FuelCell Energy (NASDAQ:FCEL) Stock Price Down 15.6% - What's Next?

Key Points

• FuelCell Energy shares fell 15.6% to $8.897, with trading volume 85% below its daily average, amid continued weakness across fuel-cell stocks.
• The decline comes amid legal and business concerns: a pending securities class action alleges the company failed to disclose that output was below requirements in its Fit Energy agreement. The allegations have not been proven.
• Investors are also weighing a recent earnings miss: FuelCell reported a loss of $0.64 per share versus estimates of $0.41 and revenue of $33 million versus $38.79 million expected. Analysts’ consensus rating is Hold, with an average price target of $21.80.

FuelCell Energy, Inc. (NASDAQ:FCEL - Get Free Report) shares dropped 15.6% during trading on Thursday. The stock traded as low as $9.22 and last traded at $8.8970. 1,023,807 shares changed hands during mid-day trading, a decline of 85% from the average daily volume of 6,996,867 shares. The stock had previously closed at $10.54.

Key Stories Impacting FuelCell Energy

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

• Negative Sentiment: Fuel-cell shares continued to slide after the U.S. election, with the industry-wide weakness weighing on FCEL. The article notes that a customer deal elsewhere in the sector has not been enough to offset the downturn. Article: FuelCell Energy Plunges, Bloom Energy Sinks
• Negative Sentiment: Multiple law firms are publicizing a securities class action and the November 10 lead-plaintiff deadline. The lawsuit alleges that FuelCell failed to disclose that its output was below the level required under its Fit Energy agreement, which was announced as a deal for up to 380 MW of fuel-cell power. These are allegations, not proven findings, but the litigation adds reputational and legal uncertainty. Article: FuelCell Energy Class Action Reminder
• Negative Sentiment: The selloff also reflects lingering concerns from FuelCell’s September 2 quarterly report: the company reported a larger-than-expected loss and revenue below consensus estimates. Article: FuelCell Energy Plunges, Bloom Energy Sinks

Analyst Ratings Changes

FCEL has been the subject of a number of research analyst reports. Citigroup assumed coverage on shares of FuelCell Energy in a research report on Tuesday, September 15th. They issued a "neutral" rating and a $19.00 price target for the company. Jefferies Financial Group reissued a "buy" rating and issued a $20.00 price objective (down from $24.00) on shares of FuelCell Energy in a research note on Thursday, September 3rd. KeyCorp restated a "sector weight" rating on shares of FuelCell Energy in a report on Tuesday, September 8th. Oppenheimer initiated coverage on shares of FuelCell Energy in a research report on Tuesday, September 29th. They set an "outperform" rating and a $24.00 target price on the stock. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of FuelCell Energy in a research report on Monday, August 17th. Six equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Hold" and an average price target of $21.80.

FuelCell Energy Stock Down 19.3%

The company has a market capitalization of $679.73 million, a P/E ratio of -2.48 and a beta of 2.47. The company has a quick ratio of 7.77, a current ratio of 8.67 and a debt-to-equity ratio of 0.15. The firm has a fifty day simple moving average of $15.42 and a 200-day simple moving average of $14.93.

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

Insider Activity

In other FuelCell Energy news, EVP Shankar Achanta sold 2,500 shares of the company's stock in a transaction that occurred on Tuesday, October 6th. The shares were sold at an average price of $18.50, for a total value of $46,250.00. Following the completion of the transaction, the executive vice president directly owned 118 shares in the company, valued at approximately $2,183. This represents a 95.49% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 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 bought at an average price 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 of the company's stock, valued at $643,342.35. This trade represents a 62.27% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Company insiders own 5.46% of the company's stock.

Institutional Investors Weigh In On FuelCell Energy

Several institutional investors and hedge funds have recently made changes to their positions in the business. State Street Corp lifted its holdings in shares of FuelCell Energy by 818.0% in the 2nd quarter. State Street Corp now owns 2,143,908 shares of the energy company's stock worth $77,202,000 after acquiring an additional 1,910,356 shares during the last quarter. Baird Financial Group Inc. bought a new position in shares of FuelCell Energy during the second quarter valued at approximately $31,193,000. Tidal Investments LLC boosted its stake in shares of FuelCell Energy by 61.1% during the 2nd quarter. Tidal Investments LLC now owns 244,049 shares of the energy company's stock valued at $8,788,000 after purchasing an additional 92,572 shares in the last quarter. Bank of New York Mellon Corp bought a new position in shares of FuelCell Energy in the 2nd quarter worth approximately $6,094,000. Finally, Vontobel Holding Ltd. bought a new position in shares of FuelCell Energy during the third quarter valued at $4,910,000. Institutional investors own 42.78% of the company's stock.

FuelCell Energy Company Profile

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