Forgent Power Solutions (NYSE:FPS) Shares Gap Up - Still a Buy?

Key Points

• Forgent Power Solutions shares rose 2.9%, opening at $28.48 after closing at $26.99, though the stock remained below its 50-day and 200-day moving averages.
• Analysts maintain a generally bullish view, with a consensus rating of “Moderate Buy” and an average price target of $54.21, despite Jefferies cutting its target to $36.
• The company exceeded quarterly EPS expectations and reported 94.3% year-over-year revenue growth to $461.67 million; institutional investors also made several sizable purchases of the stock.

Forgent Power Solutions, Inc. (NYSE:FPS - Get Free Report) shares gapped up prior to trading on Wednesday. The stock had previously closed at $26.99, but opened at $28.48. Forgent Power Solutions shares last traded at $27.8230, with a volume of 1,078,000 shares traded.

Analyst Ratings Changes

A number of research analysts have weighed in on FPS shares. Morgan Stanley set a $45.00 price objective on shares of Forgent Power Solutions in a research report on Friday, October 16th. Oppenheimer restated an "outperform" rating and issued a $60.00 target price on shares of Forgent Power Solutions in a report on Wednesday, September 16th. Robert W. Baird assumed coverage on shares of Forgent Power Solutions in a research note on Wednesday, July 15th. They set an "outperform" rating and a $55.00 price target for the company. Jefferies Financial Group cut their price target on shares of Forgent Power Solutions from $47.00 to $36.00 and set a "buy" rating on the stock in a report on Friday. Finally, TD Cowen increased their price objective on shares of Forgent Power Solutions from $73.00 to $76.00 and gave the stock a "buy" rating in a research report on Wednesday, September 16th. Three research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Forgent Power Solutions currently has an average rating of "Moderate Buy" and a consensus price target of $54.21.

Forgent Power Solutions Stock Up 2.9%

The stock has a market capitalization of $8.46 billion and a PE ratio of 70.87. The stock's 50 day moving average price is $33.82 and its 200-day moving average price is $38.99.

Forgent Power Solutions (NYSE:FPS - Get Free Report) last posted its quarterly earnings results on Tuesday, September 15th. The company reported $0.25 EPS for the quarter, topping the consensus estimate of $0.24 by $0.01. The company had revenue of $461.67 million during the quarter. The company's quarterly revenue 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. As a group, sell-side analysts predict that Forgent Power Solutions, Inc. will post 1.28 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Forgent Power Solutions

A number of institutional investors have recently modified their holdings of the stock. Value Aligned Research Advisors LLC bought a new position in Forgent Power Solutions in the second quarter worth approximately $176,441,000. State Street Corp bought a new position in shares of Forgent Power Solutions during the 2nd quarter worth $118,073,000. Assenagon Asset Management S.A. grew its position in shares of Forgent Power Solutions by 177.9% during the 3rd quarter. Assenagon Asset Management S.A. now owns 1,900,452 shares of the company's stock worth $71,153,000 after buying an additional 1,216,571 shares in the last quarter. Spyglass Capital Management LLC purchased a new position in shares of Forgent Power Solutions during the second quarter valued at $39,401,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC purchased a new position in shares of Forgent Power Solutions during the second quarter valued at $23,123,000.

Forgent Power Solutions Company Profile

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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