FuelCell Energy (NASDAQ:FCEL) Trading 9.1% Higher – Still a Buy?

FuelCell Energy, Inc. (NASDAQ:FCEL)’s share price traded up 9.1% during trading on Friday . The company traded as high as $18.81 and last traded at $18.83. Approximately 3,834,039 shares changed hands during mid-day trading, a decline of 43% from the average daily volume of 6,723,344 shares. The stock had previously closed at $17.26.

Key Stories Impacting FuelCell Energy

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

• Positive Sentiment: UBS raised its price target on FuelCell Energy to $27, saying recent deals with Fit Energy and Siemens could support about 45% upside and improve the company’s growth outlook. UBS Raises Its FuelCell Energy Stock Forecast With a $27 Stock Price Target
• Positive Sentiment: FuelCell Energy’s Siemens partnership is drawing attention because it targets commercial projects of 100 MW and above, which management has said is the scale needed to turn EBITDA positive. FuelCell Just Landed the Deal That Could Finally Turn It Profitable
• Neutral Sentiment: Recent market coverage comparing FCEL with other energy stocks has kept the company in the spotlight, but these articles are mainly commentary rather than new company-specific catalysts. Is FuelCell Energy (FCEL) Stock Outpacing Its Oils-Energy Peers This Year?
• Neutral Sentiment: Additional hydrogen-stock roundup pieces added sector attention, but they do not appear to contain a major new catalyst specific to FuelCell Energy. Hydrogen Stocks To Watch Today – July 15th
• Negative Sentiment: Some articles note that FCEL and peers had a sharp recent selloff, highlighting ongoing volatility and investor concern about execution and profitability. Bloom (BE) vs. FuelCell (FCEL): Which Energy Stock Is the Better Buy after This Week’s Selloff?

Analysts Set New Price Targets

A number of analysts have recently issued reports on FCEL shares. Jefferies Financial Group upgraded FuelCell Energy from a “hold” rating to a “buy” rating and increased their target price for the company from $16.00 to $24.00 in a report on Friday, June 26th. Wells Fargo & Company lifted their price target on FuelCell Energy from $6.00 to $8.00 and gave the company an “underweight” rating in a report on Tuesday, June 16th. Weiss Ratings raised FuelCell Energy from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Wednesday, May 20th. Canaccord Genuity Group increased their price objective on FuelCell Energy from $12.00 to $30.00 and gave the stock a “buy” rating in a research note on Tuesday, June 9th. Finally, KeyCorp restated a “sector weight” rating on shares of FuelCell Energy in a research report on Tuesday, June 9th. Four investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $22.83.

FuelCell Energy Trading Up 7.2%

The stock has a market cap of $1.25 billion, a price-to-earnings ratio of -2.82 and a beta of 2.31. The company has a debt-to-equity ratio of 0.18, a quick ratio of 7.20 and a current ratio of 8.59. The company’s 50 day simple moving average is $22.03 and its two-hundred day simple moving average is $13.00.

FuelCell Energy (NASDAQ:FCEL) last released its 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). 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 during the quarter, compared to analysts’ expectations of $40.47 million. During the same quarter in the previous year, the company earned ($1.79) EPS. Research analysts expect that FuelCell Energy, Inc. will post -1.84 EPS for the current fiscal year.

Insider Activity

In related news, EVP Shankar Achanta sold 2,500 shares of FuelCell Energy stock in a transaction 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 trade represents a 48.85% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 5.46% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of FCEL. Kestra Advisory Services LLC bought a new stake in shares of FuelCell Energy in the 4th quarter valued at approximately $29,000. Caitong International Asset Management Co. Ltd raised its position in FuelCell Energy by 1,316.0% during the third quarter. Caitong International Asset Management Co. Ltd now owns 7,618 shares of the energy company’s stock valued at $59,000 after acquiring an additional 7,080 shares in the last quarter. IQ EQ FUND MANAGEMENT IRELAND Ltd bought a new position in FuelCell Energy during the fourth quarter valued at approximately $78,000. Franklin Resources Inc. acquired a new stake in FuelCell Energy in the fourth quarter valued at approximately $84,000. Finally, Optiver Holding B.V. acquired a new stake in FuelCell Energy in the first quarter valued at approximately $88,000. 42.78% of the stock is owned by institutional investors and hedge funds.

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.