Franklin Electric (NASDAQ:FELE) to Repurchase 1,200,000 Shares

Franklin Electric (NASDAQ:FELE - Get Free Report) declared that its Board of Directors has initiated a stock repurchase program on Friday, June 13th, RTT News reports. The company plans to buyback 1,200,000 shares. This buyback authorization authorizes the industrial products company to purchase shares of its stock through open market purchases. Stock buyback programs are usually a sign that the company's board believes its shares are undervalued.

Franklin Electric Stock Performance

Shares of FELE stock traded up $1.96 during trading hours on Monday, hitting $86.57. 232,168 shares of the company were exchanged, compared to its average volume of 212,196. The company has a current ratio of 2.22, a quick ratio of 1.06 and a debt-to-equity ratio of 0.01. The firm has a fifty day simple moving average of $87.31 and a 200 day simple moving average of $95.21. Franklin Electric has a 52-week low of $78.87 and a 52-week high of $111.94. The stock has a market capitalization of $3.95 billion, a price-to-earnings ratio of 22.49, a P/E/G ratio of 2.11 and a beta of 1.08.

Franklin Electric (NASDAQ:FELE - Get Free Report) last issued its quarterly earnings data on Tuesday, April 29th. The industrial products company reported $0.67 EPS for the quarter, missing the consensus estimate of $0.73 by ($0.06). Franklin Electric had a net margin of 8.92% and a return on equity of 14.46%. The firm had revenue of $455.25 million for the quarter, compared to analysts' expectations of $471.21 million. During the same period in the prior year, the firm posted $0.70 EPS. Franklin Electric's revenue was down 1.2% on a year-over-year basis. Research analysts predict that Franklin Electric will post 4.19 earnings per share for the current fiscal year.

Franklin Electric Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, May 22nd. Stockholders of record on Thursday, May 8th were issued a $0.265 dividend. This represents a $1.06 annualized dividend and a dividend yield of 1.22%. The ex-dividend date was Thursday, May 8th. Franklin Electric's dividend payout ratio is 27.75%.

Wall Street Analyst Weigh In

Several research analysts recently issued reports 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 reduced their price objective on Franklin Electric from $111.00 to $94.00 and set a "neutral" rating for the company in a research note on Wednesday, April 30th.

Insider Activity

In other news, Director David M. Wathen sold 24,000 shares of the company's stock in a transaction dated Wednesday, June 4th. The stock was sold at an average price of $86.10, for a total value of $2,066,400.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director David M. Wathen sold 25,402 shares of Franklin Electric stock in a transaction dated Monday, June 2nd. The stock was sold at an average price of $85.22, for a total value of $2,164,758.44. Following the completion of the sale, the director now directly owns 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. Over the last ninety days, insiders sold 99,402 shares of company stock valued at $8,529,908. Insiders own 2.72% of the company's stock.

Franklin Electric Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.