BlackRock Cut Its Stake in FuelCell Energy (FCEL) Stock

Most institutional investors have bailed on FCEL, but BlackRock remains in the game despite some trimming

Source: T. Schneider / Shutterstock.com

As FuelCell (NASDAQ:FCEL) has battled difficult market forces and short squeeze speculation, a major institutional investor has been trimming its stake. BlackRock (NYSE:BLK) has reported via a regulatory filing dated Jan. 26, 2024, that it ended 2023 with 35,027,576 shares after previously reporting 41,616,185 shares at the end of the third quarter of 2023. The financial services giant’s current stake is just under 8%. While FCEL stock is up today amid high volatility, it has decreased considerably over the past month, falling almost 40%. This leads to some questions as to the company’s prospects as it enters a new year.

What’s Happening With FCEL Stock

As noted, FuelCell is likely to close out the week on a high note. Shares are up by about 1% as of this writing after battling severe turbulence all day. It’s been a good week overall for the troubled company. But even though FCEL stock has recently risen above difficult market conditions, it’s clear that institutional sentiment toward the company is definitely shifting.

Granted, BlackRock is still the top institutional investor with a 7.80%. It trails behind only Vanguard, which currently owns 40,976,982 shares. Yet data from WhaleWisdom shows that many other shareholders have been trimming their FuelCell stakes. The number of funds holding FCEL stock and the percentage of ownership have both declined 2.5%, while the number of new positions is down 6% from the previous quarter. Meanwhile, the number of increased positions has fallen almost 14%, and the Put/Call ratio has increased by more than 6%, indicating that bearish sentiment toward it is rising.

With other institutional investors reducing their stakes, it makes sense that BlackRock would be trimming its position, particularly as FCEL stock has struggled. However, the firm is still among FuelCell’s top shareholders. It clearly hasn’t given up on the company yet. For all its difficulties lately, FuelCell could still mount a comeback if market conditions shift in its favor.

On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines

Samuel O’Brient is a Reporter for InvestorPlace, where his work focuses primarily on financial markets, global economic trends, and public policy. O’Brient writes a weekly column on recent political news that investors should be following.

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