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

Franklin Electric Co., Inc. (NASDAQ:FELE) 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 earnings per share for the quarter, missing the consensus estimate of $0.89 by ($0.02). The firm had revenue of $506.86 million during the quarter, compared to analysts’ expectations of $516.25 million. Franklin Electric had a net margin of 6.71% and a return on equity of 14.24%. The business’s revenue was up 4.4% compared to the same quarter last year. During the same quarter last 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 declared a quarterly dividend, which will be paid on Thursday, February 19th. Investors of record on Thursday, February 5th will be issued 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 currently 36.48%.

Analyst Ratings Changes

FELE has been the subject of a number of recent analyst reports. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Franklin Electric in a research report on Monday, December 29th. Wall Street Zen upgraded Franklin Electric from a “hold” rating to a “buy” rating in a report on Saturday, December 6th. Finally, Robert W. Baird set a $112.00 price target on Franklin Electric in a report on Wednesday, October 29th. Two analysts have rated the stock with a Hold rating, According to MarketBeat, Franklin Electric has a consensus rating of “Hold” and an average price target of $112.00.

Hedge Funds Weigh In On Franklin Electric

Several large investors have recently made changes to their positions in FELE. Norges Bank bought a new position in Franklin Electric in the fourth quarter valued at approximately $50,010,000. First Trust Advisors LP raised its position in Franklin Electric by 44.9% during the second quarter. First Trust Advisors LP now owns 1,552,097 shares of the industrial products company’s stock worth $139,285,000 after acquiring an additional 481,108 shares in the last quarter. Impax Asset Management Group plc raised its stake in Franklin Electric by 47.8% in the 2nd quarter. Impax Asset Management Group plc now owns 1,246,729 shares of the industrial products company’s stock valued at $111,881,000 after acquiring an additional 403,115 shares during the period. Amundi boosted its stake in Franklin Electric by 134.8% in the 3rd quarter. Amundi now owns 624,481 shares of the industrial products company’s stock valued at $59,424,000 after purchasing an additional 358,517 shares during the period. Finally, Fort Washington Investment Advisors Inc. OH bought a new stake in shares of Franklin Electric in the fourth quarter valued at approximately $27,266,000. Institutional investors and hedge funds own 79.98% of the company’s stock.

Franklin Electric Stock Performance

The stock’s fifty day moving average price is $100.32 and its two-hundred day moving average price is $97.10. The company has a debt-to-equity ratio of 0.10, a quick ratio of 1.12 and a current ratio of 2.54. The company has a market cap of $4.25 billion, a P/E ratio of 31.13, a P/E/G ratio of 1.93 and a beta of 1.08.

Franklin Electric Company Profile

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.