Powell Industries (NASDAQ:POWL) Trading Up 8.7% - Here's What Happened

Key Points

• Powell Industries' stock price surged by 8.7% during trading on Monday, reaching as high as $265.81, with approximately 358,706 shares traded, a decrease from the average daily volume.
• The company reported a quarterly EPS of $3.96, exceeding estimates, but experienced a 0.7% decline in revenue compared to the same quarter last year.
• Powell Industries declared a quarterly dividend of $0.2675 per share, translating to a 0.4% dividend yield while maintaining a low payout ratio of 7.43%.

Shares of Powell Industries, Inc. (NASDAQ:POWL - Get Free Report) were up 8.7% during trading on Monday . The stock traded as high as $265.81 and last traded at $265.00. Approximately 358,706 shares changed hands during trading, a decline of 6% from the average daily volume of 382,992 shares. The stock had previously closed at $243.85.

Powell Industries Stock Performance

The stock has a market cap of $3.20 billion, a PE ratio of 18.39, a price-to-earnings-growth ratio of 1.21 and a beta of 0.81. The company's 50-day moving average price is $209.68 and its 200 day moving average price is $194.72.

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

Powell Industries Dividend Announcement

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

Insider Buying and Selling

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 sale, the chief executive officer owned 147,471 shares of the company's stock, valued at $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 Securities & Exchange Commission, which is available through this link. Also, EVP Michael William Metcalf sold 3,921 shares of the business'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 completion of the sale, the executive vice president directly owned 28,900 shares in the company, valued at approximately $6,084,895. The trade was a 11.95% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 17,308 shares of company stock worth $3,574,755. 2.20% of the stock is owned by corporate insiders.

Institutional Trading of Powell Industries

A number of institutional investors and hedge funds have recently added to or reduced their stakes in POWL. Versant Capital Management Inc purchased a new stake in shares of Powell Industries during the first quarter worth $25,000. Brooklyn Investment Group increased its position in shares of Powell Industries by 168.8% during the first quarter. Brooklyn Investment Group now owns 172 shares of the industrial products company's stock worth $29,000 after acquiring an additional 108 shares during the period. Harbour Investments Inc. increased its position in shares of Powell Industries by 1,970.0% during the first quarter. Harbour Investments Inc. now owns 207 shares of the industrial products company's stock worth $35,000 after acquiring an additional 197 shares during the period. GeoWealth Management LLC grew its stake in shares of Powell Industries by 123.8% during the fourth quarter. GeoWealth Management LLC now owns 179 shares of the industrial products company's stock worth $40,000 after purchasing an additional 99 shares in the last quarter. Finally, Morgan Dempsey Capital Management LLC acquired a new position in shares of Powell Industries during the second quarter worth $52,000. Hedge funds and other 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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