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

Babcock (NYSE:BW)’s share price hit a new 52-week low during 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.

Analysts Set New Price Targets

Several analysts have weighed in on BW shares. Needham & Company LLC began coverage on shares of Babcock in a research report on Monday, August 31st. They set a “buy” rating and a $20.00 target price on the stock. Weiss Ratings raised shares of Babcock from a “sell (d-)” rating to a “sell (d+)” rating in a report on Tuesday, August 11th. Finally, Wall Street Zen downgraded shares of Babcock from a “buy” rating to a “hold” rating in a research note on Sunday, August 23rd. Four investment 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’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $15.40.

Babcock Price Performance

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

Babcock (NYSE:BW) last issued its quarterly earnings results on Monday, August 10th. The technology company reported $0.04 earnings per share for the quarter, topping the consensus estimate of $0.02 by $0.02. Babcock had a negative net margin of 2.17% and a negative return on equity of 4.51%. The company had revenue of $319.72 million for the quarter, compared to the consensus estimate of $196.95 million. On average, analysts expect that Babcock will post 0.27 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Philip Moeller acquired 5,000 shares of Babcock stock in a transaction on Thursday, August 13th. The stock was acquired at an average price of $9.50 per share, for a total transaction of $47,500.00. Following the purchase, the director owned 240,809 shares of the company’s stock, valued at approximately $2,287,685.50. This represents a 2.12% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 2.80% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the stock. Arrowstreet Capital Limited Partnership boosted its position in Babcock by 777.3% during the first quarter. Arrowstreet Capital Limited Partnership now owns 2,974,324 shares of the technology company’s stock worth $43,693,000 after purchasing an additional 2,635,304 shares in the last quarter. Situational Awareness LP raised its stake in shares of Babcock by 49.7% during the 2nd quarter. Situational Awareness LP now owns 2,027,451 shares of the technology company’s stock worth $28,587,000 after buying an additional 673,551 shares during the period. Wellington Management Group LLP purchased a new position in shares of Babcock during the 2nd quarter valued at approximately $18,260,000. Bank of America Corp DE lifted its position in shares of Babcock by 1,743.7% during the 1st quarter. Bank of America Corp DE now owns 1,096,502 shares of the technology company’s stock valued at $16,108,000 after buying an additional 1,037,028 shares in the last quarter. Finally, Cooper Creek Partners Management LLC purchased a new stake in Babcock in the 1st quarter worth $15,205,000. 83.17% of the stock is owned by institutional investors and hedge funds.

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.