Babcock (NYSE:BW) Stock Jumps 10.1% – Should You Buy?

Shares of Babcock (NYSE:BW) were up 10.1% on Monday. The company traded as high as $3.51 and last traded at $3.5770. Approximately 564,293 shares were traded during mid-day trading, a decline of 87% from the average daily volume of 4,218,663 shares. The stock had previously closed at $3.25.

Key Stories Impacting Babcock

Here are the key news stories impacting Babcock this week:

• Positive Sentiment: Third-quarter revenue rose sharply year over year to $290.8 million, beating estimates, while adjusted EBITDA increased to $17.7 million from $9.4 million a year earlier. The company also reported $228 million in bookings and reiterated its 2026 adjusted EBITDA outlook, while setting a 2027 target of $125 million–$140 million. Third-quarter results 2027 EBITDA target and pipeline
• Neutral Sentiment: Northland Securities’ quarterly forecasts imply improving EPS through 2027, from $0.09 in Q4 2026 to $0.19 in Q4 2027. However, these are analyst estimates, not company guidance.
• Negative Sentiment: Northland cut its Q4 2026 EPS estimate to $0.09 from $0.15, signaling reduced expectations for the near term. Separately, Needham lowered its price target from $20 to $15, although it kept a Buy rating.
• Negative Sentiment: A law firm issued a notice inviting investors with losses to contact it regarding a class-action lawsuit involving Babcock & Wilcox. The notice adds a legal overhang, though it does not establish liability. Investor lawsuit notice

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on BW. Wall Street Zen downgraded Babcock from a “buy” rating to a “hold” rating in a report on Sunday, August 23rd. Weiss Ratings reissued a “sell (d+)” rating on shares of Babcock in a research report on Wednesday, November 4th. Finally, Needham & Company LLC dropped their price objective on Babcock from $20.00 to $15.00 and set a “buy” rating on the stock in a research note on Tuesday. Three research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Babcock has an average rating of “Hold” and a consensus target price of $15.75.

Babcock Stock Performance

The company’s 50-day simple moving average is $5.60 and its 200 day simple moving average is $11.27. The company has a current ratio of 1.45, a quick ratio of 1.33 and a debt-to-equity ratio of 4.21. The stock has a market cap of $660.51 million, a P/E ratio of -9.64 and a beta of 1.24.

Babcock (NYSE:BW) last announced its earnings results on Monday, August 10th. The technology company reported $0.04 earnings per share for the quarter, topping analysts’ consensus estimates of $0.02 by $0.02. The firm had revenue of $319.72 million for the quarter, compared to the consensus estimate of $196.95 million. Babcock had a negative return on equity of 15.21% and a net margin of 4.11%. As a group, sell-side analysts expect that Babcock will post 0.27 EPS for the current fiscal year.

Insiders Place Their Bets

In other Babcock news, Director Philip Moeller acquired 5,000 shares of Babcock stock in a transaction on Thursday, August 13th. The stock was purchased at an average price of $9.50 per share, for a total transaction of $47,500.00. Following the purchase, the director directly owned 240,809 shares of the company’s stock, valued at $2,287,685.50. This trade represents a 2.12% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Corporate insiders own 2.80% of the company’s stock.

Institutional Investors Weigh In On Babcock

A number of hedge funds have recently made changes to their positions in the business. Arrowstreet Capital Limited Partnership grew its position in Babcock by 777.3% during the first quarter. Arrowstreet Capital Limited Partnership now owns 2,974,324 shares of the technology company’s stock valued at $43,693,000 after buying an additional 2,635,304 shares during the period. Situational Awareness LP boosted its stake in Babcock by 49.7% in the second quarter. Situational Awareness LP now owns 2,027,451 shares of the technology company’s stock valued at $28,587,000 after acquiring an additional 673,551 shares during the last quarter. Wellington Management Group LLP purchased a new position in Babcock in the second quarter valued at about $18,260,000. Bank of America Corp DE grew its position in shares of Babcock by 1,743.7% during the 1st quarter. Bank of America Corp DE now owns 1,096,502 shares of the technology company’s stock valued at $16,108,000 after acquiring an additional 1,037,028 shares during the period. Finally, Cooper Creek Partners Management LLC bought a new position in shares of Babcock during the 1st quarter valued at approximately $15,205,000. 83.17% of the stock is currently owned by institutional investors.

About Babcock

Babcock & Wilcox Enterprises, Inc. is an energy and environmental technology company serving power, industrial and municipal customers. Its offerings include steam-generation equipment, emissions-control systems and related engineering, construction, maintenance and aftermarket services. The company also develops technologies for renewable and waste-to-energy applications, including systems that use biomass and municipal solid waste to produce energy. Its environmental technologies help customers manage emissions and other byproducts from energy and industrial processes.