Powell Industries (NASDAQ:POWL) Stock Price Expected to Rise, Cantor Fitzgerald Analyst Says

Key Points

• Cantor Fitzgerald raised its price target on Powell Industries from $160 to $320 while keeping a neutral rating, implying the stock may be roughly in line with current levels.
• Powell Industries’ stock was trading near its 52-week high at $322.76, with a market cap of $11.76 billion; the shares have surged well above both the 50-day and 200-day moving averages.
• The company recently reported mixed quarterly results, with EPS of $1.25 missing estimates and revenue slightly below expectations, while insiders sold shares and institutional ownership remained high at 89.77%.

Powell Industries (NASDAQ:POWL - Get Free Report) had its price target upped by analysts at Cantor Fitzgerald from $160.00 to $320.00 in a research note issued to investors on Monday,Benzinga reports. The brokerage currently has a "neutral" rating on the industrial products company's stock. Cantor Fitzgerald's price target would suggest a potential downside of 0.85% from the company's current price.

A number of other equities research analysts have also commented on POWL. Wall Street Zen lowered Powell Industries from a "buy" rating to a "hold" rating in a research report on Saturday, March 7th. Weiss Ratings upgraded shares of Powell Industries from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday. Glj Research began coverage on shares of Powell Industries in a report on Thursday, March 5th. They issued a "hold" rating and a $150.00 price objective on the stock. JPMorgan Chase & Co. increased their price objective on shares of Powell Industries from $310.00 to $360.00 and gave the stock an "overweight" rating in a research note on Wednesday, May 6th. Finally, Texas Capital raised shares of Powell Industries to a "strong-buy" rating in a report on Friday, March 27th. Two analysts have rated the stock with a Strong Buy rating, three have given a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Buy" and an average target price of $236.67.

Powell Industries Stock Performance

POWL stock traded up $13.37 during midday trading on Monday, reaching $322.76. The stock had a trading volume of 22,818 shares, compared to its average volume of 771,281. The firm has a fifty day simple moving average of $206.99 and a two-hundred day simple moving average of $157.95. Powell Industries has a 52-week low of $54.75 and a 52-week high of $325.93. The stock has a market cap of $11.76 billion, a PE ratio of 63.35, a P/E/G ratio of 4.01 and a beta of 1.14.

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

Insider Buying and Selling

In other news, EVP Michael William Metcalf sold 9,000 shares of the firm's stock in a transaction that occurred on Tuesday, March 31st. The shares were sold at an average price of $176.00, for a total transaction of $1,584,000.00. Following the sale, the executive vice president owned 83,400 shares of the company's stock, valued at $14,678,400. This trade represents a 9.74% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through 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 Powell Industries stock in a transaction that occurred on Thursday, April 9th. The shares were sold at an average price of $233.96, for a total transaction of $1,038,782.40. Following 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 ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 248,688 shares of company stock worth $44,535,053. 2.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of POWL. Kovitz Investment Group Partners LLC grew its position in shares of Powell Industries by 42.2% during the 3rd quarter. Kovitz Investment Group Partners LLC now owns 2,314,474 shares of the industrial products company's stock valued at $705,475,000 after acquiring an additional 686,588 shares during the period. Northwestern Mutual Wealth Management Co. boosted its position in Powell Industries by 1,230,312.7% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 775,160 shares of the industrial products company's stock worth $247,106,000 after purchasing an additional 775,097 shares in the last quarter. Vanguard Group Inc. grew its holdings in Powell Industries by 0.9% in the fourth quarter. Vanguard Group Inc. now owns 706,642 shares of the industrial products company's stock valued at $225,263,000 after purchasing an additional 6,419 shares during the period. First Trust Advisors LP increased its position in shares of Powell Industries by 65.8% in the third quarter. First Trust Advisors LP now owns 615,067 shares of the industrial products company's stock valued at $187,479,000 after buying an additional 244,051 shares in the last quarter. Finally, State Street Corp increased its position in shares of Powell Industries by 0.9% in the second quarter. State Street Corp now owns 352,103 shares of the industrial products company's stock valued at $74,100,000 after buying an additional 3,159 shares in the last quarter. Institutional investors and hedge funds 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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