Forgent Power Solutions Sees Unusually Large Options Volume (NYSE:FPS)

Key Points

• Options activity surged: Traders purchased 21,324 call options in Forgent Power Solutions, roughly 286% above its typical daily call volume.
• Shares fell sharply: FPS declined $2.80 to $29.02, with the stock trading well below its 50-day and 200-day moving averages. The company has an $8.84 billion market capitalization and a P/E ratio of 194.05.
• Analyst sentiment remains generally positive: The stock has a consensus “Moderate Buy” rating and an average price target of $56.75, despite recent downgrades from Weiss Ratings and Zacks Research.

Forgent Power Solutions, Inc. (NYSE:FPS - Get Free Report) saw unusually large options trading on Monday. Stock traders purchased 21,324 call options on the stock. This represents an increase of approximately 286% compared to the typical daily volume of 5,519 call options.

Hedge Funds Weigh In On Forgent Power Solutions

Several hedge funds have recently added to or reduced their stakes in the business. Northwestern Mutual Wealth Management Co. purchased a new stake in shares of Forgent Power Solutions in the second quarter valued at about $30,000. Triumph Capital Management purchased a new position in shares of Forgent Power Solutions during the 2nd quarter worth approximately $39,000. IFP Advisors Inc acquired a new position in shares of Forgent Power Solutions during the 2nd quarter worth approximately $48,000. Hollencrest Capital Management purchased a new stake in Forgent Power Solutions in the 2nd quarter valued at approximately $56,000. Finally, Allworth Financial LP purchased a new stake in Forgent Power Solutions in the 2nd quarter valued at approximately $86,000.

Forgent Power Solutions Price Performance

Shares of FPS stock traded down $2.80 during mid-day trading on Monday, reaching $29.02. The stock had a trading volume of 5,346,929 shares, compared to its average volume of 6,052,981. Forgent Power Solutions has a 12-month low of $25.95 and a 12-month high of $66.00. The company has a market cap of $8.84 billion and a P/E ratio of 194.05. The business has a 50-day simple moving average of $36.27 and a 200 day simple moving average of $40.25. The company has a current ratio of 1.64, a quick ratio of 1.16 and a debt-to-equity ratio of 0.99.

Wall Street Analysts Forecast Growth

FPS has been the subject of several recent analyst reports. Morgan Stanley raised their price target on Forgent Power Solutions from $38.00 to $51.00 and gave the company an "equal weight" rating in a report on Sunday, May 17th. Weiss Ratings downgraded Forgent Power Solutions from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday, July 28th. Robert W. Baird started coverage on shares of Forgent Power Solutions in a research report on Wednesday, July 15th. They set an "outperform" rating and a $55.00 target price on the stock. Wolfe Research reaffirmed an "outperform" rating and set a $60.00 price target on shares of Forgent Power Solutions in a research note on Thursday, July 9th. Finally, Zacks Research cut shares of Forgent Power Solutions from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, September 8th. One equities research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $56.75.

About Forgent Power Solutions

Forgent Power Solutions, Inc develops and manufactures products used in electric power transmission and distribution infrastructure. Its offerings support the generation, transmission, distribution and management of electrical power for utility and industrial applications.

The company's product portfolio includes equipment and components used in overhead and underground power networks, including electrical connectors, fittings, line hardware and other engineered solutions designed to support the reliability and efficiency of power-delivery systems.

Forgent Power Solutions serves electric utilities, distributors and industrial customers, primarily through markets connected to North American power infrastructure.

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