Knowles (NYSE:KN) Sees Unusually-High Trading Volume Following Earnings Beat

Key Points

• Knowles beat Q2 expectations, reporting EPS of $0.33 versus $0.31 expected and revenue of $166.8 million versus $156.97 million estimated. Revenue rose 14.3% year over year, underscoring solid top-line growth.
• The company also raised its Q3 2026 outlook, guiding for EPS of $0.34 to $0.38 and revenue of $167 million to $177 million, both above consensus estimates. Management said results came in above the high end of guidance, suggesting improving execution.
• Knowles saw heavier trading interest after the earnings beat, with shares changing hands at elevated volume and the stock moving lower intraday. Separately, analysts largely remain cautious, with a consensus rating of “Hold” and an average target price of $40.67.

Knowles Corporation (NYSE:KN - Get Free Report) shares saw an uptick in trading volume on Friday following a stronger than expected earnings report. 815,577 shares changed hands during mid-day trading, a decline of 5% from the previous session's volume of 854,570 shares.The stock last traded at $37.0720 and had previously closed at $38.81.

The communications equipment provider reported $0.33 EPS for the quarter, topping analysts' consensus estimates of $0.31 by $0.02. Knowles had a net margin of 9.10% and a return on equity of 10.66%. The firm had revenue of $166.80 million during the quarter, compared to analyst estimates of $156.97 million. During the same quarter last year, the business posted $0.24 EPS. The company's revenue was up 14.3% on a year-over-year basis. Knowles has set its Q3 2026 guidance at 0.340-0.380 EPS.

Knowles News Summary

Here are the key news stories impacting Knowles this week:

• Positive Sentiment: Knowles reported Q2 2026 EPS of $0.33, topping estimates, while revenue of $166.8 million also beat expectations and rose 14.3% year over year. Knowles Reports Q2 2026 Financial Results and Provides Outlook for Q3 2026
• Positive Sentiment: The company raised its Q3 2026 outlook, guiding for EPS of $0.34 to $0.38 versus a $0.32 consensus and revenue of $167 million to $177 million versus $163.5 million expected. Knowles Reports Q2 2026 Financial Results and Provides Outlook for Q3 2026
• Positive Sentiment: Management said results came in above the high end of guidance, reinforcing a view of improving execution and demand trends. Knowles Corporation (KN) Q2 2026 Earnings Call Transcript
• Neutral Sentiment: Coverage items such as the earnings snapshot and “bullish” Q2 commentary largely restated the same earnings beat and guidance update, with no major new catalyst beyond the results themselves. Knowles: Q2 Earnings Snapshot

Analyst Ratings Changes

A number of brokerages recently commented on KN. Robert W. Baird set a $44.00 price objective on shares of Knowles in a research report on Friday. Craig Hallum reiterated a "buy" rating and issued a $38.00 target price on shares of Knowles in a research report on Friday, April 24th. Zacks Research cut shares of Knowles from a "strong-buy" rating to a "hold" rating in a report on Friday, June 26th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Knowles in a research note on Friday, May 22nd. Finally, Susquehanna reiterated a "neutral" rating and set a $40.00 price objective (up from $33.00) on shares of Knowles in a report on Friday. Two analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat, Knowles presently has a consensus rating of "Hold" and an average target price of $40.67.

Insider Buying and Selling

In other Knowles news, COO Daniel J. Giesecke sold 20,201 shares of the business's stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $37.32, for a total value of $753,901.32. Following the sale, the chief operating officer owned 175,855 shares of the company's stock, valued at $6,562,908.60. The trade was a 10.30% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jeffrey Niew sold 142,857 shares of the firm's stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $33.25, for a total transaction of $4,749,995.25. Following the transaction, the chief executive officer owned 883,719 shares of the company's stock, valued at approximately $29,383,656.75. This represents a 13.92% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 173,058 shares of company stock worth $5,809,156 in the last quarter. 2.24% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of KN. Insight Wealth Strategies LLC acquired a new position in Knowles during the 2nd quarter worth about $5,818,000. Rockland Trust Co. acquired a new stake in Knowles in the 2nd quarter valued at about $321,000. MassMutual Private Wealth & Trust FSB raised its stake in shares of Knowles by 35.9% in the second quarter. MassMutual Private Wealth & Trust FSB now owns 1,151 shares of the communications equipment provider's stock worth $48,000 after acquiring an additional 304 shares during the last quarter. Hilltop National Bank acquired a new position in shares of Knowles during the second quarter worth approximately $80,000. Finally, Pacer Advisors Inc. lifted its position in shares of Knowles by 5.3% during the first quarter. Pacer Advisors Inc. now owns 12,137 shares of the communications equipment provider's stock worth $312,000 after purchasing an additional 609 shares in the last quarter. Institutional investors own 96.35% of the company's stock.

Knowles Price Performance

The company has a debt-to-equity ratio of 0.17, a current ratio of 3.27 and a quick ratio of 1.77. The firm has a market capitalization of $3.16 billion, a P/E ratio of 58.07 and a beta of 1.59. The company's 50 day moving average price is $37.95 and its 200 day moving average price is $30.90.

About Knowles

Knowles Corporation NYSE: KN is a leading developer and manufacturer of advanced micro-acoustic, audio processing and precision device solutions. The company's product portfolio includes microelectromechanical systems (MEMS) microphones, balanced armature receivers, acoustic filters, and custom audio processing integrated circuits. These solutions are designed to enable clear speech, enhanced voice capture and intelligent audio performance in a variety of end markets.

Founded in 1946, Knowles has evolved from its roots in vacuum tube components to become a pure-play audio technology provider following its spin-off from Dover Corporation in 2014.

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