On May 13, 2023, Babcock & Wilcox Enterprises opened with a stock price of $5.38, according to market data. The company’s shares fluctuated over the past year, ranging from a low of $3.89 to a high of $8.66 with a market cap of $477.42 million. It offers energy and environmental technologies for power generation systems that use fossil fuels as well as renewable energy sources.
Despite various changes in hedge funds’ investments in the company, StockNews.com recently gave Babcock & Wilcox Enterprises a “sell” rating on Thursday, March 16th, citing concerns about their quarterly earnings report which missed analysts’ consensus estimate by ($0.04) at $0.02 EPS for the quarter ending on March 15th.
The firm’s PE ratio stands at -12.51, indicating negative earnings, while its beta is up at 1.86. Meanwhile, the company’s simple moving averages stand at $5.85 over 50 days and $5.74 over 200 days.
Among institutional investors who own more than three-quarters of BW’s outstanding stock are Price T Rowe Associates Inc., XTX Topco Ltd., and Evolution Capital Management LLC.
In conclusion, Babcock & Wilcox Enterprises continues to offer cutting-edge technology that allows power generation systems to operate efficiently and sustainably in an increasingly volatile market. Despite recent concerns about revenue growth projections amid growing investor skepticism coupled with its negative earnings per share ratio and “sell” rating by some analysts faulting quarterly earnings report- investors will be watching closely when they give an update during their next earnings call slated for August of this year to see if the company can turn things around and make themselves attractive once again to more investors seeking to boost their portfolios through smart select investment options especially within the energy sector with renewable energy taking center stage especially within the next decade owing to climate change wreaking havoc with the environment.
Mixed News for Babcock & Wilcox Enterprises, Inc. as COO and CFO Buy Shares While Q2 Earnings Estimates are Lowered
Babcock & Wilcox Enterprises, Inc. (NYSE:BW) has received some mixed news lately. While the COO and CFO bought shares of the stock in March, a recent research note from B. Riley has lowered their Q2 2023 earnings estimates for the company. The technology company is now expected to earn only $0.01 per share, down from the prior estimate of $0.02.
This news comes after Babcock & Wilcox Enterprises announced an agreement with a European energy company to install a waste-to-energy plant in Spain earlier this year. The plant will process up to 350,000 tons of municipal solid waste each year, turning it into green energy.
Despite this positive development, it seems that investors may be feeling uneasy about Babcock & Wilcox Enterprises’ prospects in the short-term. The slight dip in earnings estimates could be seen as cause for concern, especially as analysts expect full-year earnings to come in at only $0.08 per share.
That being said, the recent insider purchases by the COO and CFO indicate that there may still be confidence within the company’s leadership. In fact, insiders have acquired a total of 35,000 shares of company stock worth nearly $188,000 over the past three months.
Overall, Babcock & Wilcox Enterprises appears to be navigating a difficult market environment cautiously but successfully. While there may be some uncertainty in the near future due to revised earnings estimates, there are promising signs of continued growth in the long-term as well. Investors may want to keep an eye on this innovative technology company going forward as it seeks to further tap into new markets and expand its product offerings.
