Bank of America Raises BWX Technologies Price Target to $230

Investment firm Bank of America has increased its price target for BWX Technologies (NYSE: BWXT) from $220.00 to $230.00. This adjustment comes amid a series of positive assessments from various analysts regarding the technology company’s stock, which currently holds a “buy” rating.

In addition to Bank of America’s revised target, BTIG Research also raised its price target from $200.00 to $225.00, maintaining a “buy” rating on the stock. Northland Capital Markets upgraded BWX Technologies to a “strong-buy” rating earlier in September, while Weiss Ratings improved its rating from “hold (C+)” to “buy (B-)” in a report released on November 7, 2023. Zacks Research followed suit, upgrading the stock from “hold” to “strong-buy” on October 7, 2023. Lastly, Wall Street Zen also changed its rating from “hold” to “buy” on November 8, 2023.

The consensus among analysts is predominantly positive, with three research analysts assigning a “strong buy” rating, seven giving a “buy” rating, three opting for “hold,” and one issuing a “sell” rating. According to data from MarketBeat.com, BWX Technologies holds a consensus rating of “Moderate Buy” with an average price target of $184.83.

Market Performance and Recent Earnings

On November 3, 2023, BWX Technologies reported earnings of $1.00 per share (EPS) for the quarter, surpassing the consensus estimate of $0.85 by $0.15. The company’s revenue for the quarter reached $866.29 million, significantly exceeding analyst expectations of $795.48 million. This performance marks a 28.9% increase in revenue compared to the same quarter last year, when the company reported an EPS of $0.83.

The firm has also set its guidance for fiscal year 2025 between $3.750 and $3.800 EPS. Analysts predict that BWX Technologies will achieve an EPS of $3.23 for the current fiscal year.

As of Thursday, shares of BWX Technologies opened at $177.57, reflecting a slight decrease of 0.2%. The company has shown resilience in the market, with a one-year low of $84.21 and a high of $218.50. Currently, BWX Technologies has a market capitalization of $16.23 billion, a price-to-earnings (P/E) ratio of 55.49, and a beta of 0.78.

Dividend and Insider Activity

BWX Technologies has announced a quarterly dividend of $0.25 per share, set to be paid on December 10, 2023. Shareholders of record on November 19, 2023 will be eligible for this dividend, which represents an annualized yield of 0.6% and a payout ratio of 30.03%.

In recent insider transactions, Rex D. Geveden, the CEO of BWX Technologies, sold 10,000 shares of the company on November 12, 2023, at an average price of $197.90, for a total of approximately $1.98 million. Following this transaction, Geveden retains 187,594 shares valued at around $37.12 million, marking a decrease of 5.06% in his ownership stake.

Institutional Investor Activity

Several institutional investors have recently adjusted their holdings in BWX Technologies. ARK Investment Management LLC significantly increased its position by 426.5% during the second quarter, acquiring an additional 519,285 shares for a total of 641,049 shares valued at approximately $92.35 million.

Other notable changes include Sequoia Financial Advisors LLC, which raised its holdings by 7.1%, now owning 46,409 shares valued at $6.69 million. PNC Financial Services Group Inc. increased its stake by 52.6%, holding 11,460 shares valued at $1.13 million after purchasing additional shares.

Overall, institutional investors currently hold 94.39% of BWX Technologies’ stock, indicating strong confidence in the company’s future prospects.

BWX Technologies, headquartered in the United States, specializes in the manufacture and sale of nuclear components, serving both government and commercial sectors. The company operates through two segments: Government Operations and Commercial Operations, focusing on the design and production of naval nuclear components and reactors.