Franklin Electric (NASDAQ:FELE) Share Price Breaks Above 50 Day Moving Average - Should You Sell?

Key Points

• Franklin Electric shares rose above their 50-day moving average, trading at $98.88 after reaching $99.03; the 50-day average was $97.86.
• Analyst views were mixed, but MarketBeat reported an overall “Moderate Buy” rating and an average price target of $132.50. DA Davidson raised its target to $135 and upgraded the stock to Buy.
• The company beat quarterly estimates, reporting EPS of $1.50 versus $1.40 expected and revenue of $633.62 million, up 8.9% year over year. It also announced a $0.28 quarterly dividend, equal to a 1.1% yield.

Franklin Electric Co., Inc. (NASDAQ:FELE - Get Free Report)'s stock price passed above its 50-day moving average during trading on Wednesday. The stock has a 50-day moving average of $97.86 and traded as high as $99.03. Franklin Electric shares last traded at $98.88, with a volume of 287,110 shares traded.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on the stock. DA Davidson raised shares of Franklin Electric from a "neutral" rating to a "buy" rating and raised their price objective for the stock from $105.00 to $135.00 in a report on Monday, November 2nd. Wall Street Zen cut shares of Franklin Electric from a "buy" rating to a "hold" rating in a report on Monday, November 2nd. Zacks Research upgraded shares of Franklin Electric from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, November 3rd. Weiss Ratings cut shares of Franklin Electric from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Thursday, October 29th. Finally, Robert W. Baird set a $130.00 price target on shares of Franklin Electric in a research note on Thursday, October 29th. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $132.50.

Franklin Electric Stock Up 1.2%

The company has a fifty day moving average price of $97.86 and a 200-day moving average price of $100.10. The stock has a market capitalization of $4.37 billion, a P/E ratio of 22.22, a PEG ratio of 1.71 and a beta of 1.02. The company has a quick ratio of 1.12, a current ratio of 2.33 and a debt-to-equity ratio of 0.30.

Franklin Electric (NASDAQ:FELE - Get Free Report) last posted its earnings results on Wednesday, October 28th. The industrial products company reported $1.50 earnings per share for the quarter, beating analysts' consensus estimates of $1.40 by $0.10. Franklin Electric had a net margin of 8.83% and a return on equity of 15.45%. The firm had revenue of $633.62 million during the quarter, compared to analyst estimates of $617.19 million. During the same period last year, the firm posted $1.30 earnings per share. Franklin Electric's revenue for the quarter was up 8.9% compared to the same quarter last year. As a group, research analysts forecast that Franklin Electric Co., Inc. will post 4.77 EPS for the current fiscal year.

Franklin Electric Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, November 19th. Stockholders of record on Thursday, November 5th will be issued a $0.28 dividend. The ex-dividend date is Thursday, November 5th. This represents a $1.12 dividend on an annualized basis and a dividend yield of 1.1%. Franklin Electric's payout ratio is 25.17%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Caisse de depot et placement du Quebec bought a new position in shares of Franklin Electric during the 2nd quarter valued at approximately $1,694,000. Gamco Investors INC. ET AL raised its holdings in Franklin Electric by 4.4% during the 1st quarter. Gamco Investors INC. ET AL now owns 256,624 shares of the industrial products company's stock valued at $23,653,000 after buying an additional 10,858 shares during the period. Principal Financial Group Inc. lifted its position in Franklin Electric by 4.8% in the first quarter. Principal Financial Group Inc. now owns 224,135 shares of the industrial products company's stock worth $20,659,000 after buying an additional 10,325 shares during the last quarter. Engineers Gate Manager LP raised its stake in shares of Franklin Electric by 687.1% in the second quarter. Engineers Gate Manager LP now owns 32,666 shares of the industrial products company's stock valued at $3,501,000 after acquiring an additional 28,516 shares during the period. Finally, Fort Washington Investment Advisors Inc. OH raised its stake in shares of Franklin Electric by 18.4% in the third quarter. Fort Washington Investment Advisors Inc. OH now owns 332,387 shares of the industrial products company's stock valued at $31,873,000 after acquiring an additional 51,541 shares during the period. Hedge funds and other institutional investors own 79.98% of the company's stock.

About Franklin Electric

Franklin Electric is a global manufacturer of systems and components used to move water and fuel. Founded in 1944 and headquartered in Fort Wayne, Indiana, the company serves residential, commercial, agricultural, municipal and industrial markets. Its water-related products include submersible motors and pumps, groundwater and wastewater systems, water treatment equipment, and controls and drives. Franklin Electric also supplies pumping and related equipment for applications such as pressure boosting, irrigation and dewatering.

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