Wall Street Zen Downgrades Babcock (NYSE:BW) to Hold

Key Points

• Wall Street Zen downgraded Babcock from “Buy” to “Hold.” The broader analyst consensus is also “Hold,” with three Buy ratings, two Hold ratings, one Sell rating, and an average price target of $14.25.
• Babcock shares opened at $8.31, well below their 52-week high of $22.03. The company has a $1.24 billion market capitalization and carries a high debt-to-equity ratio of 4.21.
• The company exceeded quarterly expectations, reporting $0.04 in EPS versus a $0.02 estimate and $319.69 million in revenue versus a $196.95 million consensus forecast. Director Philip D. Moeller also purchased 5,000 shares at $9.50 each.

Babcock (NYSE:BW - Get Free Report) was downgraded by analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report released on Sunday.

Several other equities analysts have also commented on BW. Northland Securities set a $23.00 price objective on shares of Babcock in a report on Tuesday, May 12th. Weiss Ratings upgraded Babcock from a "sell (d-)" rating to a "sell (d+)" rating in a research report on Tuesday, August 11th. Three analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $14.25.

Babcock Price Performance

NYSE:BW opened at $8.31 on Friday. Babcock has a 52 week low of $1.62 and a 52 week high of $22.03. The stock's fifty day moving average is $11.46 and its two-hundred day moving average is $13.58. The company has a market capitalization of $1.24 billion, a P/E ratio of -46.16 and a beta of 1.21. The company has a quick ratio of 1.33, a current ratio of 1.45 and a debt-to-equity ratio of 4.21.

Babcock (NYSE:BW - Get Free Report) last issued its quarterly earnings data on Monday, August 10th. The technology company reported $0.04 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.02 by $0.02. Babcock had a negative return on equity of 4.51% and a negative net margin of 2.17%.The firm had revenue of $319.69 million during the quarter, compared to the consensus estimate of $196.95 million. Equities analysts expect that Babcock will post 0.3 EPS for the current year.

Insider Activity at Babcock

In related news, Director Philip D. Moeller acquired 5,000 shares of the business's stock in a transaction dated Thursday, August 13th. The shares were acquired at an average price of $9.50 per share, with a total value of $47,500.00. Following the completion of the transaction, the director owned 240,809 shares of the company's stock, valued at $2,287,685.50. The trade was a 2.12% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 2.80% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Babcock

A number of hedge funds have recently bought and sold shares of BW. Royal Bank of Canada grew its position in shares of Babcock by 57.3% during the first quarter. Royal Bank of Canada now owns 1,785 shares of the technology company's stock worth $26,000 after buying an additional 650 shares in the last quarter. Rockefeller Capital Management L.P. acquired a new position in Babcock during the 4th quarter worth approximately $25,000. Huntington National Bank increased its position in shares of Babcock by 400,000.0% in the 4th quarter. Huntington National Bank now owns 4,001 shares of the technology company's stock valued at $25,000 after purchasing an additional 4,000 shares during the last quarter. State of Wyoming lifted its position in shares of Babcock by 88.7% during the 4th quarter. State of Wyoming now owns 10,499 shares of the technology company's stock worth $67,000 after purchasing an additional 4,936 shares during the last quarter. Finally, Centiva Capital LP acquired a new position in shares of Babcock during the third quarter worth $31,000. Institutional investors and hedge funds own 83.17% of the company's stock.

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.

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