Franklin Electric Shares Rise Following Strong Earnings Report

Franklin Electric Co., Inc. (NASDAQ:FELE) saw its stock price increase by 7.4% during mid-day trading on Tuesday. This rise followed the company’s announcement of quarterly earnings that exceeded analysts' expectations. At its peak, the stock reached $108.08, ultimately closing at $107.35. During this trading session, approximately 47,798 shares were traded, a significant drop of 73% compared to the average daily volume of 176,373 shares. The previous closing price for the stock was $99.98.

The company reported earnings of $0.72 per share for the quarter, which was better than the consensus estimate of $0.69 per share, surpassing expectations by $0.03. Franklin Electric achieved a return on equity of 15.03% and a net margin of 9.22%.

Dividend Announcement

In addition to its earnings report, Franklin Electric announced an increase in its quarterly dividend. Shareholders of record on February 6th will receive a dividend of $0.265 per share, which is an increase from the prior quarterly dividend of $0.25. The ex-dividend date for this payment is set for February 6th, representing an annual dividend of $1.06 and a yield of 1.00%. Currently, the company has a payout ratio of 26.84%.

Analyst Ratings

On a related note, Robert W. Baird recently adjusted its target price for Franklin Electric shares, lowering it from $107.00 to $105.00 while maintaining a "neutral" rating.

Institutional Investment Activity

Several institutional investors have either increased or decreased their holdings in Franklin Electric recently. For example, CWM LLC grew its position in the company by 16.7% during the third quarter, now owning 684 shares worth $72,000 after purchasing an additional 98 shares. Similarly, Blue Trust Inc. increased its stake by 55.7%, owning 299 shares valued at $29,000 after buying 107 shares in the last quarter. Other investment firms, such as Signaturefd LLC, also boosted their holdings, with Signaturefd now owning 712 shares worth $75,000. In total, institutional investors and hedge funds hold approximately 79.98% of Franklin Electric’s shares.

Company Financials

Franklin Electric has a debt-to-equity ratio of 0.01, a quick ratio of 1.06, and a current ratio of 2.40. The company's market capitalization stands at approximately $4.84 billion, with a price-to-earnings (P/E) ratio of 26.84 and a price-to-earnings growth (PEG) ratio of 1.97. As for stock performance, its 50-day moving average is $99.39, while its 200-day moving average is $101.54.

Overview of Franklin Electric

Franklin Electric Co., Inc. designs, manufactures, and distributes water and fuel pumping systems across the globe. The company operates in three segments: Water Systems, Fueling Systems, and Distribution. The Water Systems segment provides a range of products including submersible motors, drives, pumps, electronic controls, water treatment systems, monitoring devices, and related components.

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Franklin, Electric, Earnings