Powell Industries (NASDAQ:POWL) Reaches New 52-Week High - Here's Why

Key Points

• 52-week high: Powell's shares jumped about 6%, trading as high as $212 and last around $219 during mid-day trading (previous close $201.70), marking a new 52-week high.
• Mixed analyst view: Brokerages range from Strong Buy to Hold, producing a MarketBeat consensus of Moderate Buy with a consensus price target of $142.33, well below the current share price.
• Solid quarter but low yield: Powell beat EPS estimates ($1.13 vs. $0.95), posted a 30.64% ROE and 16.82% net margin, has a $2.59B market cap and P/E of 14.04, while yielding just 0.2% and showing recent insider selling.

Shares of Powell Industries, Inc. (NASDAQ:POWL - Get Free Report) reached a new 52-week high during mid-day trading on Wednesday . The company traded as high as $212.00 and last traded at $218.9510, with a volume of 12159 shares. The stock had previously closed at $201.70.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on POWL. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Powell Industries in a research note on Monday, December 29th. Wall Street Zen downgraded shares of Powell Industries from a "buy" rating to a "hold" rating in a research note on Saturday, March 7th. Cantor Fitzgerald raised their target price on shares of Powell Industries from $142.33 to $160.33 and gave the company a "neutral" rating in a research note on Thursday, February 5th. Glj Research assumed coverage on Powell Industries in a report on Thursday, March 5th. They issued a "hold" rating and a $150.00 target price on the stock. Finally, Texas Capital raised Powell Industries to a "strong-buy" rating in a report on Friday, March 27th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $142.33.

Powell Industries Stock Up 6.0%

The company has a fifty day simple moving average of $177.20 and a 200 day simple moving average of $136.94. The firm has a market capitalization of $2.59 billion, a P/E ratio of 14.04, a P/E/G ratio of 2.38 and a beta of 0.81.

Powell Industries (NASDAQ:POWL - Get Free Report) last released its earnings results on Tuesday, February 3rd. The industrial products company reported $1.13 EPS for the quarter, topping the consensus estimate of $0.95 by $0.18. The business had revenue of $251.18 million for the quarter, compared to the consensus estimate of $255.34 million. Powell Industries had a return on equity of 30.64% and a net margin of 16.82%.The company's revenue for the quarter was up 4.1% compared to the same quarter last year. During the same period in the previous year, the company posted $0.95 earnings per share. As a group, equities analysts expect that Powell Industries, Inc. will post 13.71 earnings per share for the current fiscal year.

Powell Industries Cuts Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, March 18th. Investors of record on Wednesday, February 18th were given a dividend of $0.09 per share. The ex-dividend date of this dividend was Wednesday, February 18th. This represents a $0.36 annualized dividend and a dividend yield of 0.2%. Powell Industries's dividend payout ratio (DPR) is 7.02%.

Insider Activity at Powell Industries

In related news, insider Ping Ni sold 210 shares of the firm's stock in a transaction that occurred on Wednesday, February 11th. The shares were sold at an average price of $196.67, for a total transaction of $41,300.00. Following the completion of the sale, the insider owned 6,069 shares of the company's stock, valued at $1,193,570. This trade represents a 3.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Treasurer David L. Eckenrode sold 885 shares of the firm's stock in a transaction that occurred on Tuesday, February 10th. The shares were sold at an average price of $190.00, for a total transaction of $168,150.00. Following the sale, the treasurer directly owned 1,329 shares of the company's stock, valued at $252,510. This trade represents a 39.97% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 244,248 shares of company stock valued at $43,496,270 over the last ninety days. Corporate insiders own 2.20% of the company's stock.

Institutional Investors Weigh In On Powell Industries

Several institutional investors and hedge funds have recently made changes to their positions in POWL. Greenline Wealth Management LLC bought a new stake in shares of Powell Industries during the fourth quarter valued at approximately $29,000. Avanza Fonder AB bought a new stake in shares of Powell Industries during the fourth quarter valued at approximately $30,000. State of Wyoming bought a new stake in Powell Industries in the 2nd quarter worth approximately $33,000. Steward Partners Investment Advisory LLC grew its position in Powell Industries by 126.0% in the 4th quarter. Steward Partners Investment Advisory LLC now owns 113 shares of the industrial products company's stock worth $36,000 after purchasing an additional 63 shares during the period. Finally, First Horizon Corp bought a new stake in Powell Industries in the 4th quarter worth approximately $40,000. Institutional investors 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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