Bloom Energy (NYSE:BE) Stock Falls 3.6% - Here's What Happened

Key Points

• Bloom Energy shares fell 3.6% in Thursday’s midday trading, closing in on $202 after dipping as low as $193.44; trading volume was 5% above its daily average.
• The company beat quarterly estimates, reporting EPS of $0.94 versus $0.69 expected and revenue of $1.24 billion, up 138.1% year over year. Investor interest in potential AI-hyperscaler demand is a growth catalyst, though commentary cites cash burn and volatility as risks.
• Analyst views are mixed: MarketBeat’s consensus is Hold, with an average price target of $263.05; recent target changes ranged from JPMorgan’s cut to $292 to UBS’s increase to $350.

Shares of Bloom Energy Corporation (NYSE:BE - Get Free Report) traded down 3.6% during mid-day trading on Thursday. The company traded as low as $193.44 and last traded at $202.0270. 14,200,909 shares traded hands during trading, an increase of 5% from the average daily volume of 13,488,427 shares. The stock had previously closed at $209.47.

Bloom Energy News Summary

Investors following BE have been watching these news items:

• Positive Sentiment: Bloom’s appeal to AI customers adds to the growth case: an article describes the shift from traditional customers such as hospitals and retailers toward AI hyperscalers, alongside large potential orders. Bloom Energy Has Found an Unexpected Customer: AI
• Positive Sentiment: Royal Bank of Canada assigned Bloom an “Outperform” rating, providing a favorable analyst view. Bloom Energy Earns Outperform Rating from RBC
• Negative Sentiment: Commentary flags cash burn and the stock’s volatility as risks, even with a strong quarter and potential gigawatt-scale demand. Those concerns may temper enthusiasm about growth and make the shares sensitive to changes in AI-investment expectations. Bloom Energy Has Found an Unexpected Customer: AI

Wall Street Analysts Forecast Growth

BE has been the subject of a number of recent analyst reports. JPMorgan Chase & Co. cut their price objective on Bloom Energy from $314.00 to $292.00 and set an "overweight" rating for the company in a research report on Friday, October 23rd. UBS Group increased their price objective on shares of Bloom Energy from $325.00 to $350.00 and gave the company a "buy" rating in a report on Wednesday, October 7th. TD Cowen raised shares of Bloom Energy to a "hold" rating in a research note on Monday, October 5th. Truist Financial upped their price target on shares of Bloom Energy from $218.00 to $240.00 and gave the stock a "hold" rating in a research report on Friday, October 16th. Finally, Wells Fargo & Company raised their price target on shares of Bloom Energy from $176.00 to $182.00 and gave the company an "equal weight" rating in a research note on Monday, October 26th. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Bloom Energy has a consensus rating of "Hold" and an average price target of $263.05.

Bloom Energy Stock Down 3.6%

The business has a fifty day simple moving average of $245.20 and a two-hundred day simple moving average of $221.73. The company has a current ratio of 3.74, a quick ratio of 3.08 and a debt-to-equity ratio of 1.33. The company has a market cap of $59.73 billion, a PE ratio of 123.94, a price-to-earnings-growth ratio of 1.87 and a beta of 3.63.

Bloom Energy (NYSE:BE - Get Free Report) last released its earnings results on Thursday, October 22nd. The company reported $0.94 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.69 by $0.25. The business had revenue of $1.24 billion during the quarter, compared to analyst estimates of $1.07 billion. Bloom Energy had a net margin of 13.53% and a return on equity of 45.29%. The company's revenue for the quarter was up 138.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.15 earnings per share. As a group, equities research analysts predict that Bloom Energy Corporation will post 2.61 earnings per share for the current year.

Insiders Place Their Bets

In related news, Director John T. Chambers sold 8,828 shares of Bloom Energy stock in a transaction that occurred on Monday, November 2nd. The stock was sold at an average price of $203.43, for a total transaction of $1,795,880.04. Following the transaction, the director owned 199,505 shares in the company, valued at approximately $40,585,302.15. This trade represents a 4.24% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Satish Chitoori sold 2,870 shares of the business's stock in a transaction on Wednesday, September 16th. The stock was sold at an average price of $270.06, for a total value of $775,072.20. Following the transaction, the insider directly owned 202,494 shares in the company, valued at $54,685,529.64. This trade represents a 1.40% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 70,859 shares of company stock worth $17,244,650. 3.00% of the stock is currently owned by insiders.

Institutional Trading of Bloom Energy

Hedge funds and other institutional investors have recently modified their holdings of the stock. Continuum Advisory LLC purchased a new position in Bloom Energy during the second quarter worth about $25,000. Trifecta Capital Advisors LLC purchased a new stake in shares of Bloom Energy in the 3rd quarter valued at approximately $26,000. REAP Financial Group LLC purchased a new stake in shares of Bloom Energy in the 3rd quarter valued at approximately $28,000. MJT & Associates Financial Advisory Group Inc. increased its holdings in shares of Bloom Energy by 49.3% during the 2nd quarter. MJT & Associates Financial Advisory Group Inc. now owns 112 shares of the company's stock worth $34,000 after buying an additional 37 shares during the last quarter. Finally, Oakworth Capital Inc. acquired a new stake in shares of Bloom Energy during the 3rd quarter worth approximately $35,000. 77.04% of the stock is owned by institutional investors and hedge funds.

About Bloom Energy

Bloom Energy Corporation develops solid oxide fuel cell technology for on-site electricity generation and hydrogen production. Its Bloom Energy Server systems generate power near the point of use, helping businesses and institutions meet electricity needs and support resilient energy operations. The company also offers solid oxide electrolyzers designed to produce hydrogen. Founded in 2001 by K.R. Sridhar, Bloom Energy is headquartered in San Jose, California. It serves customers in the United States and international markets, including countries in Asia.

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