Powell Industries (NASDAQ:POWL) Stock Price Up 4.3% - Should You Buy?

Key Points

• Powell Industries' share price increased by 4.3% to $250.51, with significantly lower trading volume at 33,144 shares compared to the average of 385,042 shares.
• The company reported $3.81 earnings per share for the last quarter, exceeding the consensus estimate by $0.47, while revenue increased by 9.2% year-over-year.
• Powell Industries announced a quarterly dividend of $0.2675, yielding 0.43%, with a payout ratio of 7.52%.
• Institutional investors hold 89.77% of the company's stock, indicating strong interest from large investors in Powell Industries.

Powell Industries, Inc. (NASDAQ:POWL - Get Free Report) shares traded up 4.3% during trading on Friday . The company traded as high as $247.50 and last traded at $250.51. 33,144 shares were traded during mid-day trading, a decline of 91% from the average session volume of 385,042 shares. The stock had previously closed at $240.16.

Powell Industries Price Performance

The business has a 50-day simple moving average of $199.12 and a 200 day simple moving average of $196.72. The firm has a market cap of $2.85 billion, a PE ratio of 16.57, a PEG ratio of 1.25 and a beta of 0.77.

Powell Industries (NASDAQ:POWL - Get Free Report) last issued its quarterly earnings results on Tuesday, May 6th. The industrial products company reported $3.81 EPS for the quarter, topping analysts' consensus estimates of $3.34 by $0.47. The business had revenue of $278.63 million during the quarter, compared to analysts' expectations of $282.68 million. Powell Industries had a return on equity of 35.43% and a net margin of 16.00%. The business's quarterly revenue was up 9.2% on a year-over-year basis. During the same quarter in the prior year, the business posted $2.75 earnings per share. On average, equities analysts forecast that Powell Industries, Inc. will post 13.71 earnings per share for the current fiscal year.

Powell Industries Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, June 18th. Investors of record on Wednesday, May 21st were given a dividend of $0.2675 per share. This represents a $1.07 annualized dividend and a dividend yield of 0.45%. The ex-dividend date was Wednesday, May 21st. Powell Industries's dividend payout ratio is currently 7.52%.

Insider Activity

In related news, EVP Michael William Metcalf sold 3,921 shares of the stock in a transaction that occurred on Friday, June 27th. The stock was 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. This represents a 11.95% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Brett Alan Cope sold 6,775 shares of the stock in a transaction that occurred on Friday, June 27th. The shares were sold at an average price of $210.55, for a total value of $1,426,476.25. Following the transaction, the chief executive officer directly owned 147,471 shares of the company's stock, valued at approximately $31,050,019.05. The trade was a 4.39% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 17,308 shares of company stock valued at $3,574,755 in the last quarter. 2.20% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Powell Industries

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Versant Capital Management Inc bought a new position in Powell Industries during the first quarter valued at approximately $25,000. Brooklyn Investment Group lifted its stake in shares of Powell Industries by 168.8% in the 1st quarter. Brooklyn Investment Group now owns 172 shares of the industrial products company's stock valued at $29,000 after purchasing an additional 108 shares during the last quarter. GeoWealth Management LLC lifted its stake in shares of Powell Industries by 123.8% in the 4th 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 last quarter. Harbour Investments Inc. lifted its stake in shares of Powell Industries by 1,970.0% in the 1st quarter. Harbour Investments Inc. now owns 207 shares of the industrial products company's stock valued at $35,000 after purchasing an additional 197 shares during the last quarter. Finally, Meeder Asset Management Inc. bought a new stake in shares of Powell Industries in the 4th quarter valued at approximately $65,000. 89.77% of the stock is owned by institutional investors.

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.