Wall Street Zen Downgrades Broadwind Energy (NASDAQ:BWEN) to Sell

Key Points

• Wall Street Zen downgraded Broadwind Energy from a "hold" to a "sell" rating in a recent research report, indicating a shift in market sentiment towards the stock.
• Despite the downgrade, Broadwind Energy's shares are considered to have a Moderate Buy average rating and an average target price of $4.50 according to MarketBeat.com.
• The company has initiated a $3.00 million share buyback plan, typically seen as a sign that management believes the stock is undervalued.

Wall Street Zen lowered shares of Broadwind Energy (NASDAQ:BWEN - Free Report) from a hold rating to a sell rating in a report issued on Saturday morning.

Separately, Zacks Research raised shares of Broadwind Energy to a "hold" rating in a report on Tuesday, August 12th. Two research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, Broadwind Energy presently has an average rating of "Moderate Buy" and a consensus price target of $4.50.

Broadwind Energy Stock Up 3.3%

NASDAQ BWEN traded up $0.07 on Friday, hitting $2.20. The stock had a trading volume of 125,189 shares, compared to its average volume of 158,540. The business's fifty day moving average price is $2.30 and its 200 day moving average price is $1.87. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.53 and a quick ratio of 0.52. Broadwind Energy has a 52-week low of $1.41 and a 52-week high of $3.03. The stock has a market cap of $50.69 million, a price-to-earnings ratio of -22.00 and a beta of 1.56.

Broadwind Energy (NASDAQ:BWEN - Get Free Report) last released its quarterly earnings results on Tuesday, August 12th. The industrial products company reported ($0.04) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.02 by ($0.06). The firm had revenue of $39.24 million during the quarter, compared to analysts' expectations of $37.65 million. Broadwind Energy had a negative return on equity of 3.71% and a negative net margin of 1.52%. Equities research analysts anticipate that Broadwind Energy will post 0.01 earnings per share for the current year.

Broadwind Energy declared that its board has initiated a share repurchase plan on Wednesday, September 10th that allows the company to buyback $3.00 million in shares. This buyback authorization allows the industrial products company to repurchase up to 6.1% of its stock through open market purchases. Stock buyback plans are typically a sign that the company's board of directors believes its stock is undervalued.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Squarepoint Ops LLC acquired a new position in shares of Broadwind Energy in the fourth quarter worth about $76,000. AMH Equity Ltd acquired a new position in shares of Broadwind Energy in the first quarter worth about $209,000. Grace & White Inc. NY raised its position in shares of Broadwind Energy by 7.3% in the first quarter. Grace & White Inc. NY now owns 2,125,587 shares of the industrial products company's stock worth $3,082,000 after acquiring an additional 144,988 shares during the period. US Bancorp DE raised its position in shares of Broadwind Energy by 11.9% in the first quarter. US Bancorp DE now owns 160,128 shares of the industrial products company's stock worth $232,000 after acquiring an additional 16,998 shares during the period. Finally, Bridgeway Capital Management LLC raised its position in shares of Broadwind Energy by 5.0% in the second quarter. Bridgeway Capital Management LLC now owns 102,221 shares of the industrial products company's stock worth $185,000 after acquiring an additional 4,903 shares during the period. Institutional investors and hedge funds own 33.27% of the company's stock.

About Broadwind Energy

Broadwind, Inc manufactures and sells structures, equipment, and components for clean tech and other specialized applications primarily in the United States. It operates through three segments: Heavy Fabrications, Gearing, and Industrial Solutions. The Heavy Fabrications segment provides fabrications to various industrial markets.