Kimball Electronics (NASDAQ:KE) Shares Gap Up After Analyst Upgrade

Key Points

• Kimball Electronics' shares gapped up at the market open on Monday, moving from a previous close of $25.82 to an opening price of $27.72, and last traded at $26.86 with a trading volume of 140,908 shares.
• Analysts have shown increased confidence in Kimball Electronics, with B. Riley and Lake Street Capital both reiterating "buy" ratings and Lake Street raising its target price to $28.00, while Wall Street Zen upgraded the stock to a "strong-buy" status.
• The company reported better-than-expected earnings of $0.34 per share on revenue of $380.47 million, surpassing analysts' forecasts and suggesting strong financial performance for the current fiscal year.

Shares of Kimball Electronics, Inc. (NASDAQ:KE - Get Free Report) gapped up prior to trading on Monday after Wall Street Zen upgraded the stock from a buy rating to a strong-buy rating. The stock had previously closed at $25.82, but opened at $27.72. Kimball Electronics shares last traded at $26.86, with a volume of 140,908 shares trading hands.

A number of other brokerages also recently issued reports on KE. Lake Street Capital increased their price target on shares of Kimball Electronics from $21.00 to $28.00 and gave the stock a "buy" rating in a report on Friday, August 15th. B. Riley reaffirmed a "buy" rating on shares of Kimball Electronics in a report on Thursday, August 14th. Two analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the company presently has an average rating of "Buy" and an average target price of $28.00.

Institutional Investors Weigh In On Kimball Electronics

A number of hedge funds have recently modified their holdings of the business. American Century Companies Inc. raised its position in shares of Kimball Electronics by 18.6% in the second quarter. American Century Companies Inc. now owns 698,414 shares of the electronics maker's stock valued at $13,431,000 after buying an additional 109,553 shares during the last quarter. Earnest Partners LLC raised its position in shares of Kimball Electronics by 10.3% in the first quarter. Earnest Partners LLC now owns 691,417 shares of the electronics maker's stock valued at $11,374,000 after buying an additional 64,307 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its position in shares of Kimball Electronics by 70.1% in the second quarter. Arrowstreet Capital Limited Partnership now owns 411,921 shares of the electronics maker's stock valued at $7,921,000 after buying an additional 169,735 shares during the last quarter. Envestnet Asset Management Inc. raised its position in shares of Kimball Electronics by 3.2% in the second quarter. Envestnet Asset Management Inc. now owns 350,253 shares of the electronics maker's stock valued at $6,735,000 after buying an additional 11,023 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. raised its position in shares of Kimball Electronics by 34.6% in the first quarter. Charles Schwab Investment Management Inc. now owns 300,694 shares of the electronics maker's stock valued at $4,946,000 after buying an additional 77,272 shares during the last quarter. 75.99% of the stock is currently owned by institutional investors and hedge funds.

Kimball Electronics Price Performance

The stock's 50-day moving average price is $20.47 and its 200 day moving average price is $17.91. The firm has a market capitalization of $690.93 million, a price-to-earnings ratio of 42.30 and a beta of 1.22. The company has a quick ratio of 1.24, a current ratio of 2.14 and a debt-to-equity ratio of 0.27.

Kimball Electronics (NASDAQ:KE - Get Free Report) last issued its earnings results on Wednesday, August 13th. The electronics maker reported $0.34 EPS for the quarter, beating analysts' consensus estimates of $0.20 by $0.14. Kimball Electronics had a net margin of 1.14% and a return on equity of 5.17%. The business had revenue of $380.47 million during the quarter, compared to analysts' expectations of $333.19 million. Kimball Electronics has set its FY 2025 guidance at EPS. Equities research analysts expect that Kimball Electronics, Inc. will post 0.89 earnings per share for the current fiscal year.

Kimball Electronics Company Profile

Kimball Electronics, Inc engages in the provision of electronics manufacturing, engineering, and supply chain support services to customers in the automotive, medical, and industrial end markets. The Company also offers contract manufacturing services, including engineering and supply chain support for the production of electronic assemblies and other products, including non-electronic components, medical devices, medical disposables, and precision molded plastics, as well as automation, test, and inspection equipment primarily used in automotive, medical, and industrial applications.