Powell Industries (NASDAQ:POWL) Trading Down 7.1% on Insider Selling

Powell Industries, Inc. (NASDAQ:POWL)’s share price fell 7.1% on Monday after an insider sold shares in the company. The stock traded as low as $270.36 and last traded at $271.9250. 87,940 shares changed hands during mid-day trading, a decline of 89% from the average session volume of 770,219 shares. The stock had previously closed at $292.65.

Specifically, Director Richard E. Williams sold 5,250 shares of the company’s stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $299.19, for a total transaction of $1,570,747.50. Following the completion of the sale, the director owned 39,630 shares in the company, valued at approximately $11,856,899.70. This represents a 11.70% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO Brett Alan Cope sold 4,440 shares of the firm’s stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $301.00, for a total value of $1,336,440.00. Following the sale, the chief executive officer directly owned 490,113 shares of the company’s stock, valued at $147,524,013. This represents a 0.90% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In other news, VP William Marshall Mauney, Jr. sold 2,500 shares of the company’s stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $323.69, for a total value of $809,225.00. Following the completion of the transaction, the vice president owned 10,853 shares in the company, valued at $3,513,007.57. This represents a 18.72% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website.

Analysts Set New Price Targets

A number of research analysts recently issued reports on POWL shares. JPMorgan Chase & Co. lifted their price objective on shares of Powell Industries from $310.00 to $360.00 and gave the company an “overweight” rating in a research note on Wednesday, May 6th. Cantor Fitzgerald upped their price objective on Powell Industries from $160.00 to $320.00 and gave the stock a “neutral” rating in a report on Monday, May 11th. Zacks Research lowered shares of Powell Industries from a “strong-buy” rating to a “hold” rating in a report on Monday, May 11th. Glj Research assumed coverage on Powell Industries in a research note on Thursday, March 5th. They issued a “hold” rating and a $150.00 price target for the company. Finally, Wall Street Zen cut Powell Industries from a “buy” rating to a “hold” rating in a research note on Saturday, March 7th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, Powell Industries presently has a consensus rating of “Moderate Buy” and a consensus target price of $236.67.

Powell Industries Stock Down 8.6%

The firm has a market capitalization of $9.74 billion, a PE ratio of 52.71, a P/E/G ratio of 3.82 and a beta of 1.14. The firm’s 50 day moving average price is $222.53 and its two-hundred day moving average price is $165.89.

Powell Industries (NASDAQ:POWL) last announced its quarterly earnings results on Monday, May 4th. The industrial products company reported $1.25 EPS for the quarter, missing the consensus estimate of $1.34 by ($0.09). The firm had revenue of $296.62 million during the quarter, compared to analyst estimates of $298.12 million. Powell Industries had a net margin of 16.51% and a return on equity of 28.61%. Powell Industries’s revenue for the quarter was up 6.5% compared to the same quarter last year. During the same quarter in the previous year, the business posted $3.81 EPS. On average, sell-side analysts anticipate that Powell Industries, Inc. will post 5.47 earnings per share for the current fiscal year.

Powell Industries Cuts Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 17th. Investors of record on Wednesday, May 20th will be issued a $0.09 dividend. This represents a $0.36 annualized dividend and a yield of 0.1%. The ex-dividend date is Wednesday, May 20th. Powell Industries’s dividend payout ratio is currently 7.05%.

Institutional Investors Weigh In On Powell Industries

Institutional investors have recently added to or reduced their stakes in the stock. Truist Financial Corp lifted its position in shares of Powell Industries by 42.9% during the third quarter. Truist Financial Corp now owns 15,041 shares of the industrial products company’s stock valued at $4,585,000 after purchasing an additional 4,519 shares in the last quarter. Stephens Investment Management Group LLC raised its holdings in Powell Industries by 6.5% in the third quarter. Stephens Investment Management Group LLC now owns 89,669 shares of the industrial products company’s stock worth $27,332,000 after buying an additional 5,455 shares during the last quarter. Envestnet Asset Management Inc. increased its position in Powell Industries by 17.3% during the third quarter. Envestnet Asset Management Inc. now owns 96,315 shares of the industrial products company’s stock valued at $29,358,000 after acquiring an additional 14,210 shares during the last quarter. Wesbanco Bank Inc. increased its stake in Powell Industries by 37.5% in the 3rd quarter. Wesbanco Bank Inc. now owns 6,600 shares of the industrial products company’s stock worth $2,012,000 after buying an additional 1,800 shares in the last quarter. Finally, NEOS Investment Management LLC increased its position in Powell Industries by 281.6% in the third quarter. NEOS Investment Management LLC now owns 53,170 shares of the industrial products company’s stock worth $16,207,000 after purchasing an additional 39,238 shares during the last quarter. 89.77% of the stock is owned by institutional investors.

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.