FuelCell Energy (NASDAQ:FCEL) Shares Down 12% – Time to Sell?

Shares of FuelCell Energy, Inc. (NASDAQ:FCEL) fell 12% during trading on Tuesday . The stock traded as low as $26.70 and last traded at $26.1760. 3,190,073 shares changed hands during trading, a decline of 49% from the average daily volume of 6,253,293 shares. The stock had previously closed at $29.73.

FuelCell Energy News Roundup

Here are the key news stories impacting FuelCell Energy this week:

• Positive Sentiment: FuelCell Energy said proceeds from the upsized offering will help expand manufacturing capacity and fund growth initiatives, which could strengthen its long-term business outlook. FuelCell Energy Announces Upsize and Pricing of Offering of Common Stock
• Positive Sentiment: The company also unveiled a new Fit Energy data center partnership that could create up to 380 MW of potential projects, adding to its growth pipeline. FuelCell Energy Raises $225 Million And Lands Fit Energy Data Center Deal
• Neutral Sentiment: EVP Shankar Achanta disclosed a sale of 2,500 shares worth about $71,775, but the transaction appears small relative to the company’s overall market value and is not likely the main driver of the stock move. FuelCell Energy EVP Sells Stock
• Negative Sentiment: The stock’s decline is mainly tied to the discounted equity sale, which investors see as dilutive and a reason to take profits after FCEL’s strong recent rally. Why FuelCell Energy Stock Is Tumbling on Wednesday

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on the stock. Weiss Ratings raised shares of FuelCell Energy from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Wednesday, May 20th. B. Riley Financial raised shares of FuelCell Energy from a “neutral” rating to a “buy” rating and increased their target price for the company from $13.00 to $32.00 in a research report on Monday, June 29th. Wall Street Zen downgraded shares of FuelCell Energy from a “hold” rating to a “sell” rating in a research note on Saturday, June 13th. Wells Fargo & Company lifted their price target on shares of FuelCell Energy from $6.00 to $8.00 and gave the stock an “underweight” rating in a report on Tuesday, June 16th. Finally, KeyCorp reaffirmed a “sector weight” rating on shares of FuelCell Energy in a research report on Tuesday, June 9th. Three research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $22.00.

FuelCell Energy Stock Performance

The company has a market cap of $1.52 billion, a PE ratio of -3.43 and a beta of 2.31. The company has a current ratio of 8.59, a quick ratio of 7.20 and a debt-to-equity ratio of 0.18. The firm’s 50-day simple moving average is $21.00 and its two-hundred day simple moving average is $12.47.

FuelCell Energy (NASDAQ:FCEL) last posted its quarterly earnings results on Monday, June 8th. The energy company reported ($0.53) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.52 by ($1.05). The company had revenue of $35.59 million during the quarter, compared to analysts’ expectations of $40.47 million. FuelCell Energy had a negative return on equity of 15.90% and a negative net margin of 132.41%.During the same period in the prior year, the business posted ($1.79) EPS. As a group, research analysts anticipate 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 stock was sold at an average price of $28.71, for a total value of $71,775.00. Following the transaction, the executive vice president directly owned 2,618 shares of the company’s stock, valued at $75,162.78. This represents a 48.85% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 5.46% of the stock is currently owned by insiders.

Institutional Trading of FuelCell Energy

Several large investors have recently added to or reduced their stakes in FCEL. Zurcher Kantonalbank Zurich Cantonalbank raised its stake in shares of FuelCell Energy by 31,021.5% in the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 147,516 shares of the energy company’s stock worth $1,078,000 after purchasing an additional 147,042 shares during the last quarter. Northwestern Mutual Wealth Management Co. boosted its position in FuelCell Energy by 1,173,840.0% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 234,788 shares of the energy company’s stock valued at $1,716,000 after buying an additional 234,768 shares during the last quarter. Legal & General Group Plc purchased a new stake in FuelCell Energy in the fourth quarter valued at approximately $21,149,000. CenterBook Partners LP acquired a new position in FuelCell Energy in the 4th quarter worth approximately $9,348,000. Finally, Virtu Financial LLC increased its holdings in FuelCell Energy by 75.7% in the 4th quarter. Virtu Financial LLC now owns 85,655 shares of the energy company’s stock worth $626,000 after buying an additional 36,910 shares during the period. Hedge funds and other institutional investors own 42.78% of the company’s stock.

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.