FuelCell Energy (NASDAQ:FCEL) Stock Jumps 7% - Still a Buy?

Key Points

• FuelCell Energy shares rose 7% to about $17.73, though trading volume was 62% below the average session level.
• Analysts see potential in FuelCell’s strategy to power AI data centers, but the company needs more signed orders and higher production capacity. Ratings remain mixed, with a consensus “Hold” and an average price target of $21.80.
• The company’s latest quarter fell short of expectations, reporting a $0.64 per-share loss versus the expected $0.41 loss and revenue of $33 million versus the $38.79 million estimate.

FuelCell Energy, Inc. (NASDAQ:FCEL - Get Free Report) shares rose 7% during mid-day trading on Friday. The stock traded as high as $17.94 and last traded at $17.7250. 2,685,350 shares were traded during trading, a decline of 62% from the average session volume of 6,988,107 shares. The stock had previously closed at $16.57.

Trending Headlines about FuelCell Energy

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

• Positive Sentiment: Oppenheimer reportedly maintained a constructive view of FuelCell’s strategy to supply power for artificial-intelligence data centers. However, the firm said FCEL needs more signed data-center orders and greater factory output to improve project economics. Oppenheimer backs FuelCell's AI power bet, but orders are the test
• Positive Sentiment: Another report highlighted a new bullish analyst rating, providing some support for FCEL after its significant longer-term volatility. The positive view appears dependent on FuelCell converting its data-center opportunity into firm orders and improving execution. FuelCell Stock Just Scored a New Bullish Rating

Analysts Set New Price Targets

A number of research analysts have recently issued reports on the stock. Weiss Ratings restated a "sell (d-)" rating on shares of FuelCell Energy in a research report on Monday, August 17th. B. Riley Financial raised shares of FuelCell Energy from a "neutral" rating to a "buy" rating and boosted their price objective for the company from $13.00 to $32.00 in a research report on Monday, June 29th. Wells Fargo & Company increased their price objective on shares of FuelCell Energy from $6.00 to $8.00 and gave the stock an "underweight" rating in a research note on Tuesday, June 16th. Citigroup began coverage on shares of FuelCell Energy in a report on Tuesday, September 15th. They issued a "neutral" rating and a $19.00 target price on the stock. Finally, Craig Hallum began coverage on FuelCell Energy in a research note on Wednesday, September 9th. They issued a "buy" rating and a $22.00 target price for the company. Six research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $21.80.

FuelCell Energy Trading Up 6.9%

The firm's fifty day moving average price is $18.48 and its 200-day moving average price is $17.15. The company has a market cap of $1.42 billion, a price-to-earnings ratio of -5.17 and a beta of 2.46. The company has a debt-to-equity ratio of 0.15, a current ratio of 8.67 and a quick ratio of 7.77.

FuelCell Energy (NASDAQ:FCEL - Get Free Report) last released its quarterly earnings data on Wednesday, September 2nd. The energy company reported ($0.64) earnings per share for the quarter, missing analysts' consensus estimates of ($0.41) by ($0.23). The firm had revenue of $33.00 million during the quarter, compared to analyst estimates of $38.79 million. FuelCell Energy had a negative return on equity of 16.85% and a negative net margin of 113.60%. On average, equities analysts expect that FuelCell Energy, Inc. will post -2.09 EPS for the current fiscal year.

Insider Buying and Selling

In other news, EVP Shankar Achanta sold 2,500 shares of FuelCell Energy stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $28.71, for a total transaction of $71,775.00. Following the sale, the executive vice president owned 2,618 shares of the company's stock, valued at approximately $75,162.78. The trade was a 48.85% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Homer Livingston, III acquired 16,404 shares of the firm's stock in a transaction that occurred on Monday, September 14th. The stock was acquired at an average cost of $15.05 per share, with a total value of $246,880.20. Following the completion of the acquisition, the director directly owned 42,747 shares in the company, valued at approximately $643,342.35. This represents a 62.27% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders own 5.46% of the company's stock.

Hedge Funds Weigh In On FuelCell Energy

Institutional investors and hedge funds have recently bought and sold shares of the stock. Allworth Financial LP lifted its stake in shares of FuelCell Energy by 444.4% in the 2nd quarter. Allworth Financial LP now owns 1,301 shares of the energy company's stock worth $47,000 after acquiring an additional 1,062 shares during the period. NewEdge Advisors LLC raised its holdings in FuelCell Energy by 301.3% during the second quarter. NewEdge Advisors LLC now owns 1,605 shares of the energy company's stock worth $58,000 after purchasing an additional 1,205 shares in the last quarter. Optiver Holding B.V. acquired a new stake in FuelCell Energy in the first quarter worth approximately $88,000. Hollencrest Capital Management bought a new position in FuelCell Energy during the 2nd quarter valued at $90,000. Finally, Integrated Wealth Concepts LLC bought a new position in FuelCell Energy during the 2nd quarter valued at $120,000. Institutional investors own 42.78% of the company's stock.

FuelCell Energy Company Profile

FuelCell Energy, Inc develops and manufactures fuel cell platforms for distributed power generation, microgrids, and energy storage. Its systems generate electricity electrochemically from fuels such as natural gas, biogas, and hydrogen, with the potential for lower emissions than conventional combustion-based generation.

The company's product portfolio includes carbonate fuel cell platforms, solid oxide fuel cell and electrolysis technologies, and solutions designed for hydrogen production, carbon capture, and long-duration energy storage.

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