FuelCell Energy Tumbles Despite Insider Purchases

Shares of FuelCell Energy Inc FCEL are down on Thursday afternoon, following the filing of a Form 4 with the SEC. According to the document, Chairman and Board Director John A. Rolls purchased, on Tuesday, 100,000 shares of the company’s Common Stock in the open market for $1.013 per share.

Following the $101,300 transaction, the insider disclosed ownership of 1.208 million shares of the small-cap integrated fuel cell company.

What’s interesting about this case is that, despite this purchase, and a previous one that Rolls made last week (140,000 shares), both at prices above the current valuation, the stock continues to tumble. Year-to-date, shares of FuelCell have lost more than 40 percent; over the past month, the decline surpassed 25 percent, compared to the Nasdaq’s 1.46 percent decay.

So, with such a depressed price, what should investors do?

Dougherty & Company recently initiated coverage on the stock with a Buy rating and a $2.50 price target. This target impies an upside of almost 170 percent from current stock prices.

Related Link: 5 Small-Cap Utilities Stocks With The Highest EPS Growth Forecast For Next 5 Years

Also quite recently, Benzinga published an article taking a look at “the top small-cap stocks in the utilities sector in terms of EPS growth forecast for the next five years.” Leading this list was none other than FuelCell, which is expected to deliver 40 percent EPS growth over the next five years. Moreover, analysts anticipate that the company will more than double its earnings over the next year.