Powell Industries (NASDAQ:POWL) Trading Down 6.3% - Should You Sell?

Key Points

• Shares of Powell Industries fell 6.3% on Wednesday, trading at $253.24 after having closed at $270.18, with trading volume down by 50% from the average.
• The company reported earnings of $3.96 per share, surpassing analyst expectations, but indicated a drop in quarterly revenue of 0.7% year-over-year.
• Powell Industries recently declared a quarterly dividend of $0.2675, with a payout ratio of 7.43% and an annual dividend yield of 0.4%.

Shares of Powell Industries, Inc. (NASDAQ:POWL - Get Free Report) fell 6.3% on Wednesday . The company traded as low as $252.19 and last traded at $253.24. 191,659 shares were traded during trading, a decline of 50% from the average session volume of 382,185 shares. The stock had previously closed at $270.18.

Powell Industries Trading Down 3.9%

The firm has a market cap of $3.13 billion, a PE ratio of 18.04, a price-to-earnings-growth ratio of 1.31 and a beta of 0.81. The stock has a fifty day simple moving average of $213.45 and a two-hundred day simple moving average of $195.06.

Powell Industries (NASDAQ:POWL - Get Free Report) last posted its earnings results on Tuesday, August 5th. The industrial products company reported $3.96 earnings per share for the quarter, beating analysts' consensus estimates of $3.73 by $0.23. Powell Industries had a return on equity of 33.16% and a net margin of 16.22%. The business had revenue of $286.27 million during the quarter, compared to analyst estimates of $301.69 million. During the same quarter in the previous year, the firm earned $3.79 EPS. The company's quarterly revenue was down .7% compared to the same quarter last year. As a group, sell-side analysts predict that Powell Industries, Inc. will post 13.71 earnings per share for the current fiscal year.

Powell Industries Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 17th. Shareholders of record on Wednesday, August 20th will be given a $0.2675 dividend. The ex-dividend date is Wednesday, August 20th. This represents a $1.07 annualized dividend and a yield of 0.4%. Powell Industries's payout ratio is presently 7.43%.

Insider Activity at Powell Industries

In other Powell Industries news, CEO Brett Alan Cope sold 6,775 shares of the business's stock in a transaction that occurred on Friday, June 27th. The stock was sold at an average price of $210.55, for a total value of $1,426,476.25. Following the completion of the sale, the chief executive officer owned 147,471 shares in the company, valued at approximately $31,050,019.05. The trade was a 4.39% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Michael William Metcalf sold 3,921 shares of the company's 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 $825,566.55. Following the transaction, the executive vice president owned 28,900 shares of the company's stock, valued at approximately $6,084,895. This represents a 11.95% decrease in their position. The disclosure for this sale can be found here. Insiders sold 17,308 shares of company stock valued at $3,574,755 in the last quarter. Corporate insiders own 2.20% of the company's stock.

Hedge Funds Weigh In On Powell Industries

A number of institutional investors have recently added to or reduced their stakes in POWL. JPMorgan Chase & Co. raised its holdings in Powell Industries by 10.6% in the fourth quarter. JPMorgan Chase & Co. now owns 29,701 shares of the industrial products company's stock worth $6,583,000 after purchasing an additional 2,843 shares in the last quarter. Wells Fargo & Company MN raised its holdings in Powell Industries by 58.5% in the fourth quarter. Wells Fargo & Company MN now owns 44,830 shares of the industrial products company's stock worth $9,937,000 after purchasing an additional 16,544 shares in the last quarter. Envestnet Asset Management Inc. grew its stake in shares of Powell Industries by 4.7% in the fourth quarter. Envestnet Asset Management Inc. now owns 53,408 shares of the industrial products company's stock worth $11,838,000 after acquiring an additional 2,382 shares during the last quarter. Bank of Montreal Can grew its stake in shares of Powell Industries by 46.2% in the fourth quarter. Bank of Montreal Can now owns 1,988 shares of the industrial products company's stock worth $441,000 after acquiring an additional 628 shares during the last quarter. Finally, Invesco Ltd. grew its stake in shares of Powell Industries by 134.0% in the fourth quarter. Invesco Ltd. now owns 265,139 shares of the industrial products company's stock worth $58,768,000 after acquiring an additional 151,850 shares during the last quarter. 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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