Powell Industries (NASDAQ:POWL) Stock Price Down 10.9% – What’s Next?

Shares of Powell Industries, Inc. (NASDAQ:POWL) fell 10.9% on Thursday. The stock traded as low as $153.79 and last traded at $151.6920. 145,140 shares changed hands during mid-day trading, a decline of 80% from the average daily volume of 719,609 shares. The stock had previously closed at $170.32.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on POWL. Weiss Ratings cut Powell Industries from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, August 19th. JPMorgan Chase & Co. decreased their price target on Powell Industries from $300.00 to $250.00 and set an “overweight” rating on the stock in a research note on Tuesday, October 13th. Cantor Fitzgerald reaffirmed a “neutral” rating and issued a $235.00 price target on shares of Powell Industries in a research note on Thursday, October 1st. Finally, Glj Research upgraded Powell Industries from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, July 14th. Two equities research analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat.com, Powell Industries currently has an average rating of “Moderate Buy” and an average target price of $187.92.

Powell Industries Trading Down 11.5%

The firm has a market cap of $5.49 billion, a P/E ratio of 28.93, a price-to-earnings-growth ratio of 1.71 and a beta of 1.17. The company’s fifty day moving average price is $185.96 and its two-hundred day moving average price is $232.22.

Powell Industries (NASDAQ:POWL) last announced its quarterly earnings results on Monday, August 3rd. The industrial products company reported $1.42 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.49 by ($0.07). Powell Industries had a net margin of 16.49% and a return on equity of 27.51%. The firm had revenue of $311.74 million for the quarter, compared to the consensus estimate of $316.70 million. During the same period in the prior year, the business earned $3.96 earnings per share. The company’s revenue for the quarter was up 8.9% on a year-over-year basis. On average, analysts predict that Powell Industries, Inc. will post 5.36 EPS for the current fiscal year.

Powell Industries Announces Dividend

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

Insiders Place Their Bets

In other news, CEO Brett Cope sold 4,799 shares of the firm’s stock in a transaction that occurred on Wednesday, September 30th. The shares were sold at an average price of $187.67, for a total transaction of $900,628.33. Following the completion of the sale, the chief executive officer owned 507,934 shares of the company’s stock, valued at approximately $95,323,973.78. This trade represents a 0.94% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Ping Ni sold 700 shares of Powell Industries stock in a transaction that occurred on Friday, October 16th. The shares were sold at an average price of $167.14, for a total transaction of $116,998.00. Following the completion of the transaction, the insider owned 5,339 shares of the company’s stock, valued at $892,360.46. This trade represents a 11.59% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 5,800 shares of company stock valued at $1,074,115. 2.20% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Powell Industries

A number of large investors have recently bought and sold shares of the business. Root Financial Partners LLC acquired a new stake in Powell Industries during the 3rd quarter valued at $26,000. MassMutual Private Wealth & Trust FSB raised its position in Powell Industries by 183.8% in the 2nd quarter. MassMutual Private Wealth & Trust FSB now owns 105 shares of the industrial products company’s stock valued at $30,000 after purchasing an additional 68 shares during the last quarter. Allworth Financial LP bought a new position in Powell Industries in the 2nd quarter valued at $33,000. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in Powell Industries in the 2nd quarter valued at $34,000. Finally, Anchor Investment Management LLC boosted its stake in Powell Industries by 92.9% in the second quarter. Anchor Investment Management LLC now owns 135 shares of the industrial products company’s stock worth $39,000 after purchasing an additional 65 shares in the last quarter. 89.77% of the stock is currently owned by institutional investors.

About Powell Industries

Powell Industries, Inc is a Houston-based manufacturer of custom-engineered electrical equipment and systems used to control, distribute and monitor electrical power. The company serves industrial and utility customers that require equipment designed for demanding operating environments, including facilities with high-voltage, hazardous or highly regulated applications.

Its product portfolio includes medium- and high-voltage metal-clad switchgear, motor control centers, electrical houses and enclosures, control panels, switchboards, bus systems and related protection and control equipment.