Powell Industries (NASDAQ:POWL) Trading Down 8% - Here's What Happened

Key Points

• Powell Industries shares fell 8% to about $213.66, with trading volume roughly 73% below the average session volume.
• The company reported quarterly EPS of $1.25, missing the $1.34 consensus estimate, while revenue of $296.62 million also came in slightly below expectations. Revenue nevertheless increased 6.5% year over year.
• Analysts maintain a consensus “Buy” rating with an average price target of $236.67, although recent recommendations have been mixed; company insiders sold roughly $16.1 million of stock over the last quarter.

Powell Industries, Inc. (NASDAQ:POWL - Get Free Report) was down 8% during trading on Monday . The company traded as low as $214.00 and last traded at $213.6640. Approximately 201,083 shares changed hands during trading, a decline of 73% from the average session volume of 757,947 shares. The stock had previously closed at $232.21.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on POWL. JPMorgan Chase & Co. upped their target price on Powell Industries from $310.00 to $360.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th. Cantor Fitzgerald lifted their price target on shares of Powell Industries from $160.00 to $320.00 and gave the company a "neutral" rating in a research report on Monday, May 11th. Glj Research raised shares of Powell Industries from a "hold" rating to a "strong-buy" rating in a report on Tuesday, July 14th. Weiss Ratings downgraded shares of Powell Industries from a "buy (b)" rating to a "buy (b-)" rating in a report on Thursday, July 16th. Finally, Zacks Research lowered shares of Powell Industries from a "strong-buy" rating to a "hold" rating in a research report on Monday, May 11th. Two equities research analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat, Powell Industries has an average rating of "Buy" and a consensus price target of $236.67.

Powell Industries Stock Down 7.4%

The firm has a 50-day moving average price of $270.49 and a two-hundred day moving average price of $221.16. The company has a market capitalization of $7.83 billion, a P/E ratio of 42.07, a PEG ratio of 3.03 and a beta of 1.13.

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

Powell Industries Cuts Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, June 17th. Investors of record on Wednesday, May 20th were paid a $0.09 dividend. This represents a $0.36 annualized dividend and a dividend yield of 0.2%. The ex-dividend date was Wednesday, May 20th. Powell Industries's dividend payout ratio (DPR) is presently 7.05%.

Insider Buying and Selling at Powell Industries

In related news, CEO Brett Alan Cope sold 4,440 shares of Powell Industries stock in a transaction dated Thursday, July 9th. The stock was sold at an average price of $241.55, for a total transaction of $1,072,482.00. Following the sale, the chief executive officer directly owned 517,233 shares of the company's stock, valued at $124,937,631.15. This trade represents a 0.85% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Richard E. Williams sold 5,250 shares of the company's stock in a transaction that occurred 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 completion of the transaction, the director directly owned 39,630 shares of the company's stock, valued at approximately $11,856,899.70. This trade represents a 11.70% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 55,088 shares of company stock valued at $16,070,066 over the last quarter. Company insiders own 2.20% of the company's stock.

Institutional Investors Weigh In On Powell Industries

Several institutional investors and hedge funds have recently bought and sold shares of POWL. Greenline Wealth Management LLC acquired a new stake in shares of Powell Industries during the 4th quarter valued at about $29,000. MassMutual Private Wealth & Trust FSB raised its position in Powell Industries by 183.8% in the second quarter. MassMutual Private Wealth & Trust FSB now owns 105 shares of the industrial products company's stock worth $30,000 after purchasing an additional 68 shares in the last quarter. State of Wyoming bought a new position in Powell Industries during the second quarter worth about $33,000. Steward Partners Investment Advisory LLC boosted 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 valued at $36,000 after purchasing an additional 63 shares in the last quarter. Finally, First Horizon Corp bought a new stake in shares of Powell Industries in the 4th quarter valued at 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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