Forgent Power Solutions (NYSE:FPS) Shares Up 6.2% - Should You Buy?

Key Points

• FPS shares rose 6.2% to about $26.68 in mid-day trading, although trading volume was 78% below the stock’s average daily volume.
• Analyst sentiment is broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $54.21, substantially above the current share price.
• The company exceeded quarterly earnings expectations, reporting $0.25 EPS versus a $0.24 estimate and $461.67 million in revenue, up 94.3% year over year; institutional investors also increased or initiated positions.

Forgent Power Solutions, Inc. (NYSE:FPS - Get Free Report) shares rose 6.2% during mid-day trading on Tuesday. The company traded as high as $26.63 and last traded at $26.6770. 1,517,357 shares traded hands during trading, a decline of 78% from the average daily volume of 6,968,605 shares. The stock had previously closed at $25.12.

Wall Street Analyst Weigh In

FPS has been the subject of several research reports. KeyCorp reaffirmed an "overweight" rating on shares of Forgent Power Solutions in a research report on Wednesday, September 16th. Zacks Research upgraded shares of Forgent Power Solutions from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, October 7th. Sanford C. Bernstein began coverage on shares of Forgent Power Solutions in a research note on Friday, October 2nd. They issued an "outperform" rating and a $48.00 target price on the stock. Wells Fargo & Company initiated coverage on shares of Forgent Power Solutions in a research note on Thursday, September 24th. They set an "equal weight" rating and a $44.00 price target for the company. Finally, Robert W. Baird assumed 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. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $54.21.

Forgent Power Solutions Stock Up 6.9%

The firm has a 50 day moving average price of $34.34 and a 200-day moving average price of $39.14. The firm has a market cap of $8.18 billion and a price-to-earnings ratio of 68.70. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.54 and a quick ratio of 1.07.

Forgent Power Solutions (NYSE:FPS - Get Free Report) last announced its quarterly earnings data on Tuesday, September 15th. The company reported $0.25 earnings per share for the quarter, topping the consensus estimate of $0.24 by $0.01. The firm had revenue of $461.67 million during the quarter. Forgent Power Solutions had a return on equity of 24.59% and a net margin of 5.76%. Forgent Power Solutions'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, equities analysts predict that Forgent Power Solutions, Inc. will post 1.28 EPS for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Oppenheimer & Co. Inc. increased its holdings in Forgent Power Solutions by 62.7% in the third quarter. Oppenheimer & Co. Inc. now owns 25,512 shares of the company's stock valued at $955,000 after purchasing an additional 9,827 shares during the last quarter. Park Avenue Securities LLC boosted its holdings in Forgent Power Solutions by 19.2% during the third quarter. Park Avenue Securities LLC now owns 13,052 shares of the company's stock worth $489,000 after buying an additional 2,106 shares during the last quarter. Verdence Capital Advisors LLC acquired a new position in shares of Forgent Power Solutions during the 3rd quarter worth about $221,000. IVC Wealth Advisors LLC grew its position in shares of Forgent Power Solutions by 7.7% during the 3rd quarter. IVC Wealth Advisors LLC now owns 22,036 shares of the company's stock worth $825,000 after buying an additional 1,572 shares during the period. Finally, Inspire Investing LLC bought a new stake in shares of Forgent Power Solutions in the 3rd quarter valued at about $495,000.

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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