Powell Industries (NASDAQ:POWL) Stock Price Down 10.9% - Here's What Happened

Key Points

• Powell Industries shares fell 10.9% to about $151.69, with trading volume roughly 80% below average. The stock remains below its 50-day and 200-day moving averages.
• Analyst sentiment remains cautiously positive, with a consensus “Moderate Buy” rating and an average price target of $187.92, although JPMorgan lowered its target to $250 and Weiss Ratings downgraded the stock to “Hold.”
• The latest quarterly results missed expectations, with EPS of $1.42 versus $1.49 expected and revenue of $311.74 million versus $316.70 million estimated. Revenue still grew 8.9% year over year, while insiders sold more than $1 million of shares over the past 90 days.

Shares of Powell Industries, Inc. (NASDAQ:POWL - Get Free Report) dropped 10.9% during mid-day trading on Thursday. The company traded as low as $153.79 and last traded at $151.6920. Approximately 145,140 shares were traded during trading, a decline of 80% from the average daily volume of 719,609 shares. The stock had previously closed at $170.32.

Analyst Upgrades and Downgrades

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

Powell Industries Trading Down 11.5%

The firm has a fifty day simple moving average of $185.96 and a 200 day simple moving average of $232.22. The stock has a market cap of $5.49 billion, a price-to-earnings ratio of 28.93, a PEG ratio of 1.71 and a beta of 1.17.

Powell Industries (NASDAQ:POWL - Get Free Report) last announced its quarterly earnings data on Monday, August 3rd. The industrial products company reported $1.42 earnings per share for the quarter, missing the consensus estimate of $1.49 by ($0.07). Powell Industries had a return on equity of 27.51% and a net margin of 16.49%. The firm had revenue of $311.74 million for the quarter, compared to analyst estimates of $316.70 million. During the same period in the previous year, the business posted $3.96 EPS. Powell Industries's revenue for the quarter was up 8.9% compared to the same quarter last year. On average, equities analysts expect that Powell Industries, Inc. will post 5.36 earnings per share for the current year.

Powell Industries Dividend Announcement

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

Insiders Place Their Bets

In other news, CEO Brett Cope sold 4,799 shares of the stock in a transaction on Wednesday, September 30th. The shares were sold at an average price of $187.67, for a total value of $900,628.33. Following the completion of the transaction, the chief executive officer owned 507,934 shares in the company, valued at approximately $95,323,973.78. This represents a 0.94% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Ping Ni sold 700 shares of the stock in a transaction on Friday, October 16th. The shares were sold at an average price of $167.14, for a total transaction of $116,998.00. Following the completion of the transaction, the insider owned 5,339 shares of the company's stock, valued at approximately $892,360.46. This represents a 11.59% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 5,800 shares of company stock worth $1,074,115 over the last 90 days. Corporate insiders own 2.20% of the company's stock.

Hedge Funds Weigh In On Powell Industries

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. USA Financial Formulas bought a new stake in Powell Industries in the first quarter valued at about $43,000. Hollencrest Capital Management acquired a new position in Powell Industries in the first quarter worth about $54,000. MassMutual Private Wealth & Trust FSB raised its position in Powell Industries by 183.8% in the second quarter. MassMutual Private Wealth & Trust FSB now owns 105 shares of the industrial products company's stock worth $30,000 after purchasing an additional 68 shares in the last quarter. Allworth Financial LP acquired a new position in Powell Industries in the second quarter worth about $33,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in Powell Industries in the second quarter worth about $34,000. 89.77% of the stock is owned by 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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