Powell Industries (NASDAQ:POWL) Stock Falls 6.6% – What’s Next?

Powell Industries, Inc. (NASDAQ:POWL)’s stock price dropped 6.6% on Wednesday. The stock traded as low as $192.51 and last traded at $191.2790. Approximately 84,076 shares changed hands during mid-day trading, a decline of 88% from the average daily volume of 717,263 shares. The stock had previously closed at $204.69.

Wall Street Analyst Weigh In

Several research firms recently weighed in on POWL. Glj Research upgraded shares of Powell Industries from a “hold” rating to a “strong-buy” rating in a report on Tuesday, July 14th. Cantor Fitzgerald reiterated a “neutral” rating and set a $235.00 target price on shares of Powell Industries in a research note on Thursday, October 1st. Finally, Weiss Ratings cut Powell Industries from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, August 19th. Two equities 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 stock. According to MarketBeat, Powell Industries has an average rating of “Moderate Buy” and a consensus target price of $215.42.

Powell Industries Trading Down 4.2%

The firm has a market capitalization of $7.14 billion, a price-to-earnings ratio of 37.70, a PEG ratio of 2.06 and a beta of 1.17. The business’s fifty day moving average price is $192.61 and its 200 day moving average price is $232.40.

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

Powell Industries Dividend Announcement

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

Insiders Place Their Bets

In other Powell Industries news, CEO Brett Cope sold 4,799 shares of the business’s stock in a transaction on Wednesday, September 30th. The shares were sold at an average price of $187.67, for a total value of $900,628.33. Following the transaction, the chief executive officer directly owned 507,934 shares of the company’s stock, valued at approximately $95,323,973.78. The trade was a 0.94% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, VP Marshall Jr sold 301 shares of Powell Industries stock in a transaction dated Wednesday, September 30th. The shares were sold at an average price of $187.67, for a total transaction of $56,488.67. Following the completion of the sale, the vice president directly owned 10,552 shares in the company, valued at approximately $1,980,293.84. The trade was a 2.77% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 9,540 shares of company stock worth $2,029,599. 2.20% of the stock is currently owned by insiders.

Institutional Trading of Powell Industries

Institutional investors have recently bought and sold shares of the company. USA Financial Formulas purchased a new stake in shares of Powell Industries in the first quarter valued at $43,000. Hollencrest Capital Management purchased a new stake in Powell Industries in the 1st quarter valued at about $54,000. MassMutual Private Wealth & Trust FSB lifted its holdings in shares of Powell Industries by 183.8% during the 2nd quarter. MassMutual Private Wealth & Trust FSB now owns 105 shares of the industrial products company’s stock worth $30,000 after acquiring an additional 68 shares during the period. Allworth Financial LP acquired a new position in Powell Industries during the second quarter worth approximately $33,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in shares of Powell Industries during the 2nd quarter valued at $34,000. 89.77% of the stock is currently owned by hedge funds and other institutional investors.

Powell Industries Company Profile

Powell Industries, Inc designs, manufactures and services equipment used to control, monitor and distribute electrical power. Its products include medium-voltage and low-voltage switchgear, motor control centers, electrical control panels, power-control rooms, bus systems and related protection and control equipment. The company also provides engineered electrical systems, field services, equipment modernization, installation support and commissioning services.

Powell serves customers in industries that require reliable and specialized electrical infrastructure, including oil and gas, petrochemical and chemical processing, utilities, mining, transportation, commercial facilities and renewable energy.