FuelCell Energy (NASDAQ:FCEL) Shares Gap Down – Should You Sell?

FuelCell Energy, Inc. (NASDAQ:FCEL)’s stock price gapped down before the market opened on Wednesday . The stock had previously closed at $25.96, but opened at $21.18. FuelCell Energy shares last traded at $23.2690, with a volume of 6,656,143 shares.

More FuelCell Energy News

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

• Positive Sentiment: The offering provides FuelCell Energy with about $225 million in gross proceeds to support manufacturing-capacity expansion and working capital, which could strengthen its long-term growth plan. FuelCell Energy Announces Upsize and Pricing of Offering of Common Stock
• Neutral Sentiment: Analysts and commentary have continued to highlight FuelCell Energy’s AI data-center pipeline, modular fuel-cell systems, and manufacturing expansion as reasons the growth story remains intact despite the selloff. FCEL Quadruples in 3 Months: Why It May Still Be Worth Buying
• Negative Sentiment: The upsized share sale increases dilution risk for existing holders, and the discounted pricing versus the stock’s recent trading level has intensified selling pressure. FuelCell Energy Announces Upsize and Pricing of Offering of Common Stock
• Negative Sentiment: Investors also appear to be taking profits after FCEL’s strong recent run, with the new financing news interrupting momentum and triggering a sharp reset in the stock. FuelCell Energy Slides as Upsized Equity Offering Fuels Dilution Concerns

Analysts Set New Price Targets

A number of equities analysts have issued reports on FCEL shares. KeyCorp reaffirmed a “sector weight” rating on shares of FuelCell Energy in a research note on Tuesday, June 9th. Wall Street Zen downgraded FuelCell Energy from a “hold” rating to a “sell” rating in a research note on Saturday, June 13th. Wells Fargo & Company raised their price target on FuelCell Energy from $6.00 to $8.00 and gave the stock an “underweight” rating in a research report on Tuesday, June 16th. TD Cowen reaffirmed a “hold” rating and set a $16.00 price objective (up from $9.00) on shares of FuelCell Energy in a research note on Tuesday, June 9th. Finally, Weiss Ratings upgraded FuelCell Energy from a “sell (e+)” rating to a “sell (d-)” rating in a report on Wednesday, May 20th. Three investment analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, FuelCell Energy currently has an average rating of “Hold” and an average price target of $22.00.

FuelCell Energy Price Performance

The company’s 50 day simple moving average is $20.76 and its 200 day simple moving average is $12.38. The company has a debt-to-equity ratio of 0.18, a current ratio of 8.59 and a quick ratio of 7.20. The stock has a market cap of $1.51 billion, a P/E ratio of -3.39 and a beta of 2.31.

FuelCell Energy (NASDAQ:FCEL) last released its quarterly earnings data on Monday, June 8th. The energy company reported ($0.53) earnings per share for the quarter, missing the consensus estimate of ($0.52) by ($0.01). FuelCell Energy had a negative net margin of 132.41% and a negative return on equity of 15.90%. The business had revenue of $35.59 million for the quarter, compared to the consensus estimate of $40.47 million. During the same quarter last year, the firm earned ($1.79) EPS. As a group, equities analysts forecast that FuelCell Energy, Inc. will post -1.84 earnings per share for the current year.

Hedge Funds Weigh In On FuelCell Energy

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Optiver Holding B.V. acquired a new stake in shares of FuelCell Energy in the 1st quarter valued at about $88,000. Bank of America Corp DE grew its holdings in shares of FuelCell Energy by 1,298.3% during the first quarter. Bank of America Corp DE now owns 190,724 shares of the energy company’s stock worth $1,245,000 after buying an additional 177,084 shares in the last quarter. Amundi grew its holdings in shares of FuelCell Energy by 118.4% during the first quarter. Amundi now owns 50,947 shares of the energy company’s stock worth $333,000 after buying an additional 27,621 shares in the last quarter. Entropy Technologies LP raised its position in FuelCell Energy by 28.6% in the 1st quarter. Entropy Technologies LP now owns 37,519 shares of the energy company’s stock valued at $245,000 after buying an additional 8,336 shares during the last quarter. Finally, First Trust Advisors LP bought a new stake in FuelCell Energy in the 1st quarter valued at approximately $758,000. 42.78% of the stock is owned by institutional investors and hedge funds.

FuelCell Energy Company Profile

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.