Powell Industries (NASDAQ:POWL) Shares Gap Up - Here's What Happened

Key Points

• Powell Industries shares opened higher, rising from a prior close of $161.36 to $168.60 before trading near $163.91.
• Analyst sentiment remains moderately positive, with a consensus rating of “Moderate Buy” and an average price target of $187.92, despite mixed revisions including JPMorgan’s target cut to $250.
• The company’s latest quarterly results missed expectations, reporting $1.42 in EPS versus $1.49 expected and revenue of $311.74 million versus $316.70 million; it also pays a $0.09 quarterly dividend yielding about 0.2%.

Powell Industries, Inc. (NASDAQ:POWL - Get Free Report)'s stock price gapped up before the market opened on Wednesday. The stock had previously closed at $161.36, but opened at $168.60. Powell Industries shares last traded at $163.9080, with a volume of 34,130 shares trading hands.

Analyst Ratings Changes

Several equities research analysts recently issued reports on POWL shares. Glj Research raised shares of Powell Industries from a "hold" rating to a "strong-buy" rating in a report on Tuesday, July 14th. Cantor Fitzgerald reaffirmed a "neutral" rating and set a $235.00 price target on shares of Powell Industries in a report on Thursday, October 1st. JPMorgan Chase & Co. dropped their price target on shares of Powell Industries from $300.00 to $250.00 and set an "overweight" rating for the company in a research report on Tuesday, October 13th. Finally, Weiss Ratings lowered shares of Powell Industries from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, August 19th. Two research analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $187.92.

Powell Industries Stock Performance

The firm has a market capitalization of $5.96 billion, a PE ratio of 31.32 and a beta of 1.17. The stock has a fifty day moving average price of $182.01 and a 200-day moving average price of $211.34.

Powell Industries (NASDAQ:POWL - Get Free Report) last posted its earnings results on Monday, August 3rd. The industrial products company reported $1.42 EPS for the quarter, missing analysts' consensus estimates of $1.49 by ($0.07). The company had revenue of $311.74 million for the quarter, compared to the consensus estimate of $316.70 million. During the same period last year, the firm earned $3.96 earnings per share. The firm's revenue was up 8.9% compared to the same quarter last year. Research analysts expect that Powell Industries, Inc. will post 5.36 earnings per share for the current fiscal year.

Powell Industries Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 16th. Shareholders of record on Wednesday, August 19th were issued a $0.09 dividend. The ex-dividend date of this dividend was Wednesday, August 19th. This represents a $0.36 dividend on an annualized basis and a dividend yield of 0.2%. Powell Industries's dividend payout ratio (DPR) is currently 6.91%.

Insiders Place Their Bets

In other Powell Industries news, insider Ping Ni sold 700 shares of the stock in a transaction dated Friday, October 16th. The stock was sold at an average price of $167.14, for a total transaction of $116,998.00. Following the sale, the insider directly owned 5,339 shares of the company's stock, valued at approximately $892,360.46. This trade represents a 11.59% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, VP William Marshall Mauney, Jr. sold 301 shares of the business's stock in a transaction on Wednesday, September 30th. The shares were sold at an average price of $187.67, for a total transaction of $56,488.67. Following the completion of the transaction, the vice president owned 10,552 shares of the company's stock, valued at approximately $1,980,293.84. This represents a 2.77% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 5,800 shares of company stock valued at $1,074,115. 2.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On Powell Industries

Several hedge funds and other institutional investors have recently added to or reduced their stakes in POWL. BlackRock Inc. acquired a new stake in Powell Industries during the 2nd quarter worth $1,033,376,000. Jupiter Topco LLC purchased a new position in shares of Powell Industries during the 2nd quarter worth $93,845,000. Tidal Investments LLC raised its holdings in Powell Industries by 222.3% in the 2nd quarter. Tidal Investments LLC now owns 282,483 shares of the industrial products company's stock valued at $80,892,000 after buying an additional 194,840 shares during the period. Tema ETFs LLC lifted its holdings in shares of Powell Industries by 217.3% in the 2nd quarter. Tema ETFs LLC now owns 268,692 shares of the industrial products company's stock worth $76,943,000 after acquiring an additional 184,010 shares during the last quarter. Finally, Janus Henderson Group PLC boosted its position in shares of Powell Industries by 55.1% during the first quarter. Janus Henderson Group PLC now owns 224,966 shares of the industrial products company's stock worth $121,643,000 after buying an additional 79,932 shares during the period. 89.77% of the stock is owned by hedge funds and other institutional investors.

Powell Industries Company Profile

Powell Industries, Inc is a Houston-based manufacturer of custom-engineered electrical equipment and systems used to control, distribute and monitor electrical power. The company serves industrial and utility customers that require equipment designed for demanding operating environments, including facilities with high-voltage, hazardous or highly regulated applications.

Its product portfolio includes medium- and high-voltage metal-clad switchgear, motor control centers, electrical houses and enclosures, control panels, switchboards, bus systems and related protection and control equipment.

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