Franklin Electric Co., Inc. (NASDAQ:FELE) Declares Quarterly Dividend of $0.27

Key Points

• Franklin Electric Co., Inc. declared a quarterly dividend of $0.27, which amounts to an annualized dividend of $1.06, representing a yield of 1.14%.
• The company reported earnings of $0.67 per share for the last quarter, falling short of analyst expectations, with revenues of $455.25 million reflecting a 1.2% decline year-over-year.
• Insider transactions revealed that Director David M. Wathen sold 99,402 shares totaling over $8.5 million, indicating a significant reduction in ownership by the director.

Franklin Electric Co., Inc. (NASDAQ:FELE - Get Free Report) announced a quarterly dividend on Monday, July 28th, RTT News reports. Shareholders of record on Thursday, August 7th will be given a dividend of 0.265 per share by the industrial products company on Thursday, August 21st. This represents a $1.06 dividend on an annualized basis and a yield of 1.14%.

Franklin Electric has a dividend payout ratio of 22.6% indicating that its dividend is sufficiently covered by earnings. Analysts expect Franklin Electric to earn $4.65 per share next year, which means the company should continue to be able to cover its $1.06 annual dividend with an expected future payout ratio of 22.8%.

Franklin Electric Price Performance

FELE stock opened at $92.89 on Monday. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.98 and a quick ratio of 0.82. Franklin Electric has a 1 year low of $78.87 and a 1 year high of $111.94. The firm has a market capitalization of $4.24 billion, a P/E ratio of 24.32, a P/E/G ratio of 1.88 and a beta of 1.07. The business's 50-day moving average is $88.78 and its two-hundred day moving average is $93.03.

Franklin Electric (NASDAQ:FELE - Get Free Report) last issued its earnings results on Tuesday, April 29th. The industrial products company reported $0.67 earnings per share for the quarter, missing the consensus estimate of $0.73 by ($0.06). Franklin Electric had a return on equity of 14.08% and a net margin of 8.85%. The business had revenue of $455.25 million for the quarter, compared to analyst estimates of $471.21 million. During the same period last year, the business posted $0.70 EPS. Franklin Electric's revenue was down 1.2% on a year-over-year basis. Analysts anticipate that Franklin Electric will post 4.19 earnings per share for the current fiscal year.

Insider Activity at Franklin Electric

In other Franklin Electric news, Director David M. Wathen sold 24,000 shares of Franklin Electric stock in a transaction that occurred on Wednesday, June 4th. The stock was sold at an average price of $86.10, for a total value of $2,066,400.00. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director David M. Wathen sold 25,402 shares of Franklin Electric stock in a transaction that occurred on Monday, June 2nd. The shares were sold at an average price of $85.22, for a total value of $2,164,758.44. Following the completion of the transaction, the director owned 49,000 shares in the company, valued at $4,175,780. This trade represents a 34.14% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 99,402 shares of company stock worth $8,529,908 over the last quarter. Company insiders own 2.72% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the stock. NewEdge Advisors LLC grew its stake in shares of Franklin Electric by 30.6% in the 1st quarter. NewEdge Advisors LLC now owns 5,760 shares of the industrial products company's stock valued at $541,000 after purchasing an additional 1,349 shares during the last quarter. Royal Bank of Canada grew its holdings in Franklin Electric by 81.6% during the first quarter. Royal Bank of Canada now owns 3,997 shares of the industrial products company's stock worth $375,000 after acquiring an additional 1,796 shares during the period. United Services Automobile Association purchased a new stake in Franklin Electric during the first quarter worth $243,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in Franklin Electric by 8.6% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 137,162 shares of the industrial products company's stock worth $12,877,000 after purchasing an additional 10,862 shares in the last quarter. Finally, AQR Capital Management LLC lifted its position in shares of Franklin Electric by 105.5% in the first quarter. AQR Capital Management LLC now owns 25,463 shares of the industrial products company's stock valued at $2,390,000 after acquiring an additional 13,075 shares in the last quarter. 79.98% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on the company. Wall Street Zen raised Franklin Electric from a "hold" rating to a "buy" rating in a research report on Wednesday, May 14th. Robert W. Baird cut their price target on Franklin Electric from $111.00 to $94.00 and set a "neutral" rating on the stock in a research report on Wednesday, April 30th.

Franklin Electric announced that its Board of Directors has authorized a stock repurchase program on Friday, June 13th that allows the company to buyback 1,200,000 outstanding shares. This buyback authorization allows the industrial products company to reacquire shares of its stock through open market purchases. Shares buyback programs are generally a sign that the company's board believes its shares are undervalued.

About Franklin Electric

Franklin Electric Co, Inc, together with its subsidiaries, designs, manufactures, and distributes water and fuel pumping systems worldwide. The company operates through Water Systems, Fueling Systems, and Distribution segments. The Water Systems segment offers submersible motors, drives, pumps, electronic controls, water treatment systems, monitoring devices, and related parts and equipment.

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