Babcock (NYSE:BW) Shares Up 7.6% - Here's Why

Key Points

• Babcock shares rose 7.6% to about $7.64, despite trading well below their 50-day and 200-day moving averages.
• Analyst sentiment is mixed: the stock has an average rating of “Hold” and a $15.40 target price, with four Buy, two Hold, and one Sell rating.
• Babcock exceeded quarterly expectations, reporting $0.04 in EPS versus $0.02 expected and revenue of $319.69 million versus a $196.95 million consensus estimate; institutional investors own 83.17% of the stock.

Shares of Babcock (NYSE:BW - Get Free Report) shot up 7.6% during trading on Tuesday . The stock traded as high as $7.62 and last traded at $7.64. Approximately 637,883 shares traded hands during mid-day trading, a decline of 84% from the average session volume of 4,085,504 shares. The stock had previously closed at $7.10.

Analyst Ratings Changes

Several equities analysts recently commented on the company. Weiss Ratings upgraded Babcock from a "sell (d-)" rating to a "sell (d+)" rating in a research note on Tuesday, August 11th. Needham & Company LLC initiated coverage on Babcock in a research note on Monday, August 31st. They issued a "buy" rating and a $20.00 price target on the stock. Wall Street Zen cut Babcock from a "buy" rating to a "hold" rating in a report on Sunday, August 23rd. Finally, Northland Securities set a $23.00 price objective on shares of Babcock in a research note on Tuesday, May 12th. Four investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $15.40.

Babcock Trading Up 10.1%

The stock has a market capitalization of $1.16 billion, a price-to-earnings ratio of -43.53 and a beta of 1.19. The company has a debt-to-equity ratio of 4.21, a quick ratio of 1.33 and a current ratio of 1.45. The firm has a fifty day moving average of $9.55 and a 200-day moving average of $13.42.

Babcock (NYSE:BW - Get Free Report) last issued its quarterly earnings data on Monday, August 10th. The technology company reported $0.04 EPS for the quarter, topping analysts' consensus estimates of $0.02 by $0.02. Babcock had a negative return on equity of 4.51% and a negative net margin of 2.17%.The company had revenue of $319.69 million for the quarter, compared to analysts' expectations of $196.95 million. As a group, equities analysts predict that Babcock will post 0.27 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Philip Moeller acquired 5,000 shares of the firm's stock in a transaction on Thursday, August 13th. The stock was bought at an average cost of $9.50 per share, with a total value of $47,500.00. Following the transaction, the director directly owned 240,809 shares in the company, valued at approximately $2,287,685.50. This represents a 2.12% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. 2.80% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Babcock

A number of hedge funds have recently bought and sold shares of BW. Legal & General Group Plc acquired a new stake in shares of Babcock during the third quarter worth approximately $14,086,000. Arrowstreet Capital Limited Partnership raised its holdings in Babcock by 777.3% in the first quarter. Arrowstreet Capital Limited Partnership now owns 2,974,324 shares of the technology company's stock valued at $43,693,000 after acquiring an additional 2,635,304 shares in the last quarter. Marshall Wace LLP boosted its stake in Babcock by 497.7% during the 3rd quarter. Marshall Wace LLP now owns 2,366,601 shares of the technology company's stock valued at $6,863,000 after acquiring an additional 1,970,656 shares during the last quarter. California State Teachers Retirement System acquired a new position in Babcock during the 2nd quarter worth $25,159,000. Finally, Vanguard Group Inc. increased its position in shares of Babcock by 54.3% in the 3rd quarter. Vanguard Group Inc. now owns 4,423,243 shares of the technology company's stock worth $12,827,000 after purchasing an additional 1,556,692 shares during the last quarter. Institutional investors and hedge funds own 83.17% of the company's stock.

Babcock Company Profile

Babcock & Wilcox Enterprises, Inc NYSE: BW is a specialized provider of energy and environmental technologies and services serving power generation and heavy industrial markets. The company designs, manufactures and maintains critical components and systems that support the safe and efficient operation of both fossil-fuel and renewable power facilities. Its core offerings include industrial and utility boilers, environmental control systems for emissions reduction, and aftermarket support services ranging from inspection and maintenance to spare parts management.

In addition to its boiler and emissions control portfolio, Babcock & Wilcox Enterprises delivers lifecycle solutions aimed at enhancing plant performance and compliance.

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