Knowles (NYSE:KN) Shares Cross Below Two Hundred Day Moving Average - Here's Why

Key Points

• Knowles shares fell below their 200-day moving average of $33.36 on Friday, trading as low as $32.65 and last changing hands at $33.008.
• The company beat quarterly expectations, reporting EPS of $0.38 versus $0.36 expected and revenue of $184 million versus $172.1 million; revenue rose 20.3% year over year.
• Analyst views were mixed, but the consensus rating was Moderate Buy with a $41 target price; Susquehanna cut its target to $35 and rated the stock Neutral.

Knowles Corporation (NYSE:KN - Get Free Report)'s stock price passed below its two hundred day moving average during trading on Friday. The stock has a two hundred day moving average of $33.36 and traded as low as $32.65. Knowles shares last traded at $33.0080, with a volume of 455,155 shares trading hands.

Analysts Set New Price Targets

KN has been the topic of several analyst reports. Wall Street Zen cut shares of Knowles from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 1st. Zacks Research raised shares of 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 price objective on shares of Knowles in a research note on Friday, October 23rd. Weiss Ratings lowered shares of Knowles from a "hold (c+)" rating to a "hold (c)" rating in a research report on Wednesday, November 4th. Finally, Susquehanna lowered their target price on shares of Knowles from $40.00 to $35.00 and set a "neutral" rating for the company in a research note on Wednesday, October 21st. One 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.com, Knowles has a consensus rating of "Moderate Buy" and a consensus target price of $41.00.

Knowles Stock Performance

The firm has a market capitalization of $2.80 billion, a PE ratio of 40.25 and a beta of 1.60. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.60 and a current ratio of 2.94. The company's fifty day moving average price is $35.28 and its two-hundred day moving average price is $33.36.

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

Insider Activity

In related news, Director Cheryl Shavers sold 6,618 shares of the company's stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $39.27, for a total transaction of $259,888.86. Following the sale, the director directly owned 35,723 shares of the company's stock, valued at approximately $1,402,842.21. This represents a 15.63% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 2.24% of the company's stock.

Hedge Funds Weigh In On Knowles

A number of hedge funds have recently added to or reduced their stakes in KN. BlackRock Inc. acquired a new stake in shares of Knowles during the second quarter worth $571,614,000. Andar Capital Management HK Ltd acquired a new position in shares of Knowles in the 2nd quarter valued at about $117,000,000. Barrow Hanley Mewhinney & Strauss LLC acquired a new position in shares of Knowles in the 2nd quarter valued at about $102,398,000. Royce & Associates LP grew its position in shares of Knowles by 3.2% during the 3rd quarter. Royce & Associates LP now owns 1,367,602 shares of the communications equipment provider's stock valued at $50,806,000 after buying an additional 42,243 shares during the last quarter. Finally, Conestoga Capital Advisors LLC grew its position in shares of Knowles by 41.6% during the 3rd quarter. Conestoga Capital Advisors LLC now owns 1,319,834 shares of the communications equipment provider's stock valued at $49,032,000 after buying an additional 387,785 shares during the last quarter. Institutional investors and hedge funds own 96.35% of the company's stock.

Knowles Company Profile

Knowles Corporation is a global supplier of advanced electronic components and acoustic solutions. Founded in 1946, the company began by developing microphones for hearing aids and has expanded into products for medical, industrial, defense, and other specialty markets. Knowles' offerings include components for hearing health and specialty audio, such as balanced armature receivers and microphones, as well as precision devices including capacitors and radio-frequency components. These products are used in applications where performance, reliability, and compact size are important.

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