries by 52.6% in the 4th quarter. NewEdge Advisors LLC now owns 9,120 shares of the industrial products company's stock valued at $2,907,000 after buying an additional 3,145 shares in the last quarter. Institutional investors and hedge funds own 89.77% of the company's stock.

Powell Industries Company Profile

Powell Industries, Inc is an industrial electrical engineering company specializing in the design, manufacture and integration of customized power control and distribution solutions. The firm's offerings range from medium‐voltage switchgear and power control centers to bus duct, motor control centers and specialty transformers. Powell also provides automation systems, protective relaying, metering, supervisory control and data acquisition (SCADA) platforms, and turnkey engineering services to help clients manage critical power infrastructure.

Serving the oil and gas, petrochemical, refining, utility, mining and industrial sectors, Powell's products are engineered to meet demanding performance, safety and reliability requirements.

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