Knowles (NYSE:KN) Rating Lowered to Hold at Zacks Research

Key Points

• Zacks Research downgraded Knowles to “Hold” from “Strong Buy,” following similar rating reductions by other firms. The stock has an overall consensus rating of “Hold” and an average price target of $40.67.
• Knowles shares opened at $36.75, compared with a 52-week range of $20.57 to $42.93. The company recently exceeded quarterly earnings and revenue expectations, reporting $0.33 in EPS and $166.8 million in revenue.
• Insiders recently sold shares, while institutional investors remain heavily invested, owning 96.35% of the stock. Knowles also issued third-quarter 2026 EPS guidance of $0.34 to $0.38.

Knowles (NYSE:KN - Get Free Report) was downgraded by Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued to investors on Tuesday, Zacks reports.

KN has been the topic of a number of other reports. Weiss Ratings downgraded Knowles from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Monday, August 31st. Susquehanna lifted their price objective on Knowles from $33.00 to $40.00 and gave the stock a "neutral" rating in a research note on Friday, July 24th. Wall Street Zen lowered shares of Knowles from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 1st. Finally, Robert W. Baird set a $44.00 price objective on shares of Knowles in a research note on Friday, July 24th. Two research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat, Knowles presently has an average rating of "Hold" and a consensus target price of $40.67.

Knowles Price Performance

KN stock opened at $36.75 on Tuesday. Knowles has a one year low of $20.57 and a one year high of $42.93. The company's fifty day moving average price is $36.22 and its 200-day moving average price is $34.22. The company has a debt-to-equity ratio of 0.16, a quick ratio of 1.75 and a current ratio of 3.20. The company has a market capitalization of $3.14 billion, a PE ratio of 47.72 and a beta of 1.59.

Knowles (NYSE:KN - Get Free Report) last posted its earnings results on Thursday, July 23rd. The communications equipment provider reported $0.33 earnings per share for the quarter, beating the consensus estimate of $0.31 by $0.02. The company had revenue of $166.80 million during the quarter, compared to analysts' expectations of $156.97 million. Knowles had a net margin of 10.63% and a return on equity of 11.45%. Knowles's quarterly revenue was up 14.3% on a year-over-year basis. During the same period last year, the company posted $0.24 earnings per share. Knowles has set its Q3 2026 guidance at 0.340-0.380 EPS. On average, equities analysts anticipate that Knowles will post 1.02 EPS for the current fiscal year.

Insider Transactions at Knowles

In related news, Director Cheryl Shavers sold 6,618 shares of the company's stock in a transaction dated 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 in the company, valued at approximately $1,402,842.21. This represents a 15.63% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Raymond Cabrera sold 6,178 shares of the stock in a transaction dated 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 $4,641,844.60. This trade represents a 4.61% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 2.24% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Knowles

Hedge funds and other institutional investors have recently modified their holdings of the business. QRG Capital Management Inc. lifted its holdings in Knowles by 7.7% during the 2nd quarter. QRG Capital Management Inc. now owns 10,565 shares of the communications equipment provider's stock valued at $438,000 after buying an additional 759 shares in the last quarter. Integrated Wealth Concepts LLC acquired a new stake in Knowles in the second quarter worth about $55,000. Baird Financial Group Inc. purchased a new stake in shares of Knowles during the second quarter valued at $317,000. Allianz Asset Management GmbH purchased a new stake in Knowles in the second quarter valued at approximately $5,756,000. Finally, Amundi boosted its holdings in Knowles by 6.2% in the second quarter. Amundi now owns 91,579 shares of the communications equipment provider's stock valued at $3,799,000 after purchasing an additional 5,325 shares during the last quarter. 96.35% of the stock is currently owned by hedge funds and other institutional investors.

Knowles Company Profile

Knowles Corporation NYSE: KN is a global supplier of advanced audio, electronic and specialty component technologies. The company develops products that enable sound capture, processing and delivery in applications ranging from consumer electronics and communications equipment to medical devices and industrial systems.

Knowles' product portfolio includes microelectromechanical systems (MEMS) microphones, audio processors, speakers and related acoustic components. It also provides capacitors, resistors and other specialty electronic components, as well as precision devices used in medical, defense, aerospace and other demanding applications.

With operations and customers across North America, Europe, Asia and other international markets, Knowles serves manufacturers in the consumer electronics, mobile communications, hearing health, automotive, industrial and aerospace and defense sectors.

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