How Should Investors View Babcock & Wilcox Enterprises Inc. (BW) Insider Trading?

As of Thursday close, Babcock & Wilcox Enterprises Inc.’s (NYSE:BW) stock was up $0.44, moving up 8.29 percent to $5.75. The average number of shares traded per day over the past five days has been 1,074,400 shares. 1 time new highs have been achieved over the past 5 days, with a -$1.90 fall in that time frame. In the last twenty days, the average volume was 521,685, while in the previous 50 days, it was 546,924.

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Since last month, BW stock retreated -24.74%. Shares of the company fell to $5.19 on 05/11/22, the lowest level in the past month. A 52-week high of $10.37 was reached on 01/03/22 after having rallying from a 52-week low of $5.19. Since the beginning of this year, BW’s stock price has dropped by -36.25% or -$3.27, and marked a new high 1 time. However, the stock has declined by -44.55% since its 52-week high.

Babcock & Wilcox Enterprises Inc. (BW) last reported insider trading activity 64 days ago on Mar 10. Howe Alan B, the Director of the company, purchased of 2,500 shares for $7.63 on Mar 10. It resulted in a $19,077 investment by the insider. Young Kenneth M added 20,000 shares at an average price of $7.82 on Mar 10. The insider now owns 85,000 shares following the transaction. On Mar 10, Chief Financial Officer Salamone Louis Jr bought 10,000 shares at $7.79 apiece. The transaction was valued at $77,892.

Valuation Metrics

Right now, Babcock & Wilcox Enterprises Inc. (BW) has a P/E ratio of about 29.04. The stock’s beta is 2.49. Besides these, the trailing price-to-sales (P/S) ratio of 0.71, the price-to-book (PB) ratio of 15.13.

Financial Health

In the three months ended September 29, Babcock & Wilcox Enterprises Inc.’s quick ratio stood at 2.00, while its current ratio was 2.30, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending September 29 was 10.79, and the total debt-to-equity ratio was 11.24. On the profitability front, the trailing twelve-month gross margin is 24.80% percent. In the year ended September 29, operating margins totaled 3.50%. Based on annual data, BW earned $179.53 million in gross profit and brought in $723.36 million in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 6.90%. Return on equity (ROE) for the past 12 months was -47.60%.

In Babcock & Wilcox Enterprises Inc.’s quarter-end financial report for September 29, it reported total debt of $1.48 million. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. BW’s revenue rose 17.54% to $192.3 million during the quarter, while net income inched up to $204.05 million. While analysts expected Babcock & Wilcox Enterprises Inc. to report $0.02 quarterly earnings, the actual figure was $0.11 per share. During the quarter, the company generated $0.48 million in EBITDA. The liabilities of Babcock & Wilcox Enterprises Inc. were 910.76 million at the end of its most recent quarter ended September 29, and its total debt was $258.85 million. The value of shareholders’ equity is $86.34 million.

Technical Picture

This quick technical analysis looks at Babcock & Wilcox Enterprises Inc.’s (BW) price momentum. With a historical volatility rate of 155.05%, the RSI 9-day stood at 28.65% on 12 May.

With respect to its five-day moving average, the current Babcock & Wilcox Enterprises Inc. price is down by -24.84% percent or -$1.90. At present, BW shares trade -25.81% below its 20-day simple moving average and -33.29% percent below its 100-day simple moving average. However, the stock is currently trading approximately -19.01% below its SMA50 and -19.80% below its SMA200.

Stochastic coefficient K was 8.45% and Stochastic coefficient D was 8.27%, while ATR was 0.58. Given the Stochastic reading of 19.11% for the 14-day period, the RSI (14) reading has been calculated as 31.23%. As of today, the MACD Oscillator reading stands at -1.40, while the 14-day reading stands at -1.61.

Analyst Ratings

Lake Street launched its rating on Babcock & Wilcox Enterprises Inc. (NYSE: BW) to a Buy in a note to investors on March 25, 2021. Babcock & Wilcox Enterprises Inc. (BW) has been rated Overweight by analysts. According to 1 brokerage firm, BW is a sell, and 0 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate Babcock & Wilcox Enterprises Inc. stock as buy, with 3 recommending it as overweight.

With a median target price of $12.00, the current consensus forecast for the stock is $7.00 – $15.00. Based on these forecasts, analysts predict Babcock & Wilcox Enterprises Inc. (BW) will achieve an average price target of $11.50.


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