Powell Industries (NASDAQ:POWL) Stock Price Down 7.1% on Insider Selling

Key Points

• Powell Industries shares fell 7.1% after multiple insider sales were disclosed, including stock sales by Director Richard E. Williams, CEO Brett Alan Cope, and VP William Marshall Mauney, Jr.
• The company’s latest earnings came in slightly below expectations, with EPS of $1.25 versus the $1.34 consensus and revenue of $296.62 million versus $298.12 million estimated.
• Analyst views are mixed: while some firms raised targets or ratings, Zacks downgraded the stock to hold, and MarketBeat’s consensus remains Moderate Buy with a price target of $236.67.

Shares of Powell Industries, Inc. (NASDAQ:POWL - Get Free Report) were down 7.1% during trading on Monday following insider selling activity. The company traded as low as $270.36 and last traded at $271.9250. Approximately 87,940 shares changed hands during trading, a decline of 89% from the average daily volume of 770,219 shares. The stock had previously closed at $292.65.

Specifically, Director Richard E. Williams sold 5,250 shares of the company's stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $299.19, for a total value of $1,570,747.50. Following the sale, the director directly owned 39,630 shares of the company's stock, valued at approximately $11,856,899.70. This represents a 11.70% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Brett Alan Cope sold 4,440 shares of the firm's stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $301.00, for a total transaction of $1,336,440.00. Following the completion of the transaction, the chief executive officer owned 490,113 shares of the company's stock, valued at $147,524,013. This trade represents a 0.90% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In related news, VP William Marshall Mauney, Jr. sold 2,500 shares of the company's stock in a transaction on Monday, May 11th. The stock was sold at an average price of $323.69, for a total transaction of $809,225.00. Following the completion of the sale, the vice president owned 10,853 shares in the company, valued at approximately $3,513,007.57. This represents a 18.72% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website.

Analyst Ratings Changes

Several research firms have recently weighed in on POWL. Zacks Research downgraded Powell Industries from a "strong-buy" rating to a "hold" rating in a research report on Monday, May 11th. Weiss Ratings upgraded Powell Industries from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, May 8th. Texas Capital raised Powell Industries to a "strong-buy" rating in a report on Friday, March 27th. JPMorgan Chase & Co. boosted their target price on Powell Industries from $310.00 to $360.00 and gave the company an "overweight" rating in a report on Wednesday, May 6th. Finally, Cantor Fitzgerald lifted their price objective on Powell Industries from $160.00 to $320.00 and gave the stock a "neutral" rating in a research report on Monday, May 11th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, Powell Industries presently has a consensus rating of "Moderate Buy" and a consensus price target of $236.67.

Powell Industries Stock Down 8.6%

The firm has a market capitalization of $9.74 billion, a price-to-earnings ratio of 52.71, a price-to-earnings-growth ratio of 3.82 and a beta of 1.14. The business's fifty day moving average is $222.53 and its 200 day moving average is $165.89.

Powell Industries (NASDAQ:POWL - Get Free Report) last released its earnings results on Monday, May 4th. The industrial products company reported $1.25 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.34 by ($0.09). The firm had revenue of $296.62 million during the quarter, compared to analyst estimates of $298.12 million. Powell Industries had a net margin of 16.51% and a return on equity of 28.61%. Powell Industries's quarterly revenue was up 6.5% on a year-over-year basis. During the same quarter in the previous year, the firm earned $3.81 EPS. Equities research analysts expect that Powell Industries, Inc. will post 5.47 EPS for the current year.

Powell Industries Cuts Dividend

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

Institutional Trading of Powell Industries

Several institutional investors have recently added to or reduced their stakes in the company. Greenline Wealth Management LLC acquired a new stake in shares of Powell Industries during the fourth quarter worth about $29,000. Avanza Fonder AB purchased a new position in Powell Industries during the 4th quarter worth approximately $30,000. State of Wyoming acquired a new stake in shares of Powell Industries during the second quarter worth $33,000. Steward Partners Investment Advisory LLC raised its holdings in Powell Industries by 126.0% during the fourth 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 last quarter. Finally, First Horizon Corp acquired a new stake in Powell Industries during the fourth quarter worth approximately $40,000. Institutional investors own 89.77% of the company's stock.

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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