Knowles (NYSE:KN) Shares Break Below 200 Day Moving Average - What's Next?

Key Points

• Knowles shares fell below their 200-day moving average of $33.10, trading as low as $30.22 and last changing hands at about $30.34.
• Analyst views are mixed, but the consensus remains “Moderate Buy” with an average price target of $41.00; targets include Baird’s $50 and Susquehanna’s revised $35.
• Knowles beat quarterly expectations, reporting EPS of $0.38 versus $0.36 expected and revenue of $184 million versus $172.1 million expected; revenue increased 20.3% year over year.

Shares of Knowles Corporation (NYSE:KN - Get Free Report) crossed below its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $33.10 and traded as low as $30.22. Knowles shares last traded at $30.3420, with a volume of 1,128,301 shares.

Analysts Set New Price Targets

Several equities analysts have recently commented on the company. Zacks Research upgraded Knowles from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, October 28th. Robert W. Baird set a $50.00 target price on Knowles in a research report on Friday, October 23rd. Susquehanna dropped their target price on Knowles from $40.00 to $35.00 and set a "neutral" rating for the company in a research report on Wednesday, October 21st. Wall Street Zen lowered Knowles from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 1st. Finally, Weiss Ratings cut shares of Knowles from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, October 23rd. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $41.00.

Knowles Price Performance

The firm's 50 day simple moving average is $35.46 and its two-hundred day simple moving average is $33.10. The company has a debt-to-equity ratio of 0.15, a current ratio of 2.94 and a quick ratio of 1.60. The firm has a market capitalization of $2.57 billion, a P/E ratio of 37.00 and a beta of 1.60.

Knowles (NYSE:KN - Get Free Report) last announced its quarterly earnings data on Thursday, October 22nd. The communications equipment provider reported $0.38 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.36 by $0.02. The firm had revenue of $184.00 million for the quarter, compared to analysts' expectations of $172.10 million. Knowles had a return on equity of 11.82% and a net margin of 10.76%. The company's revenue for the quarter was up 20.3% compared to the same quarter last year. During the same period last year, the firm earned $0.33 earnings per share. As a group, analysts predict that Knowles Corporation will post 1.10 earnings per share for the current year.

Insider Buying and Selling

In other Knowles news, Director Cheryl Shavers sold 6,618 shares of Knowles stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $39.27, for a total value of $259,888.86. Following the transaction, the director directly owned 35,723 shares of the company's stock, valued at $1,402,842.21. The trade was a 15.63% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.24% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Millstone Evans Group LLC boosted its holdings in Knowles by 212.9% in the first quarter. Millstone Evans Group LLC now owns 973 shares of the communications equipment provider's stock valued at $25,000 after acquiring an additional 662 shares in the last quarter. MassMutual Private Wealth & Trust FSB raised its holdings in Knowles by 35.9% in the 2nd quarter. MassMutual Private Wealth & Trust FSB now owns 1,151 shares of the communications equipment provider's stock worth $48,000 after purchasing an additional 304 shares in the last quarter. Meeder Asset Management Inc. bought a new position in Knowles in the 1st quarter worth $51,000. Integrated Wealth Concepts LLC purchased a new stake in shares of Knowles in the 2nd quarter worth about $55,000. Finally, Farther Finance Advisors LLC lifted its position in shares of Knowles by 23.6% in the 3rd quarter. Farther Finance Advisors LLC now owns 1,479 shares of the communications equipment provider's stock worth $55,000 after purchasing an additional 282 shares during the period. 96.35% of the stock is owned by hedge funds and other institutional investors.

About Knowles

Knowles Corporation NYSE: KN is a global manufacturer of advanced electronic components and solutions for audio, communications, medical, industrial and other specialized applications. The company develops products that support sound capture, audio processing, signal management and high-performance connectivity in a range of electronic devices and systems.

Its portfolio includes microelectromechanical systems (MEMS) microphones, audio processors, speakers, receivers, balanced armature drivers and other acoustic components.

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