Bloom Energy (NYSE:BE) Shares Decline 5.3% - Is It Time to Sell?

Bloom Energy Co. (NYSE:BE) experienced a significant drop in its stock price, falling 5.3% during midday trading on Thursday. The share price hit a low of $22.13 before closing at $22.21. The trading volume reached approximately 2,032,119 shares, which is a 69% decrease from the average daily volume of 6,556,809 shares. Prior to this decline, the stock had a closing price of $23.46.

Recent Analyst Price Targets

Bloom Energy (BE) has been the subject of multiple recent analyst reports that have adjusted their price targets for the stock. On November 15th, BMO Capital Markets revised their price target from $12.00 to $19.50, maintaining a "market perform" rating. Similarly, Robert W. Baird raised their target from $15.00 to $32.00 while assigning an "outperform" rating on December 12th. HSBC Global Research updated Bloom Energy's rating to "hold" on November 20th, and Truist Financial lowered their price target from $13.00 to $12.00, also issuing a "hold" rating. On November 22nd, Piper Sandler increased their target from $20.00 to $30.00, giving a rating of "overweight". Overall, the stock currently holds one sell rating, twelve hold ratings, nine buy ratings, and one strong buy rating, leading to a consensus rating of "Hold" with an average price target of $22.45, according to MarketBeat.com.

Bloom Energy's Financials

Currently, Bloom Energy boasts a current ratio of 3.36, a quick ratio of 2.33, and a debt-to-equity ratio of 3.09. The company's 50-day moving average stands at $17.76, while the 200-day moving average is $14.18. Bloom Energy has a market capitalization of $5.17 billion, with a P/E ratio of -40.36 and a beta of 3.04. These numbers indicate a volatile stock with financial metrics that investors should consider carefully.

Insider Transactions

In recent insider trading news, Shawn Marie Soderberg sold 1,289 shares at an average price of $24.56 for a total of $31,657.84 on November 18th, resulting in a slight decrease of 0.76% in her holdings. Following this transaction, Soderberg owns 168,561 shares valued at approximately $4.14 million. Additionally, CEO Kr Sridhar sold 72,903 shares on November 20th at an average price of $25.02, totaling around $1.82 million. After this sale, the CEO's direct ownership stands at 1,869,593 shares worth approximately $46.78 million, reflecting a 3.75% decline in his holdings. Over the last quarter, insiders sold a total of 122,975 shares valued at $3.05 million, and insiders currently own about 8.81% of the company’s total shares.

Institutional Ownership Trends

Bloom Energy has seen significant activity among institutional investors recently. Millburn Ridgefield Corp increased their stake by 29.2% in the third quarter, now owning 2,339 shares valued at $25,000. Xponance Inc. raised its holdings by 7.8% in the second quarter, owning 12,542 shares worth $154,000 after acquiring additional shares. Kovitz Investment Group Partners LLC grew their position by 3.9%, holding 36,353 shares valued at $374,000. Furthermore, Arizona State Retirement System raised their stake by 2.7% during the second quarter, now owning 56,886 shares worth $696,000. Lastly, Wilmington Savings Fund Society FSB bought a new stake worth approximately $34,000 during the third quarter. Approximately 77.04% of Bloom Energy’s stock is currently owned by institutional investors and hedge funds.

About Bloom Energy

Bloom Energy Corporation specializes in designing, manufacturing, selling, and installing solid-oxide fuel cell systems for power generation on-site, both in the United States and internationally. The company’s key product, the Bloom Energy Server, utilizes solid oxide technology to convert various fuels—such as natural gas, biogas, and hydrogen—into electricity through an electrochemical process that does not involve combustion.

Final Thoughts

As Bloom Energy continues to attract attention from investors and analysts, the recent stock decline may lead many to consider their options. With a consensus rating of "Hold" from various analysts, potential investors might want to take a cautious approach when deciding whether to invest in or sell their positions in Bloom Energy.

BloomEnergy, Stocks, Investment