Forgent Power Solutions (NYSE:FPS) Trading Down 5.5% - Time to Sell?

Key Points

• Forgent Power Solutions shares fell 5.5% to about $37.29 in mid-day trading, with volume down 75% from its average.
• Analysts remain broadly positive, with a “Moderate Buy” consensus and an average price target of $57; recent firms raised targets as high as $76.
• The company slightly beat quarterly EPS estimates at $0.25 versus $0.24, while revenue surged 94.3% year over year to $461.67 million. However, its P/E ratio remains elevated at 251.65.

Forgent Power Solutions, Inc. (NYSE:FPS - Get Free Report) fell 5.5% during mid-day trading on Monday . The company traded as low as $37.63 and last traded at $37.2880. Approximately 1,608,823 shares changed hands during trading, a decline of 75% from the average daily volume of 6,517,895 shares. The stock had previously closed at $39.44.

Analyst Ratings Changes

A number of brokerages have weighed in on FPS. Weiss Ratings upgraded Forgent Power Solutions from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Thursday. KeyCorp reaffirmed an "overweight" rating on shares of Forgent Power Solutions in a research report on Wednesday. TD Cowen lifted their price target on Forgent Power Solutions from $73.00 to $76.00 and gave the stock a "buy" rating in a research note on Wednesday, September 16th. Oppenheimer reissued an "outperform" rating and issued a $60.00 price objective on shares of Forgent Power Solutions in a report on Wednesday, September 16th. Finally, Jefferies Financial Group increased their target price on Forgent Power Solutions from $44.00 to $56.00 and gave the stock a "buy" rating in a report on Friday, May 29th. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, Forgent Power Solutions currently has an average rating of "Moderate Buy" and an average target price of $57.00.

Forgent Power Solutions Stock Performance

The company has a current ratio of 1.54, a quick ratio of 1.07 and a debt-to-equity ratio of 0.86. The stock's 50-day moving average price is $35.14 and its 200-day moving average price is $40.24. The company has a market capitalization of $11.45 billion and a P/E ratio of 251.65.

Forgent Power Solutions (NYSE:FPS - Get Free Report) last posted its earnings results on Tuesday, September 15th. The company reported $0.25 EPS for the quarter, beating the consensus estimate of $0.24 by $0.01. The company 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%.The firm's revenue was up 94.3% compared to the same quarter last year. Forgent Power Solutions has set its FY 2027 guidance at 1.260-1.400 EPS. As a group, equities analysts expect that Forgent Power Solutions, Inc. will post 1.15 EPS for the current year.

Hedge Funds Weigh In On Forgent Power Solutions

Institutional investors have recently modified their holdings of the company. Northwestern Mutual Wealth Management Co. acquired a new stake in shares of Forgent Power Solutions in the 2nd quarter worth about $30,000. Triumph Capital Management bought a new position in Forgent Power Solutions in the 2nd quarter worth about $39,000. IFP Advisors Inc acquired a new stake in shares of Forgent Power Solutions in the second quarter valued at approximately $48,000. Hollencrest Capital Management bought a new stake in shares of Forgent Power Solutions during the second quarter valued at approximately $56,000. Finally, Allworth Financial LP acquired a new position in shares of Forgent Power Solutions during the second quarter worth approximately $86,000.

Forgent Power Solutions Company Profile

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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