FuelCell Energy (NASDAQ:FCEL) Stock Price Down 7.1% - Time to Sell?

Key Points

• FuelCell Energy shares fell 7.1% to about $16.76, with trading volume dramatically below average. The stock remains highly volatile, with a beta of 2.46.
• Analyst views are mixed: six rate the stock Buy, five Hold, and two Sell, producing an overall Hold rating and a consensus price target of $21.80.
• The company reported weaker-than-expected quarterly results, including an EPS loss of $0.64 versus the $0.41 consensus estimate and revenue of $33.0 million versus $38.79 million expected. Analysts project a full-year loss of $2.09 per share.

FuelCell Energy, Inc. (NASDAQ:FCEL - Get Free Report) shares fell 7.1% on Monday. The stock traded as low as $17.04 and last traded at $16.7580. 602,878 shares were traded during trading, a decline of 91% from the average session volume of 7,044,962 shares. The stock had previously closed at $18.03.

Analyst Ratings Changes

A number of research firms have commented on FCEL. Wells Fargo & Company raised their price target on shares of FuelCell Energy from $6.00 to $8.00 and gave the stock an "underweight" rating in a report on Tuesday, June 16th. KeyCorp reissued a "sector weight" rating on shares of FuelCell Energy in a research note on Tuesday, September 8th. Oppenheimer began coverage on FuelCell Energy in a report on Tuesday, September 29th. They set an "outperform" rating and a $24.00 price objective for the company. Canaccord Genuity Group reaffirmed a "buy" rating and set a $30.00 target price on shares of FuelCell Energy in a research report on Thursday, September 3rd. Finally, Jefferies Financial Group reaffirmed a "buy" rating and set a $20.00 target price (down from $24.00) on shares of FuelCell Energy in a research report on Thursday, September 3rd. Six investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $21.80.

FuelCell Energy Stock Performance

The company has a debt-to-equity ratio of 0.15, a quick ratio of 7.77 and a current ratio of 8.67. The stock has a market cap of $1.30 billion, a P/E ratio of -4.77 and a beta of 2.46. The company's 50 day moving average price is $18.19 and its 200-day moving average price is $17.64.

FuelCell Energy (NASDAQ:FCEL - Get Free Report) last released its quarterly earnings results 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). FuelCell Energy had a negative net margin of 113.60% and a negative return on equity of 16.85%. The firm had revenue of $33.00 million for the quarter, compared to the consensus estimate of $38.79 million. Equities analysts forecast that FuelCell Energy, Inc. will post -2.09 EPS for the current fiscal year.

Insider Activity

In other news, Director Homer Livingston, III bought 16,404 shares of the company's stock in a transaction on Monday, September 14th. The shares were purchased at an average price of $15.05 per share, with a total value of $246,880.20. Following the transaction, the director directly owned 42,747 shares in the company, valued at $643,342.35. This represents a 62.27% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, 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 of the company's stock, valued at approximately $2,183. This represents a 95.49% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 5.46% of the company's stock.

Institutional Trading of FuelCell Energy

Hedge funds have recently bought and sold shares of the business. State Street Corp grew its stake in FuelCell Energy by 818.0% in the 2nd quarter. State Street Corp now owns 2,143,908 shares of the energy company's stock valued at $77,202,000 after purchasing an additional 1,910,356 shares during the period. Baird Financial Group Inc. purchased a new stake in shares of FuelCell Energy during the 2nd quarter valued at $31,193,000. Dimensional Fund Advisors LP increased its position in shares of FuelCell Energy by 459.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 312,536 shares of the energy company's stock valued at $2,040,000 after purchasing an additional 256,640 shares during the last quarter. Tidal Investments LLC raised 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 worth $8,788,000 after purchasing an additional 92,572 shares during the period. Finally, Bank of America Corp DE raised its stake in shares of FuelCell Energy by 1,298.3% during the 1st quarter. Bank of America Corp DE now owns 190,724 shares of the energy company's stock worth $1,245,000 after purchasing an additional 177,084 shares during the period. 42.78% of the stock is currently owned by institutional investors.

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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