Kimball Electronics (NASDAQ:KE) Shares Break Above 50 Day Moving Average - Should You Sell?

Key Points

• Kimball Electronics shares moved above their 50-day moving average, reaching $26.59 and last trading at $26.22, compared with a 50-day average of $25.83.
• Analyst sentiment is generally positive, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $32.00, although ratings range from Strong Buy to Hold.
• The company’s latest quarterly results missed expectations, reporting a loss of $0.01 per share versus a projected $0.39 profit and revenue of $371.57 million versus estimates of $373.63 million.

Kimball Electronics, Inc. (NASDAQ:KE - Get Free Report) shares passed above its 50-day moving average during trading on Monday. The stock has a 50-day moving average of $25.83 and traded as high as $26.59. Kimball Electronics shares last traded at $26.22, with a volume of 185,515 shares traded.

Wall Street Analyst Weigh In

KE has been the subject of several recent analyst reports. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of Kimball Electronics in a research note on Monday, October 12th. Wall Street Zen lowered shares of Kimball Electronics from a "buy" rating to a "hold" rating in a report on Saturday, July 4th. Zacks Research raised Kimball Electronics from a "hold" rating to a "strong-buy" rating in a research note on Monday, July 6th. Weiss Ratings reiterated a "hold (c)" rating on shares of Kimball Electronics in a report on Tuesday, August 4th. Finally, KeyCorp began coverage on Kimball Electronics in a research report on Thursday, July 2nd. They issued a "sector weight" rating for the company. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $32.00.

Kimball Electronics Price Performance

The company has a debt-to-equity ratio of 0.18, a current ratio of 2.09 and a quick ratio of 1.27. The firm has a market cap of $629.02 million, a P/E ratio of 23.20, a PEG ratio of 1.02 and a beta of 1.24. The stock's 50-day simple moving average is $25.83 and its two-hundred day simple moving average is $25.56.

Kimball Electronics (NASDAQ:KE - Get Free Report) last announced its quarterly earnings data on Wednesday, August 12th. The electronics maker reported ($0.01) EPS for the quarter, missing the consensus estimate of $0.39 by ($0.40). Kimball Electronics had a net margin of 1.95% and a return on equity of 4.41%. The business had revenue of $371.57 million during the quarter, compared to the consensus estimate of $373.63 million. Equities research analysts forecast that Kimball Electronics, Inc. will post 1.27 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Public Employees Retirement System of Ohio purchased a new position in shares of Kimball Electronics during the 2nd quarter valued at about $29,000. GAMMA Investing LLC boosted its stake in shares of Kimball Electronics by 36.0% during the 3rd quarter. GAMMA Investing LLC now owns 1,707 shares of the electronics maker's stock worth $47,000 after acquiring an additional 452 shares in the last quarter. Northwestern Mutual Wealth Management Co. purchased a new position in shares of Kimball Electronics in the 2nd quarter valued at about $50,000. Parallel Advisors LLC grew its holdings in Kimball Electronics by 122.8% in the first quarter. Parallel Advisors LLC now owns 2,324 shares of the electronics maker's stock valued at $55,000 after purchasing an additional 1,281 shares during the period. Finally, Quantbot Technologies LP acquired a new position in shares of Kimball Electronics during the 2nd quarter worth approximately $55,000. Hedge funds and other institutional investors own 75.99% of the company's stock.

Kimball Electronics Company Profile

Kimball Electronics, Inc is a contract manufacturer that provides electronic manufacturing services, engineering support and supply-chain solutions for original equipment manufacturers. The company helps customers design, build, test and manage products ranging from circuit-board assemblies to complete, integrated systems.

Kimball Electronics serves a diverse group of markets, including automotive, medical, industrial and public safety applications. Its capabilities include printed circuit board assembly, box-build and system integration, prototyping, product testing, tooling, automation and other manufacturing services.

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