Knowles Corporation (NYSE:KN) Stock Now Rated “Hold” by Sell-Side Analysts

Knowles Corporation (NYSE:KN – Get Free Report) has earned a consensus rating of “Hold” from the five brokerages that are covering the firm, Marketbeat reports. Three research analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. The average 1-year price objective among analysts that have issued a report on the stock in the last year is $41.00.

A number of equities research analysts recently commented on KN shares. Wall Street Zen lowered shares of Knowles from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 1st. Weiss Ratings cut Knowles from a “buy (b-)” rating to a “hold (c+)” rating in a report on Friday. Zacks Research downgraded Knowles from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, September 22nd. Robert W. Baird set a $50.00 price target on Knowles in a report on Friday. Finally, Susquehanna reduced their price objective on Knowles from $40.00 to $35.00 and set a “neutral” rating for the company in a research report on Wednesday.

View Our Latest Research Report on Knowles

Insider Activity at Knowles

In other news, Director Cheryl L. Shavers sold 6,618 shares of the firm’s stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $39.27, for a total transaction of $259,888.86. Following the completion of the transaction, the director directly owned 35,723 shares of the company’s stock, valued at $1,402,842.21. This trade represents a 15.63% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Raymond D. Cabrera sold 6,178 shares of the business’s stock in a transaction on Monday, July 27th. The stock was sold at an average price of $36.28, for a total transaction of $224,137.84. Following the completion of the sale, the senior vice president directly owned 127,945 shares in the company, valued at approximately $4,641,844.60. This represents a 4.61% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 2.24% of the company’s stock.

Institutional Investors Weigh In On Knowles

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. bought a new position in shares of Knowles in the 2nd quarter valued at about $571,614,000. Legal & General Group Plc acquired a new stake in shares of Knowles in the second quarter valued at about $8,698,000. Hodges Capital Management Inc. increased its position in shares of Knowles by 66.2% in the first quarter. Hodges Capital Management Inc. now owns 217,386 shares of the communications equipment provider’s stock valued at $5,582,000 after acquiring an additional 86,563 shares during the last quarter. Andar Capital Management HK Ltd bought a new stake in Knowles during the second quarter worth about $4,853,000. Finally, Bank of America Corp DE bought a new stake in Knowles during the second quarter worth about $30,158,000. 96.35% of the stock is owned by institutional investors.

Key Knowles News

Here are the key news stories impacting Knowles this week:

  • Positive Sentiment: Knowles reported third-quarter earnings of $0.38 per share, above the $0.36 analyst consensus, while revenue reached $184 million, surpassing expectations of $172.1 million. Revenue increased 20.3% year over year, and earnings rose from $0.33 per share in the prior-year quarter. Knowles third-quarter earnings report
  • Positive Sentiment: The company issued an upbeat fourth-quarter outlook, projecting earnings per share of $0.390-$0.430 versus the $0.360 consensus and revenue of $180 million-$190 million versus expectations of $174.5 million. The guidance indicates continued momentum and could support future earnings estimates.
  • Positive Sentiment: Operational results also improved, with gross profit increasing to $81.3 million, operating profit reaching $30.7 million and operating cash flow rising to $44.6 million, according to the post-earnings analysis. Knowles third-quarter results analysis
  • Neutral Sentiment: Susquehanna cut its price target for Knowles. The move may weigh on sentiment, although the article details provided do not specify the revised target or the analyst’s rationale. Susquehanna cuts Knowles price target
  • Negative Sentiment: Insider trading data showed 15 open-market insider sales and no purchases over the past six months, including substantial sales by the CEO and other senior executives. While sales may reflect personal liquidity or scheduled transactions, the lack of insider buying can reinforce cautious investor sentiment.
  • Negative Sentiment: With Knowles trading at a reported P/E ratio above 40, investors may be taking profits after the earnings rally and demanding stronger evidence that the improved growth outlook justifies the company’s valuation.

Knowles Price Performance

KN opened at $32.15 on Tuesday. The company has a fifty day simple moving average of $35.73 and a 200 day simple moving average of $35.87. The company has a quick ratio of 1.75, a current ratio of 3.20 and a debt-to-equity ratio of 0.16. The stock has a market cap of $2.75 billion, a P/E ratio of 39.20 and a beta of 1.59. Knowles has a 12 month low of $20.57 and a 12 month high of $42.93.

Knowles (NYSE:KN – Get Free Report) last released its quarterly earnings data on Thursday, October 22nd. The communications equipment provider reported $0.38 earnings per share for the quarter, beating the consensus estimate of $0.36 by $0.02. Knowles had a return on equity of 11.88% and a net margin of 10.76%. The business had revenue of $184.00 million for the quarter, compared to analysts’ expectations of $172.10 million. During the same quarter in the previous year, the business posted $0.33 EPS. Knowles’s revenue for the quarter was up 20.3% on a year-over-year basis. On average, research analysts expect that Knowles will post 1.02 EPS for the current year.

Knowles Company Profile

(Get Free Report)

Knowles Corporation (NYSE: KN) is a global manufacturer of advanced electronic components and solutions for audio, communications, medical, industrial and other specialized applications. The company develops products that support sound capture, audio processing, signal management and high-performance connectivity in a range of electronic devices and systems.

Its portfolio includes microelectromechanical systems (MEMS) microphones, audio processors, speakers, receivers, balanced armature drivers and other acoustic components.

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Analyst Recommendations for Knowles (NYSE:KN)

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