FuelCell Energy (NASDAQ:FCEL) Trading Down 7.6% – Should You Sell?

FuelCell Energy, Inc. (NASDAQ:FCEL) shares fell 7.6% on Monday . The company traded as low as $19.07 and last traded at $19.4240. 4,550,522 shares changed hands during trading, a decline of 31% from the average daily volume of 6,564,244 shares. The stock had previously closed at $21.03.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the company. Weiss Ratings upgraded FuelCell Energy from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Wednesday, May 20th. Wells Fargo & Company raised their target price on FuelCell Energy from $6.00 to $8.00 and gave the stock an “underweight” rating in a research report on Tuesday, June 16th. Canaccord Genuity Group boosted their price target on FuelCell Energy from $12.00 to $30.00 and gave the company a “buy” rating in a research note on Tuesday, June 9th. UBS Group upped their price target on shares of FuelCell Energy from $7.25 to $22.00 and gave the company a “neutral” rating in a research report on Friday, June 26th. Finally, TD Cowen reissued a “hold” rating and issued a $16.00 price objective (up from $9.00) on shares of FuelCell Energy in a report on Tuesday, June 9th. Three equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $22.00.

FuelCell Energy Trading Down 7.5%

The stock has a market capitalization of $1.32 billion, a PE ratio of -2.96 and a beta of 2.31. The stock’s 50 day moving average price is $21.41 and its 200-day moving average price is $12.66. The company has a quick ratio of 7.20, a current ratio of 8.59 and a debt-to-equity ratio of 0.18.

FuelCell Energy (NASDAQ:FCEL) last released its earnings results on Monday, June 8th. The energy company reported ($0.53) earnings per share for the quarter, missing analysts’ consensus estimates of $0.52 by ($1.05). FuelCell Energy had a negative net margin of 132.41% and a negative return on equity of 15.90%. The firm had revenue of $35.59 million for the quarter, compared to analysts’ expectations of $40.47 million. During the same quarter last year, the firm posted ($1.79) EPS. On average, sell-side analysts expect that FuelCell Energy, Inc. will post -1.84 earnings per share for the current fiscal year.

Insider Activity

In related news, EVP Shankar Achanta sold 2,500 shares of the company’s stock in a transaction on Monday, July 6th. The shares were sold at an average price of $28.71, for a total transaction of $71,775.00. Following the sale, the executive vice president owned 2,618 shares of the company’s stock, valued at $75,162.78. This represents a 48.85% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 5.46% of the stock is owned by company insiders.

Institutional Investors Weigh In On FuelCell Energy

Large investors have recently added to or reduced their stakes in the stock. Kestra Advisory Services LLC purchased a new position in shares of FuelCell Energy in the 4th quarter worth approximately $29,000. Bank of America Corp DE raised its holdings in FuelCell Energy by 31.9% during the 2nd quarter. Bank of America Corp DE now owns 18,351 shares of the energy company’s stock valued at $103,000 after buying an additional 4,435 shares during the period. Rhumbline Advisers lifted its position in FuelCell Energy by 21.1% in the first quarter. Rhumbline Advisers now owns 32,012 shares of the energy company’s stock worth $147,000 after buying an additional 5,585 shares during the last quarter. Caitong International Asset Management Co. Ltd boosted its stake in FuelCell Energy by 1,316.0% during the third quarter. Caitong International Asset Management Co. Ltd now owns 7,618 shares of the energy company’s stock worth $59,000 after buying an additional 7,080 shares during the period. Finally, Entropy Technologies LP boosted its stake in FuelCell Energy by 28.6% during the first quarter. Entropy Technologies LP now owns 37,519 shares of the energy company’s stock worth $245,000 after buying an additional 8,336 shares during the period. 42.78% of the stock is owned by institutional investors.

About FuelCell Energy

FuelCell Energy, Inc (NASDAQ: FCEL) is a publicly traded company that designs, manufactures and operates turnkey molten carbonate fuel cell power plants. These stationary, on-site energy solutions generate electricity and heat through an electrochemical process that combines natural gas or biogas with oxygen, producing power with lower greenhouse gas emissions than traditional fossil fuel-based generation. The company’s fuel cell technology is engineered for continuous, baseload operation and can be integrated into microgrid architectures and industrial power systems to provide reliable, around-the-clock energy.

The company’s core product suite, marketed under the SureSource brand, encompasses both power generation and integrated carbon capture or hydrogen production capabilities.