Why Capstone Turbine Corporation (CPST) Hit a Five-Year High Today (Update)

Update (4:15 p.m.): Updated with five-year high price and Wednesday market close information.

NEW YORK (TheStreet) -- Capstone Turbine Corporation  (CPST) hit a five-year high of $2.60 on Wednesday as the microturbine manufacturer continued to climb after its announcement earlier in the week that it had received several orders from oil and gas companies.

Capstone said it received orders from E-Finity Distributed Generation for turbines that the latter plans to use in oil and gas operations in the Marcellus and Utica Shale regions. Marcellus is the biggest source of natural gas in the U.S. at 104,000 square miles in Pennsylvania and West Virginia.

Capstone received the orders from E-Finity, a distributor of Capstone turbines, but the companies that actually placed the orders were not identified.

"The Capstone microturbine product has been the first choice for recent new and existing customers and is being selected due to its proven ability to provide reliable power for the natural gas and oil industry," said Jeff Beiter, an E-Finity managing partner, in a statement.

The stock closed at $2.45, up 3.81% or 9 cents from its previous close of $2.36. It amassed a volume of 24,083,822, more than triple its average of 7,010,580.

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TheStreet Ratings team rates CAPSTONE TURBINE CORP as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate CAPSTONE TURBINE CORP (CPST) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been poor profit margins."

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