Babcock (NYSE:BW) Sees Large Volume Increase – Here’s What Happened

by · The Markets Daily

Shares of Babcock (NYSE:BW – Get Free Report) saw unusually-high trading volume on Wednesday. Approximately 5,258,476 shares traded hands during mid-day trading, an increase of 22% from the average daily volume of 4,315,083 shares. The stock last traded at $5.1350 and had previously closed at $4.48.

Key Headlines Impacting Babcock

These are some of the BW headlines that stood out recently:

  • Positive Sentiment: Q3 results topped revenue expectations: Revenue rose 109% year over year to $290.8 million, ahead of the cited $226.5 million consensus. Adjusted EBITDA increased to $17.7 million from $9.4 million a year earlier, while bookings more than doubled to $228 million. The company also reported $0.03 EPS, in line with consensus. Babcock & Wilcox Q3 results
  • Negative Sentiment: Needham lowered its price target: The firm reduced its target to $15 from $20, although it maintained a Buy rating. Needham analyst ratings
  • Negative Sentiment: Litigation-related uncertainty remains: Pomerantz issued an investor notice concerning a class-action lawsuit and invited investors with losses to contact the firm. The notice may add uncertainty, but is not itself a finding of wrongdoing. Investor notice regarding class-action lawsuit

Analyst Ratings Changes

BW has been the subject of a number of analyst reports. Weiss Ratings restated a “sell (d+)” rating on shares of Babcock in a research note on Wednesday, November 4th. Wall Street Zen cut shares of Babcock from a “buy” rating to a “hold” rating in a report on Sunday, August 23rd. Finally, Needham & Company LLC cut their price target on shares of Babcock from $20.00 to $15.00 and set a “buy” rating on the stock in a report on Tuesday. Three research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Babcock presently has a consensus rating of “Hold” and a consensus target price of $15.75.

Get Our Latest Research Report on BW

Babcock Stock Performance

The company has a quick ratio of 1.33, a current ratio of 1.45 and a debt-to-equity ratio of 4.21. The stock has a market capitalization of $744.08 million, a P/E ratio of -10.88 and a beta of 1.24. The business has a fifty day moving average price of $5.60 and a 200-day moving average price of $11.27.

Babcock (NYSE:BW – Get Free Report) last issued its earnings results on Monday, August 10th. The technology company reported $0.04 earnings per share for the quarter, topping analysts’ consensus estimates of $0.02 by $0.02. The business had revenue of $319.72 million during the quarter, compared to analyst estimates of $196.95 million. Babcock had a negative return on equity of 15.21% and a net margin of 4.11%. On average, sell-side analysts expect that Babcock will post 0.27 EPS for the current year.

Insider Activity

In related news, Director Philip Moeller purchased 5,000 shares of Babcock stock in a transaction dated Thursday, August 13th. The stock was purchased at an average cost of $9.50 per share, for a total transaction of $47,500.00. Following the completion of the purchase, the director directly owned 240,809 shares of the company’s stock, valued at $2,287,685.50. The trade was a 2.12% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through the SEC website. 2.80% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Babcock

A number of hedge funds have recently added to or reduced their stakes in the stock. Arrowstreet Capital Limited Partnership boosted its stake in Babcock by 777.3% during 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 period. Wellington Management Group LLP purchased a new stake in Babcock in the 2nd quarter worth about $18,260,000. Bank of America Corp DE raised its position in Babcock by 1,743.7% in the 1st quarter. Bank of America Corp DE now owns 1,096,502 shares of the technology company’s stock worth $16,108,000 after purchasing an additional 1,037,028 shares during the period. Cooper Creek Partners Management LLC purchased a new stake in Babcock in the 1st quarter worth about $15,205,000. Finally, Equitec Proprietary Markets LLC acquired a new position in Babcock during the 2nd quarter valued at approximately $9,831,000. 83.17% of the stock is currently owned by hedge funds and other institutional investors.

Babcock Company Profile

(Get Free Report)

Babcock & Wilcox Enterprises, Inc. is an energy and environmental technology company serving power, industrial and municipal customers. Its offerings include steam-generation equipment, emissions-control systems and related engineering, construction, maintenance and aftermarket services. The company also develops technologies for renewable and waste-to-energy applications, including systems that use biomass and municipal solid waste to produce energy. Its environmental technologies help customers manage emissions and other byproducts from energy and industrial processes.

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