Franklin Electric (NASDAQ:FELE) Shares Gap Down Following Weak Earnings

Franklin Electric Co., Inc. (NASDAQ:FELE)’s share price gapped down before the market opened on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $108.94, but opened at $98.32. Franklin Electric shares last traded at $96.70, with a volume of 125,840 shares changing hands.

The industrial products company reported $0.87 EPS for the quarter, missing the consensus estimate of $0.89 by ($0.02). The business had revenue of $506.86 million for the quarter, compared to analyst estimates of $516.25 million. Franklin Electric had a return on equity of 14.24% and a net margin of 6.71%.The company’s revenue for the quarter was up 4.4% on a year-over-year basis. During the same period in the prior year, the business earned $0.72 EPS. Franklin Electric has set its FY 2026 guidance at 4.400-4.600 EPS.

Franklin Electric Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, February 19th. Investors of record on Thursday, February 5th will be paid a dividend of $0.28 per share. This is an increase from Franklin Electric’s previous quarterly dividend of $0.27. This represents a $1.12 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend is Thursday, February 5th. Franklin Electric’s dividend payout ratio is presently 36.48%.

Wall Street Analyst Weigh In

Several research firms recently issued reports on FELE. Weiss Ratings restated a “hold (c)” rating on shares of Franklin Electric in a research report on Monday, December 29th. Robert W. Baird set a $112.00 price target on shares of Franklin Electric in a research report on Wednesday, October 29th. Finally, Wall Street Zen upgraded shares of Franklin Electric from a “hold” rating to a “buy” rating in a research note on Saturday, December 6th. Two investment analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $112.00.

Institutional Investors Weigh In On Franklin Electric

Institutional investors and hedge funds have recently bought and sold shares of the business. Quarry LP bought a new position in shares of Franklin Electric during the third quarter worth $28,000. Aster Capital Management DIFC Ltd bought a new stake in shares of Franklin Electric in the 4th quarter worth about $35,000. EverSource Wealth Advisors LLC grew its stake in shares of Franklin Electric by 31.2% during the second quarter. EverSource Wealth Advisors LLC now owns 425 shares of the industrial products company’s stock valued at $38,000 after buying an additional 101 shares during the last quarter. Farther Finance Advisors LLC lifted its position in shares of Franklin Electric by 213.1% during the fourth quarter. Farther Finance Advisors LLC now owns 454 shares of the industrial products company’s stock worth $43,000 after purchasing an additional 309 shares during the last quarter. Finally, MAI Capital Management increased its position in shares of Franklin Electric by 36.5% during the second quarter. MAI Capital Management now owns 490 shares of the industrial products company’s stock worth $44,000 after acquiring an additional 131 shares during the period. 79.98% of the stock is owned by institutional investors.

Franklin Electric Trading Down 12.3%

The company has a current ratio of 2.54, a quick ratio of 1.12 and a debt-to-equity ratio of 0.10. The stock has a 50-day simple moving average of $100.32 and a two-hundred day simple moving average of $97.10. The firm has a market capitalization of $4.25 billion, a P/E ratio of 31.13, a price-to-earnings-growth ratio of 1.93 and a beta of 1.08.

About Franklin Electric

Franklin Electric Co, Inc is a world‐leading manufacturer and distributor of systems and components for moving and managing water and fuel. Headquartered in Fort Wayne, Indiana, the company specializes in designing engineered pumping systems and related controls for residential, commercial and industrial applications.

Founded in 1944, Franklin Electric has built its reputation on submersible and surface pumping solutions for water wells, municipal water and wastewater treatment, irrigation and industrial fluid handling.