Powell Industries (NASDAQ:POWL) Shares Gap Down - Should You Sell?

Key Points

• Powell Industries' shares gapped down from a previous closing price of $236.24 to an opening price of $207.00, reflecting a decline of about 4% before trading at $228.31.
• The company reported an earnings per share (EPS) of $3.96 for the last quarter, which exceeded the consensus estimate of $3.73, but their revenue of $286.27 million fell short of expectations of $301.69 million.
• Powell Industries has recently announced a quarterly dividend of $0.2675, representing an annualized dividend of $1.07 and a yield of 0.5%, with a payout ratio of 7.52%.

Shares of Powell Industries, Inc. (NASDAQ:POWL - Get Free Report) gapped down before the market opened on Wednesday . The stock had previously closed at $236.24, but opened at $207.00. Powell Industries shares last traded at $228.31, with a volume of 163,872 shares trading hands.

Powell Industries Stock Down 4.0%

The stock has a market capitalization of $2.74 billion, a PE ratio of 15.94, a PEG ratio of 1.16 and a beta of 0.81. The stock's 50 day moving average price is $205.83 and its 200-day moving average price is $196.47.

Powell Industries (NASDAQ:POWL - Get Free Report) last released its quarterly earnings data on Tuesday, August 5th. The industrial products company reported $3.96 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.73 by $0.23. The firm had revenue of $286.27 million for the quarter, compared to analysts' expectations of $301.69 million. Powell Industries had a net margin of 16.00% and a return on equity of 35.43%. The company's revenue for the quarter was down .7% compared to the same quarter last year. During the same quarter last year, the business posted $3.79 earnings per share. On average, analysts forecast that Powell Industries, Inc. will post 13.71 earnings per share for the current year.

Powell Industries Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 17th. Stockholders of record on Wednesday, August 20th will be paid a $0.2675 dividend. This represents a $1.07 annualized dividend and a dividend yield of 0.5%. Powell Industries's payout ratio is 7.52%.

Insider Buying and Selling at Powell Industries

In related news, EVP Michael William Metcalf sold 3,921 shares of Powell Industries stock in a transaction dated Friday, June 27th. The shares were sold at an average price of $210.55, for a total transaction of $825,566.55. Following the completion of the transaction, the executive vice president directly owned 28,900 shares of the company's stock, valued at approximately $6,084,895. The trade was a 11.95% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Brett Alan Cope sold 6,775 shares of the stock in a transaction dated Friday, June 27th. The stock was sold at an average price of $210.55, for a total transaction of $1,426,476.25. Following the completion of the sale, the chief executive officer directly owned 147,471 shares in the company, valued at $31,050,019.05. This trade represents a 4.39% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 17,308 shares of company stock worth $3,574,755 in the last 90 days. 2.20% of the stock is currently owned by insiders.

Institutional Trading of Powell Industries

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Versant Capital Management Inc bought a new position in shares of Powell Industries in the first quarter worth about $25,000. Brooklyn Investment Group increased its position in shares of Powell Industries by 168.8% during the first quarter. Brooklyn Investment Group now owns 172 shares of the industrial products company's stock worth $29,000 after acquiring an additional 108 shares during the period. Harbour Investments Inc. increased its position in shares of Powell Industries by 1,970.0% during the first quarter. Harbour Investments Inc. now owns 207 shares of the industrial products company's stock worth $35,000 after acquiring an additional 197 shares during the period. GeoWealth Management LLC boosted its holdings in shares of Powell Industries by 123.8% in the fourth quarter. GeoWealth Management LLC now owns 179 shares of the industrial products company's stock valued at $40,000 after purchasing an additional 99 shares during the period. Finally, Morgan Dempsey Capital Management LLC bought a new position in Powell Industries in the second quarter worth approximately $52,000. Hedge funds and other institutional investors own 89.77% of the company's stock.

About Powell Industries

Powell Industries, Inc, together with its subsidiaries, designs, develops, manufactures, sells, and services custom-engineered equipment and systems. The company's principal products include integrated power control room substations, custom-engineered modules, electrical houses, medium-voltage circuit breakers, monitoring and control communications systems, motor control centers, switches, and bus duct systems, as well as traditional and arc-resistant distribution switchgears and control gears.

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