Traders Buy Large Volume of Babcock Put Options (NYSE:BW)

Key Points

• Unusually heavy bearish options activity: Traders purchased 9,536 Babcock put options, 85% above the average volume of 5,141.
• Institutional ownership remains high: Several major investors increased their stakes, and institutions collectively own 83.17% of Babcock’s shares.
• Shares have weakened despite an earnings beat: Babcock traded at $10.07, well below its 50-day and 200-day moving averages, even after reporting quarterly EPS of $0.04 versus the $0.02 consensus estimate. Analysts maintain a consensus “Hold” rating with an average price target of $14.25.

Babcock (NYSE:BW - Get Free Report) was the recipient of unusually large options trading activity on Friday. Traders purchased 9,536 put options on the company. This is an increase of 85% compared to the average volume of 5,141 put options.

Institutional Investors Weigh In On Babcock

Large investors have recently added to or reduced their stakes in the company. Legal & General Group Plc grew its stake in shares of Babcock by 10.8% in the fourth quarter. Legal & General Group Plc now owns 5,380,991 shares of the technology company's stock worth $34,115,000 after purchasing an additional 523,776 shares during the last quarter. Gendell Jeffrey L grew its holdings in Babcock by 6.2% in the fourth quarter. Gendell Jeffrey L now owns 5,046,068 shares of the technology company's stock worth $31,992,000 after purchasing an additional 293,245 shares during the period. Vanguard Group Inc. increased its position in Babcock by 54.3% during the 3rd quarter. Vanguard Group Inc. now owns 4,423,243 shares of the technology company's stock valued at $12,827,000 after buying an additional 1,556,692 shares in the last quarter. Marshall Wace LLP increased its holdings in shares of Babcock by 42.4% during the fourth quarter. Marshall Wace LLP now owns 3,371,134 shares of the technology company's stock valued at $21,373,000 after acquiring an additional 1,004,533 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership raised its holdings in Babcock by 777.3% in the first quarter. Arrowstreet Capital Limited Partnership now owns 2,974,324 shares of the technology company's stock worth $43,693,000 after buying an additional 2,635,304 shares during the last quarter. Institutional investors own 83.17% of the company's stock.

Babcock Price Performance

BW stock traded up $0.72 during mid-day trading on Friday, hitting $10.07. 2,315,689 shares of the stock were exchanged, compared to its average volume of 4,015,933. The stock has a market capitalization of $1.50 billion, a price-to-earnings ratio of -55.85 and a beta of 1.21. The business has a fifty day moving average price of $12.25 and a 200 day moving average price of $13.64. Babcock has a 12 month low of $1.40 and a 12 month high of $22.03.

Babcock (NYSE:BW - Get Free Report) last issued its quarterly earnings results on Monday, August 10th. The technology company reported $0.04 EPS for the quarter, beating analysts' consensus estimates of $0.02 by $0.02. Babcock had a negative net margin of 2.17% and a negative return on equity of 3.02%. The business had revenue of $319.69 million for the quarter, compared to analysts' expectations of $196.95 million. As a group, equities analysts forecast that Babcock will post 0.3 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on the company. Weiss Ratings upgraded Babcock from a "sell (d-)" rating to a "sell (d+)" rating in a research note on Tuesday. Wall Street Zen lowered shares of Babcock from a "buy" rating to a "hold" rating in a research report on Saturday, May 16th. Finally, Northland Securities set a $23.00 target price on Babcock in a research note on Tuesday, May 12th. Three research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $14.25.

Babcock Company Profile

Babcock & Wilcox Enterprises, Inc NYSE: BW is a specialized provider of energy and environmental technologies and services serving power generation and heavy industrial markets. The company designs, manufactures and maintains critical components and systems that support the safe and efficient operation of both fossil-fuel and renewable power facilities. Its core offerings include industrial and utility boilers, environmental control systems for emissions reduction, and aftermarket support services ranging from inspection and maintenance to spare parts management.

In addition to its boiler and emissions control portfolio, Babcock & Wilcox Enterprises delivers lifecycle solutions aimed at enhancing plant performance and compliance.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source