Powell Industries (NASDAQ:POWL) Sets New 52-Week High - Should You Buy?

Key Points

• Powell Industries shares hit a new 52-week high of $238.01, trading far above the MarketBeat consensus target of $142.33 despite mixed analyst ratings (two Strong Buy, two Buy, two Hold; consensus = Buy).
• The company posted an earnings beat with Q EPS of $1.13 versus $0.95 expected, a 16.82% net margin and 30.64% ROE, while revenue rose 4.1% year-over-year.
• Significant insider selling has occurred—248,688 shares (~$44.5M) sold in the last 90 days leaving insiders with 2.20% ownership—and the stock pays a modest 0.2% dividend ($0.09 quarterly).

Powell Industries, Inc. (NASDAQ:POWL - Get Free Report) shares reached a new 52-week high on Friday . The stock traded as high as $238.01 and last traded at $237.5510, with a volume of 1772 shares trading hands. The stock had previously closed at $232.81.

Wall Street Analyst Weigh In

Several analysts have commented on POWL shares. Cantor Fitzgerald boosted their price target on shares of Powell Industries from $142.33 to $160.33 and gave the stock a "neutral" rating in a research note on Thursday, February 5th. Glj Research assumed coverage on Powell Industries in a research report on Thursday, March 5th. They issued a "hold" rating and a $150.00 target price on the stock. Wall Street Zen lowered Powell Industries from a "buy" rating to a "hold" rating in a research note on Saturday, March 7th. Weiss Ratings restated a "buy (b-)" rating on shares of Powell Industries in a report on Monday, December 29th. Finally, Zacks Research upgraded Powell Industries from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, April 7th. Two investment analysts have rated the stock with a Strong Buy rating, two have given a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Buy" and a consensus target price of $142.33.

Powell Industries Price Performance

The firm has a market capitalization of $8.49 billion, a P/E ratio of 45.42, a P/E/G ratio of 2.99 and a beta of 0.81. The firm has a 50-day moving average price of $187.29 and a two-hundred day moving average price of $142.80.

Powell Industries (NASDAQ:POWL - Get Free Report) last posted its quarterly 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 company had revenue of $251.18 million for the quarter, compared to the consensus estimate of $255.34 million. Powell Industries had a net margin of 16.82% and a return on equity of 30.64%. The firm's revenue was up 4.1% compared to the same quarter last year. During the same quarter last year, the firm posted $0.95 EPS. Sell-side analysts predict that Powell Industries, Inc. will post 13.71 earnings per share for the current fiscal year.

Powell Industries Cuts Dividend

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

Insider Buying and Selling at Powell Industries

In other news, CEO Brett Alan Cope sold 4,440 shares of Powell Industries stock in a transaction on Thursday, April 9th. The stock was sold at an average price of $233.96, for a total value of $1,038,782.40. Following the transaction, the chief executive officer directly owned 164,851 shares in the company, valued at approximately $38,568,539.96. This trade represents a 2.62% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Michael William Metcalf sold 9,000 shares of the business's stock in a transaction 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 directly owned 83,400 shares of the company's stock, valued at approximately $14,678,400. The trade was a 9.74% 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. Insiders have sold a total of 248,688 shares of company stock valued at $44,535,053 in the last ninety days. Company insiders own 2.20% of the company's stock.

Institutional Trading of Powell Industries

Several hedge funds have recently modified their holdings of POWL. Greenline Wealth Management LLC bought a new position in shares of Powell Industries during the 4th quarter worth approximately $29,000. Avanza Fonder AB acquired a new position in shares of Powell Industries during the fourth quarter worth $30,000. State of Wyoming purchased a new stake in shares of Powell Industries during the 2nd quarter valued at $33,000. Steward Partners Investment Advisory LLC lifted its holdings in shares of 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 valued at $36,000 after purchasing an additional 63 shares during the last quarter. Finally, First Horizon Corp acquired a new stake in shares of Powell Industries in the 4th quarter worth $40,000. 89.77% of the stock is owned by hedge funds and other institutional investors.

About Powell Industries

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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