Wall Street Zen Downgrades Stem (NYSE:STEM) to Sell

Stem (NYSE:STEM) was downgraded by investment analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a research note issued on Saturday.

Separately, Weiss Ratings lowered shares of Stem from a “hold (c-)” rating to a “sell (d+)” rating in a report on Wednesday, February 11th. Three research analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Reduce” and an average price target of $20.00.

Stem Stock Performance

NYSE:STEM opened at $12.12 on Friday. The firm has a market cap of $101.69 million, a PE ratio of -1.28 and a beta of 1.30. Stem has a fifty-two week low of $5.81 and a fifty-two week high of $32.23. The business has a 50 day moving average price of $14.79 and a 200-day moving average price of $17.07.

Stem (NYSE:STEM) last issued its earnings results on Wednesday, March 4th. The company reported ($1.85) earnings per share (EPS) for the quarter, topping the consensus estimate of ($1.96) by $0.11. The firm had revenue of $47.14 million during the quarter, compared to the consensus estimate of $39.05 million. Research analysts predict that Stem will post -0.52 EPS for the current year.

Hedge Funds Weigh In On Stem

Several hedge funds have recently made changes to their positions in the business. IFP Advisors Inc raised its holdings in shares of Stem by 258.1% during the third quarter. IFP Advisors Inc now owns 1,479 shares of the company’s stock valued at $26,000 after acquiring an additional 1,066 shares in the last quarter. International Assets Investment Management LLC bought a new stake in Stem in the fourth quarter valued at $29,000. Skandinaviska Enskilda Banken AB publ purchased a new position in Stem during the 3rd quarter valued at $55,000. Zweig DiMenna Associates LLC bought a new position in Stem in the 4th quarter worth $125,000. Finally, Renaissance Technologies LLC purchased a new stake in shares of Stem in the 4th quarter worth about $169,000. 61.63% of the stock is owned by hedge funds and other institutional investors.

Stem News Roundup

Here are the key news stories impacting Stem this week:

• Positive Sentiment: Q4 & full?year 2025 results showed a revenue beat and margin improvement; Stem reported record gross margins and its first-ever positive adjusted EBITDA, signaling improving unit economics and operational leverage. Stem Announces Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Company commentary and analyst pieces highlight a strategic shift toward higher?margin software & services (a SaaS-style recurring revenue model), which could support valuation expansion if execution and churn metrics remain strong. Stem Inc.: Deciphering the SaaS Pivot and Strategic Realignment
• Positive Sentiment: Earnings-call coverage emphasizes a “profitability pivot” with improving cash flows and margin trends — investors looking for durable margin expansion may view this as the key takeaway. Stem, Inc. Earnings Call Marks Profitability Pivot
• Neutral Sentiment: FY?2026 revenue guidance was updated to a wide $140M–$190M range (consensus ? $167M). The range leaves room for upside but also creates near?term uncertainty about the pace of the SaaS transition and growth cadence. Earnings report & slides
• Neutral Sentiment: Q4 EPS remained a loss (narrower than estimates) and analysts still expect negative EPS for the current fiscal year (-0.52 consensus), so the company is in a transition phase from cash-burning hardware to recurring software revenue. MarketBeat STEM overview
• Neutral Sentiment: Full Q4 earnings-call transcript is available for detail on margin drivers, backlog, and the cadence of software bookings — active investors should review management’s answers on retention, ARR conversion and capex. Q4 2025 Earnings Call Transcript
• Negative Sentiment: Insider selling was reported (small sales by executives/shareholders disclosed in Form 4 filings), which can be interpreted negatively by some investors even if amounts are modest. SEC Form 4 – Insider Sales

About Stem

Stem, Inc is a technology company specializing in AI-driven energy storage and optimization solutions for commercial, industrial and utility customers. The company delivers integrated hardware and software systems that enable clients to manage energy consumption, reduce peak demand charges and provide ancillary services to the power grid. By combining battery storage hardware with advanced machine-learning algorithms, Stem helps organizations align energy usage with cost-saving opportunities while supporting grid reliability and renewable integration.

At the core of Stem’s offering is its Athena software platform, which uses real-time data and predictive analytics to forecast energy needs and automatically dispatch stored energy when it is most valuable.