Knowles (NYSE:KN) Stock Gets Price Target Trim from Susquehanna

Knowles (NYSE:KN) had its target price reduced by Susquehanna from $40.00 to $35.00 in a report published on Wednesday morning, MarketBeat reports. Susquehanna currently has a neutral rating on the communications equipment provider’s stock.

Other equities analysts have also recently issued reports about the stock. Zacks Research cut shares of Knowles from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, September 22nd. Robert W. Baird set a $44.00 price target on shares of Knowles in a report on Friday, July 24th. Wall Street Zen lowered shares of Knowles from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 1st. Finally, Weiss Ratings raised shares of Knowles from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, October 8th. Three analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, Knowles currently has a consensus rating of “Moderate Buy” and a consensus target price of $41.00.

Knowles Stock Performance

Knowles stock opened at $32.15 on Wednesday. The business has a 50 day moving average of $35.73 and a 200-day moving average of $35.87. Knowles has a 1 year low of $20.57 and a 1 year high of $42.93. The company has a debt-to-equity ratio of 0.16, a current ratio of 3.20 and a quick ratio of 1.75. The company has a market capitalization of $2.75 billion, a P/E ratio of 31.20 and a beta of 1.59.

Knowles (NYSE:KN) last issued its quarterly earnings data on Thursday, October 22nd. The communications equipment provider reported $0.38 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.36 by $0.02. Knowles had a net margin of 10.76% and a return on equity of 11.88%. The business had revenue of $184.00 million during the quarter, compared to analyst estimates of $172.10 million. During the same quarter last year, the business earned $0.33 EPS. The firm’s quarterly revenue was up 20.3% on a year-over-year basis. On average, equities research analysts predict that Knowles will post 1.02 earnings per share for the current year.

Insider Buying and Selling at Knowles

In related news, Director Cheryl L. Shavers sold 6,618 shares of the stock in a transaction 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 transaction, the director directly owned 35,723 shares of the company’s stock, valued at $1,402,842.21. This represents a 15.63% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed 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 firm’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 owned 127,945 shares of the company’s stock, valued at $4,641,844.60. The trade was a 4.61% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 2.24% of the company’s stock.

Hedge Funds Weigh In On Knowles

Several institutional investors have recently made changes to their positions in the stock. BlackRock Inc. acquired a new stake in shares of Knowles in the 2nd quarter valued at about $571,614,000. Andar Capital Management HK Ltd bought a new stake in Knowles in the 2nd quarter valued at about $117,000,000. Barrow Hanley Mewhinney & Strauss LLC bought a new stake in Knowles in the 2nd quarter valued at about $102,398,000. Arrowstreet Capital Limited Partnership raised its stake in Knowles by 3.3% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 809,015 shares of the communications equipment provider’s stock worth $20,776,000 after buying an additional 25,778 shares during the period. Finally, Bank of America Corp DE acquired a new position in Knowles during the 2nd quarter worth approximately $30,158,000. Institutional investors and hedge funds own 96.35% of the company’s stock.

Knowles News Roundup

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 Company Profile

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.