Powell Industries (NASDAQ:POWL) Hits New 12-Month High After Analyst Upgrade

Key Points

• Powell Industries hit a new 52-week high after Cantor Fitzgerald doubled its price target from $160 to $320, even while maintaining a neutral rating. The stock traded as high as $326.59.
• Several analysts have turned more positive on the name, including JPMorgan raising its target to $360 with an overweight rating and Texas Capital upgrading it to strong-buy. MarketBeat says the consensus rating remains Buy with an average target of $236.67.
• The company recently reported quarterly earnings of $1.25 per share, missing estimates, while revenue came in slightly below expectations but still rose 6.5% year over year. Powell also announced a small quarterly dividend of $0.09 per share, yielding about 0.1%.

Powell Industries, Inc. (NASDAQ:POWL - Get Free Report)'s stock price reached a new 52-week high on Monday after Cantor Fitzgerald raised their price target on the stock from $160.00 to $320.00. Cantor Fitzgerald currently has a neutral rating on the stock. Powell Industries traded as high as $326.59 and last traded at $326.51, with a volume of 252342 shares trading hands. The stock had previously closed at $309.39.

Several other research firms also recently issued reports on POWL. Weiss Ratings upgraded Powell Industries from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday. JPMorgan Chase & Co. upped their price target on Powell Industries from $310.00 to $360.00 and gave the stock an "overweight" rating in a research note on Wednesday, May 6th. Texas Capital upgraded Powell Industries to a "strong-buy" rating in a research note on Friday, March 27th. Wall Street Zen cut Powell Industries from a "buy" rating to a "hold" rating in a research report on Saturday, March 7th. Finally, Zacks Research raised Powell Industries from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, April 7th. Two research analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the company has an average rating of "Buy" and a consensus target price of $236.67.

Insider Transactions at Powell Industries

In other Powell Industries news, EVP Michael William Metcalf sold 9,000 shares of the company's stock in a transaction that occurred on Tuesday, March 31st. The stock was sold at an average price of $176.00, for a total value of $1,584,000.00. Following the completion of the transaction, the executive vice president owned 83,400 shares of the company's stock, valued at $14,678,400. This represents a 9.74% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Brett Alan Cope sold 4,440 shares of the company's stock in a transaction that occurred on Thursday, April 9th. The shares were sold at an average price of $233.96, for a total value of $1,038,782.40. Following the completion of the transaction, the chief executive officer directly owned 164,851 shares of the company's stock, valued at approximately $38,568,539.96. This trade represents a 2.62% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 248,688 shares of company stock worth $44,535,053. Insiders own 2.20% of the company's stock.

Hedge Funds Weigh In On Powell Industries

Hedge funds have recently modified their holdings of the stock. Greenline Wealth Management LLC bought a new stake in Powell Industries during the 4th quarter worth approximately $29,000. Avanza Fonder AB bought a new stake in Powell Industries during the 4th quarter worth approximately $30,000. Hollencrest Capital Management bought a new stake in Powell Industries during the 1st quarter worth approximately $54,000. Steward Partners Investment Advisory LLC grew its position in Powell Industries by 126.0% during the 4th quarter. Steward Partners Investment Advisory LLC now owns 113 shares of the industrial products company's stock worth $36,000 after acquiring an additional 63 shares during the last quarter. Finally, First Horizon Corp bought a new stake in Powell Industries during the 4th quarter worth approximately $40,000. 89.77% of the stock is owned by institutional investors and hedge funds.

Powell Industries Stock Performance

The stock has a market capitalization of $11.88 billion, a P/E ratio of 63.85, a price-to-earnings-growth ratio of 4.01 and a beta of 1.14. The stock has a 50-day simple moving average of $206.99 and a 200 day simple moving average of $157.95.

Powell Industries (NASDAQ:POWL - Get Free Report) last announced its quarterly earnings data on Monday, May 4th. The industrial products company reported $1.25 EPS for the quarter, missing analysts' consensus estimates of $1.34 by ($0.09). The firm had revenue of $296.62 million during the quarter, compared to the consensus estimate of $298.12 million. Powell Industries had a net margin of 16.51% and a return on equity of 28.61%. The firm's quarterly revenue was up 6.5% on a year-over-year basis. During the same quarter in the previous year, the business posted $3.81 earnings per share. Equities analysts predict that Powell Industries, Inc. will post 5.51 earnings per share for the current year.

Powell Industries Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, June 17th. Stockholders of record on Wednesday, May 20th will be given a $0.09 dividend. This represents a $0.36 annualized dividend and a dividend yield of 0.1%. The ex-dividend date is Wednesday, May 20th. Powell Industries's dividend payout ratio (DPR) is currently 7.05%.

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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