Franklin Electric (NASDAQ: FELE) has faced a significant shift in its stock rating, as research analysts at Wall Street Zen downgraded its status from “buy” to “hold” in a report issued on October 14, 2023. This change comes amid a broader analysis of the company’s financial performance and market conditions.
Other analysts have echoed similar sentiments, with Weiss Ratings reaffirming a “hold (C+)” rating for Franklin Electric on the same day. Additionally, Robert W. Baird established a target price of $112.00 for the stock. As of now, MarketBeat.com indicates that the stock holds an average rating of “hold” with a consensus target price of $112.00.
Current Stock Performance
On October 13, 2023, Franklin Electric shares opened at $94.77. The company’s market capitalization stands at $4.22 billion. Key financial indicators include a price-to-earnings ratio of 30.87, a PEG ratio of 1.91, and a beta of 1.08. The firm also reports a quick ratio of 0.77, a current ratio of 2.54, and a debt-to-equity ratio of 0.10. Over the past year, the stock has experienced a 52-week low of $78.87 and a high of $111.94.
The company recently reported its quarterly earnings on October 28, 2023, revealing an earnings per share (EPS) of $1.30, which surpassed the consensus estimate of $1.29 by $0.01. Revenue for the quarter reached $581.71 million, exceeding expectations of $563.18 million. This represents a year-over-year revenue increase of 9.5%, up from $1.17 EPS in the same quarter last year. For fiscal year 2025, Franklin Electric has set its guidance between $4.000 and $4.200 EPS, with analysts predicting an EPS of $4.19 for the current year.
Insider Transactions and Institutional Investment
In related news, insider Jonathan M. Grandon sold 10,036 shares of Franklin Electric on August 13, 2023. The shares were sold at an average price of $98.03, totaling $983,829.08. Following this transaction, Grandon retains ownership of 8,171 shares, valued at approximately $801,003.13, reflecting a 55.12% decrease in ownership. This transaction was disclosed in a legal filing with the Securities and Exchange Commission (SEC).
Institutional investors continue to play a significant role in Franklin Electric’s stock dynamics. For instance, EverSource Wealth Advisors LLC increased its holdings by 31.2% during the second quarter, now owning 425 shares valued at $38,000. Similarly, Fortress Financial Solutions LLC raised its stake by 2.5%, owning 4,546 shares valued at $408,000. GAMMA Investing LLC and Osaic Holdings Inc. also reported increases in their holdings, contributing to a robust institutional ownership of 79.98% of the company’s stock.
Franklin Electric Co., Inc. is recognized for designing, manufacturing, and distributing water and fuel pumping systems on a global scale. The company operates through diverse segments, including Water Systems, Fueling Systems, and Distribution, providing a wide range of products from submersible motors to water treatment systems.
As analysts continue to assess Franklin Electric’s market position, investors will be closely monitoring any further developments and adjustments to stock ratings.
