Powell Industries (NASDAQ:POWL) Stock Price Down 8% – Here’s Why

Powell Industries, Inc. (NASDAQ:POWL)’s share price was down 8% on Monday . The stock traded as low as $214.00 and last traded at $213.6640. Approximately 201,083 shares were traded during mid-day trading, a decline of 73% from the average session volume of 757,947 shares. The stock had previously closed at $232.21.

Analyst Upgrades and Downgrades

POWL has been the topic of several recent research reports. Zacks Research cut shares of Powell Industries from a “strong-buy” rating to a “hold” rating in a report on Monday, May 11th. JPMorgan Chase & Co. boosted their price target on Powell Industries from $310.00 to $360.00 and gave the company an “overweight” rating in a research note on Wednesday, May 6th. Glj Research raised Powell Industries from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, July 14th. Cantor Fitzgerald raised their price objective on Powell Industries from $160.00 to $320.00 and gave the stock a “neutral” rating in a research note on Monday, May 11th. Finally, Weiss Ratings cut Powell Industries from a “buy (b)” rating to a “buy (b-)” rating in a report on Thursday, July 16th. Two analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the company currently has an average rating of “Buy” and an average price target of $236.67.

Powell Industries Price Performance

The firm has a market cap of $7.32 billion, a P/E ratio of 39.33, a PEG ratio of 2.86 and a beta of 1.13. The company’s 50-day moving average is $268.33 and its two-hundred day moving average is $222.44.

Powell Industries (NASDAQ:POWL) last released its earnings results on Monday, May 4th. The industrial products company reported $1.25 EPS for the quarter, missing the consensus estimate of $1.34 by ($0.09). The firm had revenue of $296.62 million during the quarter, compared to the consensus estimate of $298.12 million. Powell Industries had a net margin of 16.51% and a return on equity of 28.61%. Powell Industries’s quarterly revenue was up 6.5% compared to the same quarter last year. During the same period in the prior year, the business earned $3.81 earnings per share. On average, analysts expect that Powell Industries, Inc. will post 5.47 EPS for the current fiscal year.

Powell Industries Cuts Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, June 17th. Investors of record on Wednesday, May 20th were given a dividend of $0.09 per share. The ex-dividend date was Wednesday, May 20th. This represents a $0.36 annualized dividend and a dividend yield of 0.2%. Powell Industries’s dividend payout ratio (DPR) is currently 7.05%.

Insider Buying and Selling at Powell Industries

In other Powell Industries news, VP William Marshall Mauney, Jr. sold 2,500 shares of the company’s stock in a transaction on Monday, May 11th. The stock was sold at an average price of $323.69, for a total transaction of $809,225.00. Following the completion of the sale, the vice president directly owned 10,853 shares in the company, valued at $3,513,007.57. This represents a 18.72% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Brett Alan Cope sold 4,440 shares of Powell Industries stock in a transaction on Thursday, July 9th. The shares were sold at an average price of $241.55, for a total value of $1,072,482.00. Following the completion of the transaction, the chief executive officer owned 517,233 shares in the company, valued at approximately $124,937,631.15. The trade was a 0.85% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 55,088 shares of company stock valued at $16,070,066. 2.20% of the stock is currently owned by insiders.

Institutional Trading of Powell Industries

Several large investors have recently bought and sold shares of the business. Northwestern Mutual Wealth Management Co. raised its stake in Powell Industries by 1,230,312.7% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 775,160 shares of the industrial products company’s stock worth $247,106,000 after acquiring an additional 775,097 shares in the last quarter. Tema ETFs LLC boosted its stake in shares of Powell Industries by 217.3% in the 2nd quarter. Tema ETFs LLC now owns 268,692 shares of the industrial products company’s stock valued at $76,943,000 after purchasing an additional 184,010 shares in the last quarter. Summit Partners Public Asset Management LLC acquired a new stake in shares of Powell Industries in the 3rd quarter valued at approximately $43,515,000. Rock Creek Group LP grew its holdings in shares of Powell Industries by 1,900.0% during the 4th quarter. Rock Creek Group LP now owns 150,000 shares of the industrial products company’s stock valued at $47,817,000 after purchasing an additional 142,500 shares during the last quarter. Finally, Janus Henderson Group PLC grew its holdings in shares of Powell Industries by 55.1% during the 1st quarter. Janus Henderson Group PLC now owns 224,966 shares of the industrial products company’s stock valued at $121,643,000 after purchasing an additional 79,932 shares during the last quarter. 89.77% of the stock is owned by institutional investors and hedge funds.

About Powell Industries

Powell Industries, Inc is an industrial electrical engineering company specializing in the design, manufacture and integration of customized power control and distribution solutions. The firm’s offerings range from medium‐voltage switchgear and power control centers to bus duct, motor control centers and specialty transformers. Powell also provides automation systems, protective relaying, metering, supervisory control and data acquisition (SCADA) platforms, and turnkey engineering services to help clients manage critical power infrastructure.

Serving the oil and gas, petrochemical, refining, utility, mining and industrial sectors, Powell’s products are engineered to meet demanding performance, safety and reliability requirements.