Babcock (NYSE:BW) Sees Large Volume Increase – Still a Buy?

Babcock (NYSE:BW) shares saw an uptick in trading volume on Wednesday. 5,258,476 shares were traded 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.

Latest Babcock News

These are some of the BW news items that stood out recently:

• Positive Sentiment: Major shareholder BRC Group Holdings bought 130,000 shares at an average of $4.98, a possible sign of confidence in Babcock. SEC ownership filing
• Neutral Sentiment: A Seeking Alpha analysis described the shares as having fallen substantially but said the investment outlook remains ambiguous, reflecting uncertainty around the stock’s prospects. Seeking Alpha analysis
• Negative Sentiment: Pomerantz issued an investor alert related to a class-action lawsuit, inviting investors who believe they suffered losses to contact the firm. The notice adds legal uncertainty but is not a finding of wrongdoing. Pomerantz investor alert

Analysts Set New Price Targets

A number of research firms have weighed in on BW. 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 dropped their price target on Babcock from $20.00 to $15.00 and set a “buy” rating for the company in a research report on Tuesday. Finally, Weiss Ratings restated a “sell (d+)” rating on shares of Babcock in a research report on Wednesday, November 4th. Three equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $19.00.

Babcock Trading Up 0.9%

The stock has a market capitalization of $710.52 million, a price-to-earnings ratio of -10.62 and a beta of 1.24. The company’s 50-day moving average is $5.51 and its 200-day moving average is $11.22. The company has a quick ratio of 1.33, a current ratio of 1.79 and a debt-to-equity ratio of 2.08.

Babcock (NYSE:BW) last issued its earnings results on Monday, August 10th. The technology company reported $0.04 EPS for the quarter, topping analysts’ consensus estimates of $0.02 by $0.02. The company had revenue of $319.72 million for the quarter, compared to the consensus estimate of $196.95 million. Babcock had a net margin of 4.11% and a negative return on equity of 36.52%. Research analysts anticipate that Babcock will post 0.79 earnings per share for the current fiscal year.

Insider Activity

In other news, major shareholder Brc Group Holdings, Inc. purchased 130,000 shares of the business’s stock in a transaction dated Wednesday, November 11th. The stock was acquired at an average price of $4.98 per share, for a total transaction of $647,400.00. Following the acquisition, the insider directly owned 103,810 shares of the company’s stock, valued at approximately $516,973.80. This represents a -496.37% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 2.80% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Integrated Wealth Concepts LLC acquired a new stake in Babcock during the second quarter worth $25,000. Royal Bank of Canada raised its position in Babcock by 57.3% in the first quarter. Royal Bank of Canada now owns 1,785 shares of the technology company’s stock valued at $26,000 after purchasing an additional 650 shares during the period. State of Alaska Department of Revenue acquired a new position in shares of Babcock in the 3rd quarter valued at $50,000. B. Riley Wealth Advisors Inc. lifted its stake in shares of Babcock by 62.0% in the 3rd quarter. B. Riley Wealth Advisors Inc. now owns 16,460 shares of the technology company’s stock valued at $96,000 after purchasing an additional 6,300 shares during the last quarter. Finally, Chicago Partners Investment Group LLC lifted its stake in shares of Babcock by 64.0% in the 3rd quarter. Chicago Partners Investment Group LLC now owns 24,202 shares of the technology company’s stock valued at $100,000 after purchasing an additional 9,448 shares during the last quarter. 83.17% of the stock is currently owned by institutional investors and hedge funds.

About Babcock

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.