Zacks Investment Research Downgrades Capstone Turbine (NASDAQ:CPST) to Strong Sell

Capstone Turbine (NASDAQ:CPST) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research note issued on Tuesday, Zacks.com reports.

According to Zacks, “Capstone Turbine Corp. develops, designs, assembles and sells Capstone MicroTurbines. Capstone MicroTurbines provide power at the site of consumption and to hybrid electric vehicles that combine a primary source battery with an auxiliary power source, such as a microturbine, to enhance performance. The Capstone MicroTurbine combines sophisticated design, engineering and technology to produce a reliable and flexible generator of electricity and heat for commercial and industrial applications. “

Separately, Maxim Group set a $1.00 target price on Capstone Turbine and gave the stock a “buy” rating in a report on Friday, August 9th. One research analyst has rated the stock with a sell rating, two have given a hold rating and two have assigned a buy rating to the stock. The company currently has a consensus rating of “Hold” and an average target price of $1.25.

CPST opened at $0.64 on Tuesday. The firm has a market cap of $49.17 million, a price-to-earnings ratio of -2.56 and a beta of 0.65. Capstone Turbine has a 52-week low of $0.55 and a 52-week high of $1.24. The company has a current ratio of 2.50, a quick ratio of 1.77 and a debt-to-equity ratio of 1.18. The stock’s fifty day moving average is $0.74.

Capstone Turbine (NASDAQ:CPST) last released its earnings results on Tuesday, June 11th. The industrial products company reported ($0.06) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.04) by ($0.02). The company had revenue of $22.02 million for the quarter, compared to analyst estimates of $20.97 million. Capstone Turbine had a negative return on equity of 67.42% and a negative net margin of 19.97%. As a group, equities analysts anticipate that Capstone Turbine will post -0.15 EPS for the current year.

A number of large investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its stake in Capstone Turbine by 82.1% in the second quarter. Vanguard Group Inc. now owns 2,603,490 shares of the industrial products company’s stock worth $2,048,000 after buying an additional 1,174,045 shares in the last quarter. GMT Capital Corp bought a new position in Capstone Turbine in the first quarter worth approximately $247,000. Perkins Capital Management Inc. raised its stake in Capstone Turbine by 4.9% in the first quarter. Perkins Capital Management Inc. now owns 1,374,900 shares of the industrial products company’s stock worth $1,237,000 after buying an additional 63,757 shares in the last quarter. Wedbush Securities Inc. raised its stake in Capstone Turbine by 5.6% in the first quarter. Wedbush Securities Inc. now owns 485,365 shares of the industrial products company’s stock worth $437,000 after buying an additional 25,529 shares in the last quarter. Finally, Virtu Financial LLC raised its stake in Capstone Turbine by 77.5% in the first quarter. Virtu Financial LLC now owns 119,327 shares of the industrial products company’s stock worth $107,000 after buying an additional 52,107 shares in the last quarter. 10.88% of the stock is currently owned by institutional investors and hedge funds.

Capstone Turbine Company Profile

Capstone Turbine Corporation develops, manufactures, markets, and services microturbine technology solutions for use in stationary distributed power generation applications worldwide. It offers microturbine units, components, and various accessories for applications, including cogeneration comprising combined heat and power (CHP) and integrated CHP, as well as combined cooling, heat, and power; and renewable energy, natural resources, and critical power supply.

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