Enersys (NYSE:ENS) Stock Price Down 7% - Here's Why

Key Points

• Enersys shares fell 7% to about $178.96, with trading volume roughly 83% below the average session volume.
• Despite the selloff, analysts remain bullish: the stock has a consensus “Buy” rating and a $265 price target, implying substantial upside from the reported trading price.
• Recent fundamentals were strong, with quarterly EPS of $3.66 beating estimates and revenue rising 4.8% year over year. Enersys also increased its quarterly dividend to $0.2875 per share.

Enersys (NYSE:ENS - Get Free Report) traded down 7% on Wednesday. The stock traded as low as $179.51 and last traded at $178.9570. Approximately 81,170 shares traded hands during trading, a decline of 83% from the average session volume of 486,190 shares. The stock had previously closed at $192.49.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on ENS. Weiss Ratings reissued a "buy (b-)" rating on shares of Enersys in a report on Tuesday, September 22nd. Oppenheimer reissued an "outperform" rating on shares of Enersys in a research note on Friday, August 14th. Zacks Research upgraded shares of Enersys from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, August 18th. Wall Street Zen raised shares of Enersys from a "buy" rating to a "strong-buy" rating in a report on Saturday, August 15th. Finally, BTIG Research reissued a "buy" rating and issued a $280.00 price objective on shares of Enersys in a research note on Thursday, August 13th. One research analyst has rated the stock with a Strong Buy rating and five have given a Buy rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Buy" and a consensus target price of $265.00.

Enersys Trading Down 5.6%

The company has a current ratio of 2.80, a quick ratio of 1.83 and a debt-to-equity ratio of 0.51. The firm has a market capitalization of $6.55 billion, a price-to-earnings ratio of 19.47, a P/E/G ratio of 0.96 and a beta of 1.18. The firm's 50-day moving average is $185.40 and its 200 day moving average is $200.66.

Enersys (NYSE:ENS - Get Free Report) last released its quarterly earnings results on Wednesday, August 12th. The industrial products company reported $3.66 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.83 by $0.83. Enersys had a net margin of 9.29% and a return on equity of 24.02%. The firm had revenue of $935.64 million during the quarter, compared to the consensus estimate of $928.01 million. During the same quarter last year, the firm earned $2.08 earnings per share. The company's revenue for the quarter was up 4.8% on a year-over-year basis. Enersys has set its Q2 2027 guidance at 1.950-2.050 EPS. On average, equities analysts predict that Enersys will post 13.41 earnings per share for the current fiscal year.

Enersys Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, October 2nd. Stockholders of record on Friday, September 18th were given a dividend of $0.2875 per share. This represents a $1.15 dividend on an annualized basis and a dividend yield of 0.6%. This is a positive change from Enersys's previous quarterly dividend of $0.2625. The ex-dividend date was Friday, September 18th. Enersys's dividend payout ratio is 12.31%.

Institutional Trading of Enersys

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new position in shares of Enersys in the 2nd quarter worth approximately $1,221,455,000. Principal Financial Group Inc. lifted its holdings in Enersys by 10.1% in the first quarter. Principal Financial Group Inc. now owns 551,045 shares of the industrial products company's stock valued at $95,728,000 after buying an additional 50,660 shares during the period. Bank of America Corp DE lifted its holdings in Enersys by 6.8% in the first quarter. Bank of America Corp DE now owns 459,504 shares of the industrial products company's stock valued at $79,825,000 after buying an additional 29,364 shares during the period. Paradigm Capital Management Inc. NY bought a new stake in Enersys during the second quarter valued at $102,249,000. Finally, Arrowstreet Capital Limited Partnership grew its holdings in Enersys by 6.4% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 345,303 shares of the industrial products company's stock worth $59,986,000 after acquiring an additional 20,767 shares during the period. Institutional investors and hedge funds own 94.93% of the company's stock.

Enersys Company Profile

EnerSys NYSE: ENS is a global provider of stored energy solutions and power-management systems. The company designs, manufactures and distributes industrial batteries, energy storage systems, chargers, power-conversion equipment and related services for applications that require reliable backup or motive power.

Its product portfolio includes lead-acid and lithium-ion batteries, battery chargers and monitoring systems, as well as specialty solutions for telecommunications, data centers, utilities, transportation, material handling, aerospace and defense.

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