FuelCell Energy (NASDAQ:FCEL) Shares Gap Up – Still a Buy?

FuelCell Energy, Inc. (NASDAQ:FCEL)’s stock price gapped up prior to trading on Thursday . The stock had previously closed at $22.54, but opened at $24.20. FuelCell Energy shares last traded at $23.8410, with a volume of 4,812,057 shares traded.

Key Stories Impacting FuelCell Energy

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

• Positive Sentiment: FuelCell Energy also announced a collaboration with Siemens to accelerate deployment of fuel cell-based distributed power systems, including work on 100+ MW commercial projects and potential data center applications, which could improve long-term growth prospects. Siemens and FuelCell Energy Collaborate to Explore Scalable Fuel Cell Power Solutions
• Neutral Sentiment: A recent insider sale by EVP Shankar Achanta was disclosed, but the transaction was relatively small and looks more like a routine filing than a major fundamental change. FuelCell Energy insider trade disclosure
• Negative Sentiment: The biggest overhang is the upsized public offering of common stock, which increased from $200 million to $225 million and is weighing on FCEL because investors typically dislike dilution, especially after a sharp recent run-up. FuelCell Energy Announces Upsize and Pricing of Offering of Common Stock
• Negative Sentiment: Analysts and commentators also noted profit-taking after FCEL’s powerful multi-month rally, amplifying the selloff alongside the stock sale news. Why FuelCell Energy Stock Is Tumbling on Wednesday

Analyst Ratings Changes

FCEL has been the subject of a number of research reports. Wells Fargo & Company upped their price objective on FuelCell Energy from $6.00 to $8.00 and gave the stock an “underweight” rating in a report on Tuesday, June 16th. B. Riley Financial upgraded FuelCell Energy from a “neutral” rating to a “buy” rating and boosted their target price for the stock from $13.00 to $32.00 in a research report on Monday, June 29th. UBS Group upped their target price on FuelCell Energy from $7.25 to $22.00 and gave the stock a “neutral” rating in a research note on Friday, June 26th. Jefferies Financial Group upgraded shares of FuelCell Energy from a “hold” rating to a “buy” rating and increased their price target for the company from $16.00 to $24.00 in a research report on Friday, June 26th. Finally, KeyCorp restated a “sector weight” rating on shares of FuelCell Energy in a report on Tuesday, June 9th. Three analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $22.00.

FuelCell Energy Stock Performance

The company has a quick ratio of 7.20, a current ratio of 8.59 and a debt-to-equity ratio of 0.18. The company has a fifty day moving average price of $21.00 and a 200 day moving average price of $12.47. The stock has a market cap of $1.59 billion, a PE ratio of -3.55 and a beta of 2.31.

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 the consensus estimate of $0.52 by ($1.05). FuelCell Energy had a negative return on equity of 15.90% and a negative net margin of 132.41%.The company had revenue of $35.59 million for the quarter, compared to the consensus estimate of $40.47 million. During the same quarter in the previous year, the business earned ($1.79) earnings per share. Analysts expect that FuelCell Energy, Inc. will post -1.84 earnings per share for the current year.

Insider Buying and Selling at FuelCell Energy

In other news, EVP Shankar Achanta sold 2,500 shares of the stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $28.71, for a total transaction of $71,775.00. Following the completion of the sale, the executive vice president owned 2,618 shares of the company’s stock, valued at approximately $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 SEC, which can be accessed through this hyperlink. Company insiders own 5.46% of the company’s stock.

Institutional Inflows and Outflows

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

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.