Bloom Energy (NYSE:BE) Stock Price Down 8.9% - Here's Why

Key Points

• Bloom Energy shares fell 8.9% to about $202.46 in mid-day trading, with volume 25% above its average. The stock remains below its 50-day moving average of $248.16.
• The company recently reported strong quarterly results, with EPS of $0.94 versus the $0.69 estimate and revenue of $1.24 billion, up 138.1% year over year.
• Analyst sentiment is mixed: the consensus rating is Hold with an average price target of $264.33, while insiders sold nearly $21.8 million of stock last quarter.

Bloom Energy Corporation (NYSE:BE - Get Free Report) dropped 8.9% during mid-day trading on Friday. The company traded as low as $194.15 and last traded at $202.4560. 16,512,309 shares changed hands during mid-day trading, an increase of 25% from the average daily volume of 13,218,145 shares. The stock had previously closed at $222.30.

Trending Headlines about Bloom Energy

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

• Positive Sentiment: Bloom Energy’s addition to the S&P 500 in September increases its visibility and can create demand from index-tracking funds. Analysts also see substantial long-term opportunity as data centers and artificial-intelligence infrastructure require reliable power. Bloom Energy Just Joined the S&P 500. Here's What History Says Happens Next.
• Positive Sentiment: A comparison with Plug Power favors BE on earnings growth, profitability and liquidity, supporting the view that Bloom is one of the stronger companies in the fuel-cell sector. Bloom Energy or Plug Power: Which Offers Better Long-Term Upside Now?
• Positive Sentiment: Recent coverage continues to highlight Bloom’s record quarter and explosive growth potential, while a recent analyst upgrade provided additional support for the stock’s investment case. Bloom Energy stock faces cash-flow test after record quarter

Wall Street Analysts Forecast Growth

BE has been the topic of several recent analyst reports. Barclays boosted their target price on Bloom Energy from $308.00 to $316.00 and gave the stock an "equal weight" rating in a report on Monday. Robert W. Baird raised their price objective on shares of Bloom Energy from $310.00 to $351.00 and gave the company an "outperform" rating in a research report on Thursday, October 15th. Wall Street Zen cut shares of Bloom Energy from a "buy" rating to a "hold" rating in a report on Saturday, October 24th. Oppenheimer reiterated a "market perform" rating on shares of Bloom Energy in a research report on Friday, October 23rd. Finally, BTIG Research cut their target price on Bloom Energy from $295.00 to $250.00 and set a "buy" rating for the company in a research report on Friday, October 23rd. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $264.33.

Bloom Energy Stock Performance

The company has a market capitalization of $59.63 billion, a price-to-earnings ratio of 124.21, a PEG ratio of 2.36 and a beta of 3.77. The company has a debt-to-equity ratio of 1.33, a current ratio of 3.74 and a quick ratio of 3.08. The company's 50-day moving average price is $248.16 and its two-hundred day moving average price is $219.47.

Bloom Energy (NYSE:BE - Get Free Report) last released its quarterly earnings results on Thursday, October 22nd. The company reported $0.94 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.69 by $0.25. The business had revenue of $1.24 billion during the quarter, compared to the consensus estimate of $1.07 billion. Bloom Energy had a return on equity of 45.29% and a net margin of 13.53%. The company's quarterly revenue was up 138.1% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.15 EPS. On average, equities research analysts anticipate that Bloom Energy Corporation will post 2.55 EPS for the current fiscal year.

Insider Activity at Bloom Energy

In other news, Director Jeffrey Immelt sold 30,000 shares of the business's stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $238.91, for a total transaction of $7,167,300.00. Following the transaction, the director directly owned 201,243 shares of the company's stock, valued at approximately $48,078,965.13. The trade was a 12.97% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible 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 transaction of $775,072.20. Following the completion of the transaction, the insider directly owned 202,494 shares of the company's stock, valued at approximately $54,685,529.64. The trade was a 1.40% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 89,698 shares of company stock valued at $21,780,758 in the last quarter. 3.00% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Blue Trust Inc. grew its holdings in shares of Bloom Energy by 37.2% during the first quarter. Blue Trust Inc. now owns 188 shares of the company's stock worth $25,000 after buying an additional 51 shares in the last quarter. Continuum Advisory LLC acquired a new position in Bloom Energy during the 2nd quarter worth about $25,000. Trifecta Capital Advisors LLC acquired a new stake in Bloom Energy in the 3rd quarter valued at about $26,000. Anchor Investment Management LLC purchased a new stake in Bloom Energy during the first quarter worth approximately $27,000. Finally, MJT & Associates Financial Advisory Group Inc. lifted its stake in Bloom Energy by 49.3% in the second quarter. MJT & Associates Financial Advisory Group Inc. now owns 112 shares of the company's stock valued at $34,000 after buying an additional 37 shares during the last quarter. 77.04% of the stock is owned by hedge funds and other institutional investors.

Bloom Energy Company Profile

Bloom Energy Corporation develops and manufactures energy systems designed to generate electricity on-site. Its primary product is the Bloom Energy Server, a solid oxide fuel cell platform that converts fuel into electricity through an electrochemical process rather than combustion. The systems are used by businesses, utilities, data centers and other organizations seeking reliable, distributed power.

The company also develops electrolyzers based on its solid oxide technology. These systems are designed to produce hydrogen from electricity and water and support applications related to industrial operations, energy storage and the emerging hydrogen economy.

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