Bloom Energy (NYSE:BE) Stock Falls 6.3% - Here's What Happened

Key Points

• Bloom Energy shares fell 6.3% to about $272.90 amid broader weakness in fuel-cell and hydrogen stocks, despite UBS raising its price target to $350. Investors also appear to be taking profits after a major rally and remain concerned about the company’s premium valuation and debt.
• Analyst sentiment remains mixed but generally positive: MarketBeat reports a “Moderate Buy” consensus with an average price target of $258.32, while Bernstein maintained a Market Perform rating with a $282 target and several firms recently lowered their targets.
• Bloom’s growth outlook is supported by rising AI data-center power demand and manufacturing expansion, while its latest quarter showed 165.5% year-over-year revenue growth and earnings of $0.78 per share versus expectations of $0.39.

Bloom Energy Corporation (NYSE:BE - Get Free Report)'s stock price fell 6.3% on Thursday. The stock traded as low as $264.50 and last traded at $272.8980. 15,352,415 shares traded hands during mid-day trading, an increase of 18% from the average session volume of 12,988,465 shares. The stock had previously closed at $291.29.

Key Headlines Impacting Bloom Energy

Here are the key news stories impacting Bloom Energy this week:

• Positive Sentiment: UBS raised its price target for Bloom Energy to $350, signaling confidence in the company’s prospects despite the sector-wide weakness. Bloom Energy Tumbles 8% Even as UBS Lifts Its Price Target to $350
• Positive Sentiment: Recent analyst commentary continues to identify Bloom as a potential beneficiary of the growing power needs of AI data centers. Morgan Stanley cited a projected 77-gigawatt data-center power shortfall, while Jim Cramer called Bloom a leading AI power play because its systems can provide electricity without relying entirely on constrained utility grids. Morgan Stanley Sees Bloom Energy as a Winner
• Positive Sentiment: Bloom’s purchase of a 158,000-square-foot Fremont facility suggests it is expanding manufacturing capacity in anticipation of stronger demand. Bloom Energy Is Building Like Demand Is About to Explode
• Neutral Sentiment: Bernstein reaffirmed a Market Perform rating and set a $282 price target. The firm said Bloom is already positioned for a broader power buildout, but the target indicates limited upside from recent trading levels. Bernstein Says Bloom Energy Is Positioned for Power Buildout
• Negative Sentiment: Investors appear to be taking profits after a major rally and reacting to Bloom’s premium valuation. Commentary notes that bullish earnings expectations and AI demand are offset by high debt and a very elevated earnings multiple.
• Negative Sentiment: Weakness spread across fuel-cell and hydrogen shares, including FuelCell Energy and Plug Power, creating sector-wide pressure that overwhelmed UBS’s target increase. Fuel Cell and Hydrogen Stocks Sell Off

Analyst Ratings Changes

A number of research analysts have weighed in on the stock. Oppenheimer reissued a "market perform" rating on shares of Bloom Energy in a research note on Wednesday, July 29th. Truist Financial cut their price target on Bloom Energy from $250.00 to $218.00 and set a "hold" rating for the company in a report on Wednesday, July 29th. Wall Street Zen raised Bloom Energy from a "hold" rating to a "buy" rating in a research note on Sunday, September 6th. BMO Capital Markets dropped their target price on Bloom Energy from $279.00 to $227.00 and set a "market perform" rating for the company in a report on Wednesday, July 29th. Finally, Wells Fargo & Company reduced their price target on Bloom Energy from $217.00 to $176.00 and set an "equal weight" rating on the stock in a report on Thursday, July 30th. Two investment analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Bloom Energy has a consensus rating of "Moderate Buy" and an average target price of $258.32.

Bloom Energy Price Performance

The company has a quick ratio of 3.41, a current ratio of 4.09 and a debt-to-equity ratio of 1.59. The company has a market cap of $80.38 billion, a price-to-earnings ratio of 363.86, a PEG ratio of 3.78 and a beta of 3.77. The stock's 50-day simple moving average is $244.66 and its 200 day simple moving average is $241.34.

Bloom Energy (NYSE:BE - Get Free Report) last announced its quarterly earnings results on Tuesday, July 28th. The company reported $0.78 earnings per share for the quarter, beating analysts' consensus estimates of $0.39 by $0.39. The business had revenue of $1.07 billion during the quarter, compared to analysts' expectations of $826.13 million. Bloom Energy had a net margin of 7.87% and a return on equity of 35.45%. The business's revenue for the quarter was up 165.5% on a year-over-year basis. During the same period last year, the business earned $0.10 earnings per share. Bloom Energy has set its FY 2026 guidance at 2.550-2.850 EPS. On average, equities research analysts anticipate that Bloom Energy Corporation will post 2.06 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Aman Joshi sold 8,437 shares of the business's stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $277.17, for a total value of $2,338,483.29. Following the sale, the insider owned 147,092 shares in the company, valued at approximately $40,769,489.64. The trade was a 5.42% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Satish Chitoori sold 2,870 shares of the stock in a transaction dated 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 approximately $54,685,529.64. The trade was 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. In the last three months, insiders sold 89,698 shares of company stock valued at $21,780,758. Insiders own 3.00% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in BE. Montanova Capital LLC acquired a new stake in shares of Bloom Energy during the second quarter worth about $10,231,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in shares of Bloom Energy by 78.3% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,327,549 shares of the company's stock valued at $401,849,000 after purchasing an additional 583,135 shares during the period. Militia Capital Management LLC purchased a new stake in shares of Bloom Energy during the first quarter worth approximately $813,000. Assenagon Asset Management S.A. lifted its holdings in shares of Bloom Energy by 3,398.3% during the second quarter. Assenagon Asset Management S.A. now owns 239,877 shares of the company's stock worth $72,611,000 after purchasing an additional 233,020 shares during the period. Finally, Zweig DiMenna Associates LLC purchased a new position in Bloom Energy in the 1st quarter valued at $8,468,000. Institutional investors and hedge funds own 77.04% of the company's stock.

About Bloom Energy

Bloom Energy Corporation NYSE: BE develops and manufactures energy-generation and hydrogen technologies. Its primary product is the Bloom Energy Server, a solid-oxide fuel cell system designed to produce electricity onsite from fuels such as natural gas, biogas and hydrogen. The company's distributed-generation systems are intended to provide reliable, low-emission power for commercial and industrial facilities, data centers, utilities and other large energy users.

Bloom Energy also produces electrolyzers that use electricity to separate water into hydrogen and oxygen.

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