Franklin Electric (NASDAQ:FELE) Shares Gap Down on Disappointing Earnings

Franklin Electric Co., Inc. (NASDAQ:FELE) gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $104.29, but opened at $100.26. Franklin Electric shares last traded at $101.29, with a volume of 25,060 shares changing hands.

The industrial products company reported $1.26 earnings per share for the quarter, missing analysts’ consensus estimates of $1.32 by ($0.06). The business had revenue of $543.30 million for the quarter, compared to the consensus estimate of $570.80 million. Franklin Electric had a net margin of 9.35% and a return on equity of 15.64%. The firm’s revenue for the quarter was down 4.6% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.27 EPS.

Franklin Electric Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, August 15th. Stockholders of record on Thursday, August 1st will be issued a dividend of $0.25 per share. The ex-dividend date is Thursday, August 1st. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.99%. Franklin Electric’s dividend payout ratio is currently 24.88%.

Wall Street Analysts Forecast Growth

FELE has been the topic of a number of research analyst reports. StockNews.com lowered shares of Franklin Electric from a “strong-buy” rating to a “buy” rating in a research note on Thursday, May 9th. DA Davidson raised their target price on shares of Franklin Electric from $87.00 to $90.00 and gave the company a “neutral” rating in a research note on Wednesday, May 1st.

Insiders Place Their Bets

In other Franklin Electric news, insider Jonathan M. Grandon sold 1,391 shares of the firm’s stock in a transaction on Thursday, June 6th. The shares were sold at an average price of $98.00, for a total value of $136,318.00. Following the sale, the insider now directly owns 18,103 shares in the company, valued at approximately $1,774,094. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. In other news, insider Delancey W. Davis sold 2,214 shares of the firm’s stock in a transaction dated Thursday, May 9th. The shares were sold at an average price of $102.06, for a total transaction of $225,960.84. Following the completion of the transaction, the insider now directly owns 8,014 shares of the company’s stock, valued at approximately $817,908.84. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Jonathan M. Grandon sold 1,391 shares of the firm’s stock in a transaction dated Thursday, June 6th. The stock was sold at an average price of $98.00, for a total transaction of $136,318.00. Following the transaction, the insider now directly owns 18,103 shares of the company’s stock, valued at $1,774,094. The disclosure for this sale can be found here. Company insiders own 2.72% of the company’s stock.

Hedge Funds Weigh In On Franklin Electric

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Louisiana State Employees Retirement System lifted its holdings in shares of Franklin Electric by 1.5% during the 2nd quarter. Louisiana State Employees Retirement System now owns 19,900 shares of the industrial products company’s stock worth $1,917,000 after acquiring an additional 300 shares during the period. Nisa Investment Advisors LLC lifted its holdings in shares of Franklin Electric by 2.3% during the 2nd quarter. Nisa Investment Advisors LLC now owns 11,973 shares of the industrial products company’s stock worth $1,153,000 after acquiring an additional 265 shares during the period. Vaughan Nelson Investment Management L.P. lifted its holdings in Franklin Electric by 6.4% during the 2nd quarter. Vaughan Nelson Investment Management L.P. now owns 361,654 shares of the industrial products company’s stock valued at $34,833,000 after purchasing an additional 21,890 shares during the last quarter. Assenagon Asset Management S.A. lifted its holdings in Franklin Electric by 116.5% during the 2nd quarter. Assenagon Asset Management S.A. now owns 165,601 shares of the industrial products company’s stock valued at $15,951,000 after purchasing an additional 89,128 shares during the last quarter. Finally, AlphaMark Advisors LLC bought a new position in shares of Franklin Electric in the second quarter worth about $303,000. 79.98% of the stock is owned by institutional investors.

Franklin Electric Stock Performance

The company has a market capitalization of $4.66 billion, a P/E ratio of 25.14, a P/E/G ratio of 1.95 and a beta of 0.96. The company has a debt-to-equity ratio of 0.07, a current ratio of 2.85 and a quick ratio of 1.17. The stock’s 50 day simple moving average is $97.98 and its two-hundred day simple moving average is $99.28.

About Franklin Electric

Franklin Electric Co, Inc, together with its subsidiaries, designs, manufactures, and distributes water and fuel pumping systems worldwide. The company operates through Water Systems, Fueling Systems, and Distribution segments. The Water Systems segment offers submersible motors, drives, pumps, electronic controls, water treatment systems, monitoring devices, and related parts and equipment.