Bloom Energy Corporation (BE) Clearly Signals Buy-Into the Stock: Don’t ignore the signals

Bloom Energy Corporation (NYSE: BE) stock fell -4.30% on Monday to $14.47 against a previous-day closing price of $15.12. With 2.59 million shares changed hands, the volume of the stock remained lighter than its average volume of 3.21 million shares. During the session, the Electrical Equipment & Parts company that operates in wider Industrials sector, reached to the highest price of $15.06 whereas the lowest price it dropped to was $14.46. The 52-week range on BE shows that it touched its highest point at $26.55 and its lowest point at $12.33 during that stretch. It currently has a 1-year price target of $25.90. Beta for the stock currently stands at 2.84.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of BE was down-trending over the past week, with a drop of -4.17%, but this was up by 0.14% over a month. Three-month performance dropped to -15.68% while six-month performance fell -15.63%. The stock lost -44.07% in the past year, while it has lost -24.32% so far this year. A look at the trailing 12-month EPS for BE yields -1.20 with Next year EPS estimates of 0.39. For the next quarter, that number is -0.03. This implies an EPS growth rate of -71.00% for this year and 262.50% for next year.

Float and Shares Shorts:

At present, 208.69 million BE shares are outstanding with a float of 180.64 million shares on hand for trading. On Aug 30, 2023, short shares totaled 30.5 million, which was 14.56% higher than short shares on Jul 30, 2023. In addition to Dr. K. R. Sridhar Ph.D. as the firm’s Co-Founder, CEO & Chairman, Mr. Gregory D. Cameron serves as its Pres & CFO.

Institutional Ownership:

Through their ownership of 77.36% of BE’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 46.21% of BE, in contrast to 30.43% held by mutual funds. Shares owned by individuals account for 19.93%. As the largest shareholder in BE with 10.84% of the stake, Columbia Management Investment Ad holds 22,703,301 shares worth 22,703,301. A second-largest stockholder of BE, The Vanguard Group, Inc., holds 17,044,481 shares, controlling over 8.14% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in BE, holding 12,503,371 shares or 5.97% stake. With a 7.31% stake in BE, the Columbia Seligman Technology & In is the largest stakeholder. A total of 15,317,754 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.77% of BE stock, is the second-largest Mutual Fund holder. It holds 5,805,387 shares valued at 87.02 million. Government Pension Fund – Global holds 2.57% of the stake in BE, owning 5,377,905 shares worth 80.61 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, BE reported revenue of $243.24M and operating income of -$102.17M. The EBITDA in the recently reported quarter was -$86.86M and diluted EPS was -$0.67.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BE since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With BE analysts setting a high price target of $32.00 and a low target of $17.00, the average target price over the next 12 months is $25.44. Based on these targets, BE could surge 121.15% to reach the target high and rise by 17.48% to reach the target low. Reaching the average price target will result in a growth of 75.81% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded BE stock several times over the past three months with 10 Buys and 7 Sells. In these transactions, 46,474 shares were bought while 19,527 shares were sold. The number of buy transactions has increased to 69 while that of sell transactions has risen to 46 over the past year. The total number of shares bought during that period was 11,551,251 while 620,277 shares were sold.

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