Babcock (NYSE:BW) Shares Gap Up – Should You Buy?

Babcock (NYSE:BW)’s stock price gapped up prior to trading on Monday . The stock had previously closed at $7.16, but opened at $7.68. Babcock shares last traded at $7.43, with a volume of 846,562 shares changing hands.

Analysts Set New Price Targets

Several analysts have issued reports on BW shares. Weiss Ratings raised shares of Babcock from a “sell (d-)” rating to a “sell (d+)” rating in a research report on Tuesday, August 11th. Wall Street Zen downgraded shares of Babcock from a “buy” rating to a “hold” rating in a research report on Sunday, August 23rd. Northland Securities set a $23.00 price objective on shares of Babcock in a research note on Tuesday, May 12th. Finally, Needham & Company LLC initiated coverage on shares of Babcock in a research note on Monday. They set a “buy” rating and a $20.00 price objective on the stock. Four 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. According to MarketBeat.com, Babcock currently has a consensus rating of “Hold” and a consensus target price of $15.40.

Babcock Stock Up 2.0%

The company has a debt-to-equity ratio of 4.21, a quick ratio of 1.33 and a current ratio of 1.45. The stock has a market cap of $1.09 billion, a P/E ratio of -40.44 and a beta of 1.22. The stock’s fifty day simple moving average is $10.52 and its 200-day simple moving average is $13.53.

Babcock (NYSE:BW) last issued its quarterly earnings results 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. The business had revenue of $319.69 million for the quarter, compared to the consensus estimate of $196.95 million. Babcock had a negative return on equity of 4.51% and a negative net margin of 2.17%. As a group, research analysts forecast that Babcock will post 0.27 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, Director Philip D. Moeller bought 5,000 shares of the company’s stock in a transaction dated Thursday, August 13th. The stock was bought at an average cost of $9.50 per share, for a total transaction of $47,500.00. Following the transaction, the director owned 240,809 shares of the company’s stock, valued at $2,287,685.50. This represents a 2.12% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 2.80% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Marshall Wace LLP raised its position in Babcock by 93.0% during the second quarter. Marshall Wace LLP now owns 395,945 shares of the technology company’s stock valued at $380,000 after purchasing an additional 190,814 shares in the last quarter. Nomura Holdings Inc. boosted its holdings in shares of Babcock by 58.2% in the 2nd quarter. Nomura Holdings Inc. now owns 127,382 shares of the technology company’s stock valued at $123,000 after purchasing an additional 46,884 shares in the last quarter. Vanguard Group Inc. increased its stake in shares of Babcock by 54.3% in the 3rd quarter. Vanguard Group Inc. now owns 4,423,243 shares of the technology company’s stock valued at $12,827,000 after purchasing an additional 1,556,692 shares during the last quarter. Jefferies Financial Group Inc. bought a new position in Babcock in the third quarter valued at about $74,000. Finally, Legal & General Group Plc bought a new stake in shares of Babcock during the 3rd quarter valued at approximately $14,086,000. 83.17% of the stock is owned by institutional investors.

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.