Forgent Power Solutions (NYSE:FPS) Shares Gap Down - Should You Sell?

Key Points

• FPS shares fell sharply: The stock opened at $25.12 after closing at $27.14 and was last reported at $23.76, on volume of about 1.89 million shares.
• Analyst sentiment remains broadly positive: MarketBeat reports a “Moderate Buy” consensus and an average price target of $54.21, though ratings include two Holds and one Sell.
• Forgent reported quarterly EPS of $0.25, slightly above estimates, while revenue rose 94.3% year over year to $461.67 million. The company’s FY 2027 EPS guidance is $1.26–$1.40.

Forgent Power Solutions, Inc. (NYSE:FPS - Get Free Report) shares gapped down prior to trading on Wednesday. The stock had previously closed at $27.14, but opened at $25.12. Forgent Power Solutions shares last traded at $23.7570, with a volume of 1,887,368 shares trading hands.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on FPS. Zacks Research raised Forgent Power Solutions from a "hold" rating to a "strong-buy" rating in a report on Wednesday, October 7th. Robert W. Baird started coverage on Forgent Power Solutions in a report on Wednesday, July 15th. They issued an "outperform" rating and a $55.00 target price for the company. Wolfe Research restated an "outperform" rating and set a $60.00 price target on shares of Forgent Power Solutions in a research note on Thursday, July 9th. Wells Fargo & Company assumed coverage on Forgent Power Solutions in a research report on Thursday, September 24th. They set an "equal weight" rating and a $44.00 price target on the stock. Finally, JPMorgan Chase & Co. reduced their price objective on Forgent Power Solutions from $56.00 to $49.00 and set an "overweight" rating for the company in a research note on Friday, October 9th. Three investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $54.21.

Forgent Power Solutions Stock Performance

The stock has a market cap of $6.70 billion and a PE ratio of 56.66. The stock has a fifty day moving average of $33.13 and a 200-day moving average of $38.66. The company has a quick ratio of 1.07, a current ratio of 1.54 and a debt-to-equity ratio of 0.86.

Forgent Power Solutions (NYSE:FPS - Get Free Report) last posted its quarterly earnings data on Tuesday, September 15th. The company reported $0.25 earnings per share for the quarter, topping analysts' consensus estimates of $0.24 by $0.01. Forgent Power Solutions had a return on equity of 24.59% and a net margin of 5.76%. The company had revenue of $461.67 million during the quarter. The firm's revenue for the quarter was up 94.3% on a year-over-year basis. Forgent Power Solutions has set its FY 2027 guidance at 1.260-1.400 EPS. On average, equities analysts forecast that Forgent Power Solutions, Inc. will post 1.28 EPS for the current year.

Hedge Funds Weigh In On Forgent Power Solutions

Hedge funds and other institutional investors have recently bought and sold shares of the company. Northwestern Mutual Wealth Management Co. purchased a new position in Forgent Power Solutions during the 2nd quarter worth $30,000. City State Bank purchased a new stake in Forgent Power Solutions in the 3rd quarter valued at approximately $32,000. GAMMA Investing LLC increased its position in Forgent Power Solutions by 918.5% during the 3rd quarter. GAMMA Investing LLC now owns 937 shares of the company's stock worth $35,000 after purchasing an additional 845 shares during the period. Triumph Capital Management purchased a new position in shares of Forgent Power Solutions during the 2nd quarter worth approximately $39,000. Finally, WPG Advisers LLC raised its stake in shares of Forgent Power Solutions by 417.6% during the 3rd quarter. WPG Advisers LLC now owns 1,144 shares of the company's stock worth $43,000 after buying an additional 923 shares in the last quarter.

About Forgent Power Solutions

Forgent Power Solutions, Inc is a North American provider of equipment and services used in electrical power distribution. The company supports utilities, commercial and industrial customers, renewable-energy projects, data centers, and other infrastructure operators that require reliable systems for managing and distributing electricity.

Its offerings include power transformers, switchgear, substations, and related electrical distribution equipment. Forgent also provides engineering, field services, maintenance, repair, and other support intended to help customers install, operate, and extend the useful life of critical power infrastructure.

The company serves customers across the United States and Canada through its manufacturing, distribution, and service operations.

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