Ormat Technologies (NYSE:ORA) Trading Down 6.9% – Time to Sell?

Shares of Ormat Technologies, Inc. (NYSE:ORA) dropped 6.9% during trading on Wednesday . The stock traded as low as $102.09 and last traded at $100.4970. Approximately 171,924 shares were traded during mid-day trading, a decline of 80% from the average session volume of 843,605 shares. The stock had previously closed at $107.97.

Ormat Technologies News Roundup

Here are the key news stories impacting Ormat Technologies this week:

• Positive Sentiment: RBC reaffirmed its “outperform” rating and set a $130 price target, implying substantial upside from recent levels. RBC rating and price target
• Positive Sentiment: JPMorgan raised its price target from $122 to $131. Although the firm remains neutral, the higher target indicates confidence in Ormat’s longer-term valuation potential. JPMorgan rating and price target
• Positive Sentiment: Oppenheimer said Ormat’s 2030 targets appear achievable and imply a potential recovery in electricity margins to 40%, while RBC expects earnings growth through 2030. Oppenheimer margin outlook RBC earnings outlook
• Neutral Sentiment: Investor Day presentations and the accompanying transcript provide additional detail on Ormat’s strategic and financial targets, but they do not appear to introduce a major new near-term catalyst. Investor Day transcript
• Neutral Sentiment: A Zacks comparison of Ormat and National Grid is focused on which alternative-energy stock offers better value. The analysis may increase investor attention, but the headline does not establish Ormat as the preferred choice. Zacks value comparison

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on ORA shares. Sanford C. Bernstein upgraded shares of Ormat Technologies from an “underperform” rating to a “market perform” rating and set a $112.00 price target for the company in a research note on Friday, September 4th. Oppenheimer upped their target price on shares of Ormat Technologies from $141.00 to $145.00 and gave the company an “outperform” rating in a report on Wednesday. Wall Street Zen downgraded shares of Ormat Technologies from a “hold” rating to a “sell” rating in a research note on Saturday, August 8th. Jefferies Financial Group reaffirmed a “hold” rating and set a $117.00 price objective on shares of Ormat Technologies in a research report on Wednesday. Finally, JPMorgan Chase & Co. raised their price target on Ormat Technologies from $122.00 to $131.00 and gave the company a “neutral” rating in a report on Wednesday. Eight equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, Ormat Technologies currently has an average rating of “Moderate Buy” and an average target price of $130.75.

Ormat Technologies Price Performance

The company has a market capitalization of $5.93 billion, a price-to-earnings ratio of 47.50, a P/E/G ratio of 4.00 and a beta of 0.90. The company has a fifty day simple moving average of $105.81 and a two-hundred day simple moving average of $114.84. The company has a debt-to-equity ratio of 0.87, a quick ratio of 1.00 and a current ratio of 1.05.

Ormat Technologies (NYSE:ORA) last posted its quarterly earnings data on Wednesday, August 5th. The energy company reported $0.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.26 by $0.24. The business had revenue of $258.76 million for the quarter, compared to analysts’ expectations of $240.03 million. Ormat Technologies had a return on equity of 6.61% and a net margin of 10.66%.The business’s revenue was up 10.6% on a year-over-year basis. During the same quarter last year, the firm earned $0.48 earnings per share. As a group, research analysts anticipate that Ormat Technologies, Inc. will post 2.47 earnings per share for the current year.

Ormat Technologies Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 2nd. Shareholders of record on Wednesday, August 19th were paid a $0.12 dividend. This represents a $0.48 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend was Wednesday, August 19th. Ormat Technologies’s dividend payout ratio (DPR) is presently 23.65%.

Institutional Investors Weigh In On Ormat Technologies

Hedge funds have recently modified their holdings of the stock. Aster Capital Management DIFC Ltd acquired a new position in Ormat Technologies during the fourth quarter worth approximately $26,000. Main Street Group LTD acquired a new position in shares of Ormat Technologies in the 1st quarter valued at $29,000. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Ormat Technologies during the 4th quarter valued at $31,000. Los Angeles Capital Management LLC purchased a new stake in shares of Ormat Technologies during the 4th quarter valued at $32,000. Finally, Quantbot Technologies LP acquired a new stake in shares of Ormat Technologies during the 2nd quarter worth $33,000. 95.49% of the stock is owned by institutional investors and hedge funds.

Ormat Technologies Company Profile

Ormat Technologies, Inc is a renewable energy company that develops, owns, and operates geothermal, recovered energy, and energy storage facilities. The company also designs and manufactures equipment used to generate electricity from geothermal resources and waste heat, including its Ormat Energy Converter systems.

Ormat’s geothermal activities include the exploration and development of geothermal resources, power plant construction, and long-term operation and maintenance. Its recovered energy business converts industrial waste heat and other low-temperature heat sources into electricity.