Powell Industries (NASDAQ:POWL) Upgraded at Zacks Research

Key Points

• Zacks Research upgraded Powell Industries to a "strong-buy," and the stock jumped about 8.1% to open at $218.07, trading near its 12‑month high of $221.66.
• Powell beat quarterly EPS estimates ($1.13 vs. $0.95) while revenue slightly missed at $251.2M, with strong profitability metrics including a 16.82% net margin and 30.64% ROE.
• Insiders sold roughly 244,248 shares (~$43.5M) over the last quarter even as institutional ownership sits at a high 89.77%, with several large funds markedly increasing positions.

Powell Industries (NASDAQ:POWL - Get Free Report) was upgraded by analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued on Tuesday,Zacks.com reports.

POWL has been the subject of several other research reports. Texas Capital upgraded Powell Industries to a "strong-buy" rating in a report on Friday, March 27th. Wall Street Zen cut Powell Industries from a "buy" rating to a "hold" rating in a research note on Saturday, March 7th. Cantor Fitzgerald upped their target price on Powell Industries from $142.33 to $160.33 and gave the company a "neutral" rating in a report on Thursday, February 5th. Weiss Ratings reiterated a "buy (b-)" rating on shares of Powell Industries in a report on Monday, December 29th. Finally, Glj Research began coverage on shares of Powell Industries in a research report on Thursday, March 5th. They set a "hold" rating and a $150.00 price objective on the stock. Two research analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, Powell Industries has an average rating of "Buy" and a consensus price target of $142.33.

Powell Industries Trading Up 8.1%

POWL stock opened at $218.07 on Tuesday. The stock has a market capitalization of $2.65 billion, a price-to-earnings ratio of 14.17, a PEG ratio of 2.38 and a beta of 0.81. The firm's 50-day moving average price is $178.61 and its two-hundred day moving average price is $137.51. Powell Industries has a 12-month low of $51.49 and a 12-month high of $221.66.

Powell Industries (NASDAQ:POWL - Get Free Report) last posted its earnings results on Tuesday, February 3rd. The industrial products company reported $1.13 earnings per share for the quarter, topping analysts' consensus estimates of $0.95 by $0.18. Powell Industries had a net margin of 16.82% and a return on equity of 30.64%. The company had revenue of $251.18 million during the quarter, compared to analyst estimates of $255.34 million. During the same period in the prior year, the business posted $0.95 earnings per share. Powell Industries's revenue for the quarter was up 4.1% on a year-over-year basis. Equities analysts predict that Powell Industries will post 13.71 EPS for the current year.

Insider Buying and Selling

In related news, insider Ping Ni sold 210 shares of the company's stock in a transaction on Wednesday, February 11th. The stock was sold at an average price of $196.67, for a total value of $41,300.00. Following the sale, the insider directly owned 6,069 shares of the company's stock, valued at $1,193,570. This represents a 3.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Michael William Metcalf sold 9,000 shares of the stock in a transaction on Tuesday, March 31st. The stock was sold at an average price of $176.00, for a total value of $1,584,000.00. Following the completion of the transaction, the executive vice president owned 83,400 shares of the company's stock, valued at approximately $14,678,400. This trade represents a 9.74% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 244,248 shares of company stock worth $43,496,270 over the last quarter. Company insiders own 2.20% of the company's stock.

Institutional Trading of Powell Industries

Hedge funds and other institutional investors have recently modified their holdings of the business. Northwestern Mutual Wealth Management Co. lifted its position in Powell Industries by 1,230,312.7% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 775,160 shares of the industrial products company's stock valued at $247,106,000 after acquiring an additional 775,097 shares during the period. Kovitz Investment Group Partners LLC grew its holdings in Powell Industries by 42.2% in the third quarter. Kovitz Investment Group Partners LLC now owns 2,314,474 shares of the industrial products company's stock worth $705,475,000 after purchasing an additional 686,588 shares during the period. First Trust Advisors LP increased its stake in shares of Powell Industries by 65.8% during 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 purchasing an additional 244,051 shares in the last quarter. Summit Partners Public Asset Management LLC bought a new position in shares of Powell Industries during the third quarter valued at approximately $43,515,000. Finally, Rock Creek Group LP lifted its holdings in shares of Powell Industries by 1,900.0% during the fourth quarter. Rock Creek Group LP now owns 150,000 shares of the industrial products company's stock valued at $47,817,000 after purchasing an additional 142,500 shares during the last quarter. 89.77% of the stock is owned by hedge funds and other institutional investors.

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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