Q: Hi, Powell Industries seems to be in the right sector of electrical infrastructure and stock has done very well. However, as noted in your recent comments, it has been quite volatile, specially after the last quarterly results released in January.
The founder CEO, Mr Thomas Powell has sold bunch of shares in late 2023, as well over 50,000 shares, over a period of several days, between Feb and March, this year, ( $154 to $187 ). In addition, as per F144 filed on March 4, he intends to sell additional 200,000 shares, of which only 4000 shares have been sold on March 4 ( $185-$189 ). So, effectively, there continues to be an overhang of an impending sale of remaining shares, in the market.
Does it explain the sharp and precipitous decline of the stock over past 3 weeks ?
Is this a red flag and limits the future upside of this stock ?
On the bright side, Mr Powell still owns over 2.2 mln shares, which is about 22% of issued and o/s common shares of Powell Industries.
In your opinion, is the price decline of $45 from its recent high is overdone and POWL is a decent buy now, based on current valuation, minimal debt and future growth potential ?
We purchased the shares recently and own with ACB of $160 ( 1.25% weight ) to complement our HPS.a 3% position. Do you recommend holding the shares and add at current level or wait for next quarter ?
Thank You
The founder CEO, Mr Thomas Powell has sold bunch of shares in late 2023, as well over 50,000 shares, over a period of several days, between Feb and March, this year, ( $154 to $187 ). In addition, as per F144 filed on March 4, he intends to sell additional 200,000 shares, of which only 4000 shares have been sold on March 4 ( $185-$189 ). So, effectively, there continues to be an overhang of an impending sale of remaining shares, in the market.
Does it explain the sharp and precipitous decline of the stock over past 3 weeks ?
Is this a red flag and limits the future upside of this stock ?
On the bright side, Mr Powell still owns over 2.2 mln shares, which is about 22% of issued and o/s common shares of Powell Industries.
In your opinion, is the price decline of $45 from its recent high is overdone and POWL is a decent buy now, based on current valuation, minimal debt and future growth potential ?
We purchased the shares recently and own with ACB of $160 ( 1.25% weight ) to complement our HPS.a 3% position. Do you recommend holding the shares and add at current level or wait for next quarter ?
Thank You
