Babcock (NYSE:BW) Shares Gap Down - What's Next?

Key Points

• Babcock shares fell sharply, opening at $7.33 versus the prior close of $7.94 and last trading near $7.21. The stock is down 10.8%, with its 50-day and 200-day moving averages at $9.15 and $13.38, respectively.
• Analyst sentiment is mixed: four analysts rate the stock a Buy, two a Hold, and one a Sell. The consensus rating is Hold, with an average price target of $15.40; Needham initiated coverage with a Buy rating and a $20 target.
• Babcock exceeded quarterly expectations, reporting $0.04 in EPS versus $0.02 expected and $319.72 million in revenue versus $196.95 million forecast. Director Philip Moeller bought 5,000 shares, while institutional investors own 83.17% of the company.

Babcock (NYSE:BW - Get Free Report) shares gapped down before the market opened on Monday . The stock had previously closed at $7.94, but opened at $7.33. Babcock shares last traded at $7.2060, with a volume of 739,882 shares.

Analyst Ratings Changes

Several research firms have recently weighed in on BW. Wall Street Zen lowered Babcock from a "buy" rating to a "hold" rating in a research note on Sunday, August 23rd. Needham & Company LLC started coverage on Babcock in a research report on Monday, August 31st. They set a "buy" rating and a $20.00 target price for the company. Finally, Weiss Ratings raised Babcock from a "sell (d-)" rating to a "sell (d+)" rating in a research note on Tuesday, August 11th. Four analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $15.40.

Babcock Stock Down 10.8%

The firm has a market cap of $1.06 billion, a price-to-earnings ratio of -39.03 and a beta of 1.19. The business's 50-day moving average is $9.15 and its 200-day moving average is $13.38. The company has a debt-to-equity ratio of 4.21, a quick ratio of 1.33 and a current ratio of 1.45.

Babcock (NYSE:BW - Get Free Report) last released its quarterly earnings results on Monday, August 10th. The technology company reported $0.04 EPS for the quarter, beating analysts' consensus estimates of $0.02 by $0.02. The firm had revenue of $319.72 million for the quarter, compared to analyst estimates of $196.95 million. Babcock had a negative net margin of 2.17% and a negative return on equity of 4.51%. On average, equities analysts predict that Babcock will post 0.27 EPS for the current year.

Insider Buying and Selling

In other Babcock news, Director Philip Moeller purchased 5,000 shares of the firm's stock in a transaction that occurred on Thursday, August 13th. The shares were acquired at an average cost of $9.50 per share, for a total transaction of $47,500.00. Following the transaction, the director directly owned 240,809 shares in the company, valued at approximately $2,287,685.50. The trade was a 2.12% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through this link. 2.80% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Babcock

A number of institutional investors and hedge funds have recently bought and sold shares of BW. Engineers Gate Manager LP grew its holdings in shares of Babcock by 116.1% during the second quarter. Engineers Gate Manager LP now owns 53,109 shares of the technology company's stock worth $749,000 after purchasing an additional 28,528 shares during the last quarter. Integrated Wealth Concepts LLC bought a new position in shares of Babcock in the second quarter valued at about $25,000. Arizona State Retirement System bought a new position in shares of Babcock in the second quarter valued at about $428,000. California State Teachers Retirement System acquired a new position in Babcock during the 2nd quarter worth about $25,159,000. Finally, Readystate Asset Management LP acquired a new position in Babcock during the 2nd quarter worth about $1,900,000. Institutional investors and hedge funds own 83.17% of the company's stock.

About Babcock

Babcock & Wilcox Enterprises, Inc NYSE: BW is an energy and environmental technology company that provides equipment, technologies and services for power generation and industrial applications. The company serves utilities, industrial operators and other customers seeking to generate energy, improve operating efficiency and reduce emissions.

Its offerings include steam generation systems, boilers, replacement parts, maintenance and engineering services, as well as technologies for controlling air pollution and managing solid waste.

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