After the SNB only increased its stake in Ballard Power in the third quarter, a significant reduction in the stake followed in the fourth quarter of 2023.
• In Q3, the SNB is increasing Ballard Power
• A significant sell-off follows in Q4
• Moderate buy recommendation from analysts
SNB increases Ballard Power in Q3
In the third quarter, the Swiss National Bank (SNB) increased its holdings in the Canadian fuel cell manufacturer Ballard Power. According to the relevant SEC form, the SNB increased its holding by 10,100 shares to a total of 529,800 papers worth around $1.97 million. The SNB thus increased the position by 1.94 percent. And other institutional investors also expressed enthusiasm for buying the Canadian company in the third quarter. For example, Vontobel and Citigroup also increased their holdings, as American Banking News reported.
However, in the third quarter of 2023, Ballard Power was once again in the red. The company reported a loss of $0.21 per share, compared to a loss of $0.14 per share in the year-ago period. Analysts’ forecast for earnings per share was previously $0.13. Revenue was $27.6 million, up from $21.3 million a year ago and also beating analysts’ previous estimates of $26.2 million.
Participation significantly reduced again in Q4
In the fourth quarter, the SNB returned a significant portion of its investment to Ballard Power. Of the 529,800 shares, the Swiss National Bank sold 56,300 shares. This reduces the shareholding by a whopping 10.63 percent to 473,500 papers. The remaining shares were worth $1.76 million as of the reporting date.
Ballard Power’s fourth quarter and full year 2023 results are pending. These are scheduled to be published on March 11, 2024.
Analysts are not very optimistic
Meanwhile, the experts are not optimistic about Ballard Power. In the past three months, according to data from TipRanks, the stock received just two ratings from Wall Street analysts, which resulted in a moderate sell recommendation (1x hold, 1x sell). The average price target for Ballard Power stock is $3.25, with a high forecast of $3.50 and a low forecast of $3.00. This means that the average price target currently corresponds to an upside potential of 6.50 percent compared to the last price of $3.0500 on the NASDAQ (as of the closing price on February 28, 2024).
Editorial team finanzen.net
This text is for informational purposes only and does not constitute an investment recommendation. finanzen.net GmbH excludes any claims for recourse.
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