Powell Industries (NASDAQ:POWL) Announces Quarterly Earnings Results, Misses Expectations By $0.05 EPS

Powell Industries (NASDAQ:POWL) issued its quarterly earnings results on Monday. The industrial products company reported $1.42 EPS for the quarter, missing the consensus estimate of $1.47 by ($0.05), Zacks reports. Powell Industries had a net margin of 16.51% and a return on equity of 28.61%.

Powell Industries Price Performance

Powell Industries stock traded up $11.04 during mid-day trading on Monday, hitting $219.72. 1,433,324 shares of the company’s stock traded hands, compared to its average volume of 771,224. The firm has a 50 day simple moving average of $263.99 and a two-hundred day simple moving average of $224.08. Powell Industries has a fifty-two week low of $69.00 and a fifty-two week high of $328.00. The stock has a market cap of $8.00 billion, a price-to-earnings ratio of 43.00, a P/E/G ratio of 2.73 and a beta of 1.13.

Powell Industries Cuts Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, June 17th. Shareholders of record on Wednesday, May 20th were issued a dividend of $0.09 per share. The ex-dividend date of this dividend was Wednesday, May 20th. This represents a $0.36 annualized dividend and a yield of 0.2%. Powell Industries’s dividend payout ratio (DPR) is currently 7.05%.

Insider Buying and Selling

In other news, EVP Michael William Metcalf sold 4,500 shares of the stock in a transaction dated Tuesday, June 30th. The shares were sold at an average price of $284.64, for a total value of $1,280,880.00. Following the transaction, the executive vice president directly owned 78,900 shares of the company’s stock, valued at $22,458,096. This represents a 5.40% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Thomas W. Powell sold 33,958 shares of the firm’s stock in a transaction dated Thursday, June 25th. The stock was sold at an average price of $294.49, for a total transaction of $10,000,291.42. Following the sale, the insider owned 564,736 shares of the company’s stock, valued at approximately $166,309,104.64. This represents a 5.67% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 55,088 shares of company stock valued at $16,070,066. 2.20% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Powell Industries

A number of large investors have recently made changes to their positions in POWL. State Street Corp lifted its holdings in shares of Powell Industries by 0.9% during the second quarter. State Street Corp now owns 352,103 shares of the industrial products company’s stock worth $74,100,000 after buying an additional 3,159 shares in the last quarter. Invesco Ltd. grew its position in shares of Powell Industries by 2.4% during the 3rd quarter. Invesco Ltd. now owns 348,091 shares of the industrial products company’s stock worth $106,102,000 after purchasing an additional 8,083 shares in the last quarter. Federated Hermes Inc. raised its position in shares of Powell Industries by 3.4% in the fourth quarter. Federated Hermes Inc. now owns 185,113 shares of the industrial products company’s stock valued at $59,010,000 after buying an additional 6,094 shares in the last quarter. UBS Group AG lifted its position in shares of Powell Industries by 6.3% during the 3rd quarter. UBS Group AG now owns 158,247 shares of the industrial products company’s stock valued at $48,235,000 after acquiring an additional 9,374 shares during the period. Finally, Janus Henderson Group PLC grew its stake in Powell Industries by 24.1% during the fourth quarter. Janus Henderson Group PLC now owns 145,034 shares of the industrial products company’s stock worth $46,224,000 after buying an additional 28,196 shares in the last quarter. Institutional investors own 89.77% of the company’s stock.

Analyst Ratings Changes

Several research analysts have weighed in on POWL shares. Glj Research raised Powell Industries from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, July 14th. Zacks Research downgraded Powell Industries from a “strong-buy” rating to a “hold” rating in a report on Monday, May 11th. Cantor Fitzgerald raised their target price on shares of Powell Industries from $160.00 to $320.00 and gave the company a “neutral” rating in a research note on Monday, May 11th. JPMorgan Chase & Co. boosted their target price on shares of Powell Industries from $310.00 to $360.00 and gave the stock an “overweight” rating in a report on Wednesday, May 6th. Finally, Weiss Ratings lowered shares of Powell Industries from a “buy (b)” rating to a “buy (b-)” rating in a research report on Thursday, July 16th. Two analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Buy” and a consensus target price of $236.67.

About Powell Industries

Powell Industries, Inc is an industrial electrical engineering company specializing in the design, manufacture and integration of customized power control and distribution solutions. The firm’s offerings range from medium‐voltage switchgear and power control centers to bus duct, motor control centers and specialty transformers. Powell also provides automation systems, protective relaying, metering, supervisory control and data acquisition (SCADA) platforms, and turnkey engineering services to help clients manage critical power infrastructure.

Serving the oil and gas, petrochemical, refining, utility, mining and industrial sectors, Powell’s products are engineered to meet demanding performance, safety and reliability requirements.