Forgent Power Solutions (NYSE:FPS) Shares Down 7.9% – Should You Sell?

Forgent Power Solutions, Inc. (NYSE:FPS)’s stock price fell 7.9% during mid-day trading on Monday . The company traded as low as $29.05 and last traded at $29.3020. Approximately 1,260,414 shares changed hands during trading, a decline of 79% from the average session volume of 6,021,528 shares. The stock had previously closed at $31.82.

Key Stories Impacting Forgent Power Solutions

Here are the key news stories impacting Forgent Power Solutions this week:

• Positive Sentiment: Fiscal fourth-quarter revenue rose 94% year over year to approximately $462 million, while adjusted EPS of $0.25 exceeded the $0.24 consensus estimate. The company said it surpassed the high end of its prior guidance. Forgent Reports Record Fourth Quarter and Full Year 2026 Results
• Positive Sentiment: Management entered fiscal 2027 with an all-time-high backlog of roughly $3 billion and record orders, supporting visibility into future revenue from data-center, power-grid and industrial customers. FPS stock record orders and backlog
• Positive Sentiment: Fiscal 2027 guidance was well above analyst expectations: EPS of $1.26–$1.40 versus a $1.14 consensus estimate, and revenue of $2.4–$2.6 billion versus a $2.1 billion estimate. The outlook implies continued strong growth and was the main catalyst for the move higher. Forgent FY27 earnings and guidance
• Neutral Sentiment: Initial fiscal 2027 first-quarter revenue guidance of $445 million–$465 million is broadly in line with the $456.7 million consensus estimate, suggesting investors will focus on whether the company can sustain its projected full-year acceleration.
• Neutral Sentiment: Unusually heavy options activity preceded the earnings release, with call-option purchases roughly 286% above average, indicating elevated investor interest but also potentially higher short-term volatility.

Analysts Set New Price Targets

A number of research firms have commented on FPS. Wolfe Research restated an “outperform” rating and set a $60.00 target price on shares of Forgent Power Solutions in a research note on Thursday, July 9th. Weiss Ratings lowered shares of Forgent Power Solutions from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Tuesday, July 28th. Jefferies Financial Group increased their price objective on shares of Forgent Power Solutions from $44.00 to $56.00 and gave the stock a “buy” rating in a research note on Friday, May 29th. Robert W. Baird initiated coverage on shares of Forgent Power Solutions in a research report on Wednesday, July 15th. They set an “outperform” rating and a $55.00 price objective on the stock. Finally, TD Cowen upped their target price on shares of Forgent Power Solutions from $63.00 to $73.00 and gave the stock a “buy” rating in a report on Monday, June 22nd. One investment analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $56.75.

Forgent Power Solutions Stock Up 9.8%

The company has a market capitalization of $9.58 billion and a PE ratio of 209.69. The company’s 50 day moving average is $35.63 and its two-hundred day moving average is $40.19. The company has a quick ratio of 1.16, a current ratio of 1.64 and a debt-to-equity ratio of 0.99.

Forgent Power Solutions (NYSE:FPS) last announced its quarterly earnings results on Tuesday, September 15th. The company reported $0.25 EPS for the quarter, topping the consensus estimate of $0.24 by $0.01. Forgent Power Solutions had a net margin of 2.17% and a return on equity of 12.14%. The business had revenue of $461.67 million for the quarter. The company’s quarterly revenue was up 94.3% on a year-over-year basis. Forgent Power Solutions has set its FY 2027 guidance at 1.260-1.400 EPS. On average, analysts anticipate that Forgent Power Solutions, Inc. will post 0.62 earnings per share for the current year.

Hedge Funds Weigh In On Forgent Power Solutions

Institutional investors have recently added to or reduced their stakes in the company. Northwestern Mutual Wealth Management Co. purchased a new stake in shares of Forgent Power Solutions during the 2nd quarter worth approximately $30,000. Triumph Capital Management bought a new stake in Forgent Power Solutions in the second quarter worth $39,000. IFP Advisors Inc purchased a new stake in Forgent Power Solutions during the second quarter valued at $48,000. Hollencrest Capital Management bought a new position in Forgent Power Solutions during the second quarter valued at $56,000. Finally, Allworth Financial LP bought a new position in Forgent Power Solutions during the second quarter valued at $86,000.

About Forgent Power Solutions

Forgent Power Solutions, Inc develops and manufactures products used in electric power transmission and distribution infrastructure. Its offerings support the generation, transmission, distribution and management of electrical power for utility and industrial applications.

The company’s product portfolio includes equipment and components used in overhead and underground power networks, including electrical connectors, fittings, line hardware and other engineered solutions designed to support the reliability and efficiency of power-delivery systems.

Forgent Power Solutions serves electric utilities, distributors and industrial customers, primarily through markets connected to North American power infrastructure.