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

Key Points

• Babcock shares fell 7.2%, opening at $5.60 after previously closing at $5.91, while trading volume reached nearly 474,000 shares.
• Analyst sentiment is mixed: the stock has an overall “Hold” rating and an average price target of $15.40, including Needham’s $20.00 “Buy” target.
• The company exceeded quarterly expectations with $0.04 EPS versus $0.02 expected and $319.72 million in revenue, though it reported a negative net margin and carries a high 4.21 debt-to-equity ratio.

Babcock (NYSE:BW - Get Free Report) gapped down before the market opened on Wednesday. The stock had previously closed at $5.91, but opened at $5.60. Babcock shares last traded at $5.6150, with a volume of 473,995 shares traded.

Analyst Upgrades and Downgrades

BW has been the subject of several analyst reports. Wall Street Zen downgraded Babcock from a "buy" rating to a "hold" rating in a report on Sunday, August 23rd. Weiss Ratings upgraded Babcock from a "sell (d-)" rating to a "sell (d+)" rating in a report on Tuesday, August 11th. Finally, Needham & Company LLC assumed coverage on Babcock in a research report on Monday, August 31st. They issued a "buy" rating and a $20.00 price objective for the company. Four analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $15.40.

Babcock Trading Down 7.2%

The company has a quick ratio of 1.33, a current ratio of 1.45 and a debt-to-equity ratio of 4.21. The business's fifty day moving average is $7.75 and its 200-day moving average is $12.76. The stock has a market capitalization of $817.05 million, a PE ratio of -30.42 and a beta of 1.17.

Babcock (NYSE:BW - Get Free Report) last posted its quarterly earnings results on Monday, August 10th. The technology company reported $0.04 earnings per share for the quarter, topping analysts' consensus estimates of $0.02 by $0.02. Babcock had a negative net margin of 2.17% and a negative return on equity of 4.51%. The company had revenue of $319.72 million for the quarter, compared to the consensus estimate of $196.95 million. As a group, analysts anticipate that Babcock will post 0.27 EPS for the current fiscal year.

Insider Transactions at Babcock

In other news, Director Philip Moeller purchased 5,000 shares of the stock in a transaction on Thursday, August 13th. The stock was purchased at an average price of $9.50 per share, with a total value of $47,500.00. Following the completion of the transaction, the director 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 2.80% of the company's stock.

Institutional Trading of Babcock

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Arrowstreet Capital Limited Partnership increased its position in shares of Babcock by 777.3% in the first quarter. Arrowstreet Capital Limited Partnership now owns 2,974,324 shares of the technology company's stock worth $43,693,000 after acquiring an additional 2,635,304 shares in the last quarter. Situational Awareness LP raised its stake in shares of Babcock by 49.7% in the 2nd quarter. Situational Awareness LP now owns 2,027,451 shares of the technology company's stock valued at $28,587,000 after acquiring an additional 673,551 shares during the period. Wellington Management Group LLP acquired a new position in shares of Babcock during the 2nd quarter valued at $18,260,000. Bank of America Corp DE lifted its holdings in shares of Babcock by 1,743.7% during the 1st quarter. Bank of America Corp DE now owns 1,096,502 shares of the technology company's stock valued at $16,108,000 after acquiring an additional 1,037,028 shares in the last quarter. Finally, Cooper Creek Partners Management LLC purchased a new stake in Babcock during the 1st quarter worth $15,205,000. 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 products and services for power generation, industrial processing and emissions control. Its portfolio includes boilers, steam-generation equipment, thermal technologies, and systems designed to reduce air pollutants and improve energy efficiency.

The company also develops technologies for waste-to-energy, renewable energy, hydrogen production and carbon management. Its solutions are used by utilities, industrial operators, municipal organizations and other customers seeking to generate energy from conventional or alternative fuels while managing environmental impacts.

Babcock & Wilcox traces its roots to the Babcock & Wilcox Company, founded in the 19th century.

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