Zacks Investment Research Upgrades Franklin Electric (NASDAQ:FELE) to Buy

Zacks Investment Research upgraded shares of Franklin Electric (NASDAQ:FELE) from a hold rating to a buy rating in a research note published on Wednesday, Zacks.com reports. They currently have $108.00 target price on the industrial products company’s stock.

According to Zacks, “Franklin Electric is a global leader in the production and marketing of systems and components for the movement of water and automotive fuels. Franklin Electric has produced high-quality industrial pumps, filters and accessories. By introducing the new Little Giant PondWorks program, Franklin Electric now brings the same exceptional knowledge, experience, and quality to the recreational water gardening and outdoor living markets. “

Shares of Franklin Electric stock opened at $95.29 on Wednesday. The company has a current ratio of 1.81, a quick ratio of 0.83 and a debt-to-equity ratio of 0.10. Franklin Electric has a 12-month low of $66.97 and a 12-month high of $96.95. The firm has a market capitalization of $4.42 billion, a price-to-earnings ratio of 32.08 and a beta of 0.97. The firm’s 50 day simple moving average is $86.90 and its two-hundred day simple moving average is $83.78.

Franklin Electric (NASDAQ:FELE) last issued its quarterly earnings results on Monday, October 25th. The industrial products company reported $0.98 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.90 by $0.08. Franklin Electric had a net margin of 9.03% and a return on equity of 15.85%. The business had revenue of $459.00 million for the quarter, compared to analyst estimates of $432.68 million. During the same quarter in the prior year, the business posted $0.83 EPS. Franklin Electric’s revenue for the quarter was up 30.7% compared to the same quarter last year. On average, sell-side analysts predict that Franklin Electric will post 3.04 EPS for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, November 18th. Stockholders of record on Thursday, November 4th were issued a $0.175 dividend. This represents a $0.70 annualized dividend and a dividend yield of 0.73%. The ex-dividend date was Wednesday, November 3rd. Franklin Electric’s dividend payout ratio (DPR) is currently 23.57%.

In other news, CFO John J. Haines sold 3,000 shares of the stock in a transaction dated Monday, November 1st. The shares were sold at an average price of $86.09, for a total value of $258,270.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Gregg C. Sengstack sold 6,782 shares of the stock in a transaction dated Friday, October 29th. The shares were sold at an average price of $86.04, for a total transaction of $583,523.28. The disclosure for this sale can be found here. Insiders sold a total of 16,654 shares of company stock worth $1,446,505 over the last ninety days. Insiders own 2.90% of the company’s stock.

A number of institutional investors have recently added to or reduced their stakes in the stock. Bank of New York Mellon Corp increased its position in Franklin Electric by 1.6% during the third quarter. Bank of New York Mellon Corp now owns 465,763 shares of the industrial products company’s stock worth $37,192,000 after purchasing an additional 7,503 shares during the last quarter. BNP Paribas Arbitrage SA increased its position in Franklin Electric by 159.6% during the third quarter. BNP Paribas Arbitrage SA now owns 45,720 shares of the industrial products company’s stock worth $3,651,000 after purchasing an additional 28,111 shares during the last quarter. Janus Henderson Group PLC acquired a new stake in Franklin Electric during the third quarter worth about $317,000. UBS Group AG increased its position in Franklin Electric by 111.0% during the third quarter. UBS Group AG now owns 26,601 shares of the industrial products company’s stock worth $2,124,000 after purchasing an additional 13,994 shares during the last quarter. Finally, Wellington Management Group LLP increased its position in Franklin Electric by 12.4% during the third quarter. Wellington Management Group LLP now owns 140,179 shares of the industrial products company’s stock worth $11,193,000 after purchasing an additional 15,417 shares during the last quarter. Hedge funds and other institutional investors own 77.17% of the company’s stock.

About Franklin Electric

Franklin Electric Co, Inc engages in the development, manufacture, and distribution of water and fuel pumping systems. It operates through the following business segments: Water Systems, Fueling Systems, and Distribution. The Water Systems segment designs, manufactures, and sells water pumping systems, submersible motors, pumps, electronic controls, and related parts and equipment.

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