Why FCEL Stock is glowing Up 2.49% recently

FuelCell Energy, Inc. (NASDAQ:FCEL) news for Monday includes FCEL start of commercial operation of the 2.8 megawatt fuel cell project located at the city of Tulare. FCEL reached at $2.06 price level during last trade its distance from 20 days simple moving average was 122.24%, and its distance from 50 days simple moving average was 198.77% while it has a distance of 100.33% from the 200 days simple moving average.

FuelCell Energy, Inc.  (Nasdaq: FCEL) declared the start of commercial operation of the 2.8 megawatt fuel cell project located at the city of Tulare, California’s waste water treatment facility, expanding the Company’s power generation portfolio.  

Key highlights include:

  • The power plant is fueled by the City’s biogas, which is treated by the SureSource TreatmentTM system, a cleanup technology optimized by FuelCell Energy’s extensive experience with on-site biogas treatment.
  • Prior to the fuel cell being installed, the methane rich biogas was flared, which wasted energy and produced emissions. FuelCell’s plant is now using that biogas and producing clean, renewable, carbon neutral power.  The fuel cell uses a natural chemical reaction versus a combustion approach to generate energy, significantly reducing the NOx, SOx, particulate matter and carbon emissions profile in the San Joaquin Valley.
  • FuelCell Energy’s SureSource 3000TM will also supply clean renewable heat to the wastewater facility’s anaerobic digesters, providing additional carbon emissions reductions. The fuel cell is operating on the renewable biogas generated by the waste produced by the community and processed by the wastewater treatment facility, increasing the efficiency of the installation, providing meaningful economic benefits to the city and increasing sustainability.
  • Under the State of California Bioenergy Market Adjustment Tariff (BioMAT) program, FuelCell Energy has executed a twenty-year power purchase agreement (“PPA”) with the local electric utility, Southern California Edison, to purchase the renewable and carbon neutral power for supply to the California electric grid.

“I am proud of our team for delivering the Tulare Biogas Project.  Globally, our solution delivers renewable and affordable power at a scale that is meaningful to communities and the utilities that serve them,” said Jason Few, President and Chief Executive Officer, FuelCell Energy.  “In addition to the significant environmental benefits of our solution, we also support our partners by providing a negative carbon footprint that supports offset emissions from their other forms of power generation.”

As a reminder, the Company will host a conference call on Tuesday, January 14, 2020, at 10:00 am EST to review its financial performance.  In addition, senior leadership will unveil the pillars of its transformation strategy under the direction of its President and CEO, Jason Few.  Conference call details will be provided at a later date.

Past 5 years growth of FCEL observed at 20.60%, and for the next five years the analysts that follow this company are expecting its growth at 15.00%. The average true range (ATR) is a measure of volatility introduced by Welles Wilder in his book, “New Concepts in Technical Trading Systems.” The true range indicator is the greatest of the following: current high less the current low, the absolute value of the current high less the previous close and the absolute value of the current low less the previous close. The average true range is a moving average, generally 14 days, of the true ranges.

FuelCell Energy, Inc. has an average true range (ATR) of 0.28. Other technical indicators are worth considering in assessing the prospects for EQT. FCEL’s price to sales ratio for trailing twelve months was 5.76 and price to book ratio for most recent quarter was 1.10, whereas price to cash per share for the most recent quarter was 24.32. The Company’s price to free cash flow for trailing twelve months was N/A. Its quick ratio for most recent quarter was 0.40. Analysts mean recommendation for the stock was 3.00. This number is based on a 1 to 5 scale where 1 indicates a Strong Buy recommendation while 5 represents a Strong Sell.

Should You Go With High Insider Ownership?

Many value investors look for stocks with a high percent of insider ownership, under the theory that when management are shareholders, they will act in its own self interest, and create shareholder value in the long-term. This aligns the interests of shareholders with management, thus benefiting everyone. While this sounds great in theory, high insider ownership can actually lead to the opposite result, a management team that is unaccountable because they can keep their jobs under almost any circumstance.

FuelCell Energy, Inc.‘s shares owned by insiders remained 0.06%, whereas shares owned by institutional owners are 4.70%.

Meanwhile, FCEL traded under umbrella of Industrial Goods sector, the stock was traded -81.74% ahead of its 52-week high and 1437.31% beyond its 52-week low. So, both the price and 52-week high indicators would give you a clear-cut picture to evaluate the price direction.

As of this writing, Jake Charles did not hold a position in any of the aforementioned securities.

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