Powell Industries (NASDAQ:POWL) Shares Gap Up – Still a Buy?

Shares of Powell Industries, Inc. (NASDAQ:POWL) gapped up before the market opened on Wednesday. The stock had previously closed at $161.36, but opened at $168.60. Powell Industries shares last traded at $163.9080, with a volume of 34,130 shares trading hands.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the stock. Glj Research raised shares of Powell Industries from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, July 14th. Cantor Fitzgerald restated a “neutral” rating and set a $235.00 target price on shares of Powell Industries in a research report on Thursday, October 1st. JPMorgan Chase & Co. lowered their price target on shares of Powell Industries from $300.00 to $250.00 and set an “overweight” rating for the company in a report on Tuesday, October 13th. Finally, Weiss Ratings lowered Powell Industries from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, August 19th. Two research analysts have rated the stock with a Strong Buy rating, two have given a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $187.92.

Powell Industries Stock Performance

The company has a market cap of $6.14 billion, a PE ratio of 32.34, a PEG ratio of 1.75 and a beta of 1.17. The stock has a fifty day moving average of $180.71 and a 200-day moving average of $211.82.

Powell Industries (NASDAQ:POWL) last posted its quarterly earnings results on Monday, August 3rd. The industrial products company reported $1.42 EPS for the quarter, missing the consensus estimate of $1.49 by ($0.07). Powell Industries had a return on equity of 27.51% and a net margin of 16.49%. The company had revenue of $311.74 million during the quarter, compared to analysts’ expectations of $316.70 million. During the same period in the prior year, the business earned $3.96 EPS. The company’s quarterly revenue was up 8.9% on a year-over-year basis. As a group, equities analysts anticipate that Powell Industries, Inc. will post 5.36 EPS for the current fiscal year.

Powell Industries Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, September 16th. Stockholders of record on Wednesday, August 19th were given a dividend of $0.09 per share. The ex-dividend date of this dividend was Wednesday, August 19th. This represents a $0.36 dividend on an annualized basis and a dividend yield of 0.2%. Powell Industries’s dividend payout ratio (DPR) is 6.91%.

Insider Activity

In related news, CEO Brett Cope sold 4,799 shares of the stock in a transaction that occurred on Wednesday, September 30th. The stock was sold at an average price of $187.67, for a total value of $900,628.33. Following the transaction, the chief executive officer owned 507,934 shares of the company’s stock, valued at $95,323,973.78. This represents a 0.94% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, VP William Marshall Mauney, Jr. sold 301 shares of the stock in a transaction that occurred on Wednesday, September 30th. The stock was sold at an average price of $187.67, for a total value of $56,488.67. Following the completion of the transaction, the vice president directly owned 10,552 shares in the company, valued at approximately $1,980,293.84. This trade represents a 2.77% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 5,800 shares of company stock valued at $1,074,115. Corporate insiders own 2.20% of the company’s stock.

Institutional Investors Weigh In On Powell Industries

Several hedge funds have recently made changes to their positions in the company. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in shares of Powell Industries by 229.2% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 81,723 shares of the industrial products company’s stock valued at $23,402,000 after buying an additional 56,901 shares during the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in shares of Powell Industries during the 2nd quarter worth approximately $2,623,000. Tidal Investments LLC raised its stake in shares of Powell Industries by 222.3% during the 2nd quarter. Tidal Investments LLC now owns 282,483 shares of the industrial products company’s stock worth $80,892,000 after acquiring an additional 194,840 shares in the last quarter. Private Advisory Group LLC bought a new position in shares of Powell Industries during the 2nd quarter worth approximately $14,158,000. Finally, NewEdge Advisors LLC lifted its position in Powell Industries by 146.0% during the second quarter. NewEdge Advisors LLC now owns 26,941 shares of the industrial products company’s stock valued at $7,715,000 after acquiring an additional 15,990 shares during the last quarter. 89.77% of the stock is currently owned by hedge funds and other institutional investors.

Powell Industries Company Profile

Powell Industries, Inc is a Houston-based manufacturer of custom-engineered electrical equipment and systems used to control, distribute and monitor electrical power. The company serves industrial and utility customers that require equipment designed for demanding operating environments, including facilities with high-voltage, hazardous or highly regulated applications.

Its product portfolio includes medium- and high-voltage metal-clad switchgear, motor control centers, electrical houses and enclosures, control panels, switchboards, bus systems and related protection and control equipment.