Babcock (NYSE:BW) Sets New 1-Year Low – Should You Sell?

Babcock (NYSE:BW) hit a new 52-week low during mid-day trading on Wednesday. The stock traded as low as $3.98 and last traded at $3.9050, with a volume of 867,467 shares changing hands. The stock had previously closed at $4.23.

Wall Street Analyst Weigh In

BW has been the topic of a number of research reports. Wall Street Zen lowered shares of Babcock from a “buy” rating to a “hold” rating in a research note on Sunday, August 23rd. Needham & Company LLC began coverage on Babcock in a research note on Monday, August 31st. They set a “buy” rating and a $20.00 price objective for the company. Finally, Weiss Ratings raised Babcock from a “sell (d-)” rating to a “sell (d+)” rating in a report on Tuesday, August 11th. Four investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $15.40.

Babcock Price Performance

The stock’s fifty day moving average price is $5.99 and its 200-day moving average price is $11.39. The firm has a market cap of $560.83 million, a PE ratio of -20.92 and a beta of 1.24. The company has a debt-to-equity ratio of 4.21, a current ratio of 1.45 and a quick ratio of 1.33.

Babcock (NYSE:BW) last posted its quarterly 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 firm had revenue of $319.72 million for the quarter, compared to analyst estimates of $196.95 million. Babcock had a negative net margin of 2.17% and a negative return on equity of 4.51%. As a group, equities analysts expect that Babcock will post 0.27 EPS for the current fiscal year.

Insider Activity

In related news, Director Philip Moeller purchased 5,000 shares of the business’s stock in a transaction that occurred on Thursday, August 13th. The stock was purchased at an average price of $9.50 per share, with a total value of $47,500.00. Following the completion of the acquisition, the director owned 240,809 shares in the company, valued at $2,287,685.50. This trade represents a 2.12% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this link. 2.80% of the stock is owned by company insiders.

Institutional Trading of Babcock

Large investors have recently added to or reduced their stakes in the stock. Arrowstreet Capital Limited Partnership increased its stake in shares of Babcock by 777.3% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,974,324 shares of the technology company’s stock worth $43,693,000 after acquiring an additional 2,635,304 shares during the last quarter. Situational Awareness LP increased its position in Babcock by 49.7% during the second quarter. Situational Awareness LP now owns 2,027,451 shares of the technology company’s stock worth $28,587,000 after purchasing an additional 673,551 shares during the last quarter. Wellington Management Group LLP acquired a new stake in Babcock during the second quarter worth about $18,260,000. Bank of America Corp DE raised its stake in Babcock by 1,743.7% during the first 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. Finally, Cooper Creek Partners Management LLC acquired a new position in Babcock in the 1st quarter valued at about $15,205,000. 83.17% of the stock is currently owned by hedge funds and other institutional investors.

Babcock Company Profile

Babcock & Wilcox Enterprises, Inc is an energy and environmental technology company that provides equipment, systems and services for power generation, industrial operations and waste management. Its offerings include steam-generating technologies, boilers, emissions-control systems, construction and maintenance services, and related engineering support.

The company also develops technologies for renewable energy and waste conversion, including solutions designed to transform waste and biomass into useful heat and power.