Franklin Electric Co.’s (FELE) “Buy” Rating Reiterated at Boenning Scattergood

Boenning Scattergood reissued their buy rating on shares of Franklin Electric Co., Inc. (NASDAQ:FELE) in a research report sent to investors on Tuesday. Boenning Scattergood also issued estimates for Franklin Electric Co.’s Q4 2017 earnings at $0.43 EPS, FY2017 earnings at $1.86 EPS, Q1 2018 earnings at $0.31 EPS, Q2 2018 earnings at $0.62 EPS, Q3 2018 earnings at $0.70 EPS, Q4 2018 earnings at $0.57 EPS and FY2018 earnings at $2.20 EPS.

“We rate shares of FELE Outperform, with our $54 target price (up from $52) reflecting a forward P/E multiple of 24.5 times, in-line with the water infrastructure peer group average. Key Points: 3Q17 EPS in-line with Street; Top-line beats, margins miss. Franklin Electric reported 3Q EPS of $0.52. Revenue increased 21.5% year/year, above our estimate of +14.5%, with both the Water and Fueling segments contributing to the upside. Organic sales growth drove the strength, continuing the recent trend of Franklin Electric delivering some of the best top-line growth in the water infrastructure sector. Despite the strong revenue gains, gross margin was 33.4% in the quarter, below our estimate of 34%, with management citing higher raw material costs as a profitability headwind.”,” Boenning Scattergood’s analyst commented.

Several other research firms have also commented on FELE. Zacks Investment Research upgraded Franklin Electric Co. from a sell rating to a hold rating and set a $45.00 price target for the company in a research report on Wednesday, July 26th. BidaskClub upgraded Franklin Electric Co. from a hold rating to a buy rating in a research report on Friday, June 30th. Finally, Robert W. Baird restated a hold rating and set a $45.00 price target on shares of Franklin Electric Co. in a research report on Wednesday, October 4th. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating and one has assigned a buy rating to the company. The company presently has a consensus rating of Hold and an average target price of $49.33.

Shares of Franklin Electric Co. (FELE) traded down 0.22% during midday trading on Tuesday, reaching $45.45. The company’s stock had a trading volume of 181,300 shares. Franklin Electric Co. has a one year low of $34.75 and a one year high of $46.95. The stock’s 50-day moving average is $43.51 and its 200-day moving average is $40.96. The company has a market capitalization of $2.11 billion, a P/E ratio of 24.70 and a beta of 1.63.

Franklin Electric Co. (NASDAQ:FELE) last released its quarterly earnings results on Tuesday, October 24th. The industrial products company reported $0.53 EPS for the quarter, topping the consensus estimate of $0.52 by $0.01. Franklin Electric Co. had a return on equity of 13.09% and a net margin of 8.13%. The business had revenue of $311.11 million during the quarter, compared to analyst estimates of $317.54 million. During the same period last year, the business posted $0.48 earnings per share. The company’s quarterly revenue was up 29.8% on a year-over-year basis. On average, equities analysts expect that Franklin Electric Co. will post $1.90 earnings per share for the current fiscal year.

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The business also recently announced a quarterly dividend, which will be paid on Thursday, November 16th. Investors of record on Thursday, November 2nd will be issued a $0.1075 dividend. The ex-dividend date is Wednesday, November 1st. This represents a $0.43 dividend on an annualized basis and a yield of 0.95%. Franklin Electric Co.’s dividend payout ratio (DPR) is presently 23.12%.

A number of large investors have recently added to or reduced their stakes in the stock. Parametrica Management Ltd purchased a new position in Franklin Electric Co. in the third quarter valued at $279,000. Crossmark Global Holdings Inc. purchased a new position in Franklin Electric Co. in the third quarter valued at $332,000. Vaughan Nelson Investment Management L.P. boosted its holdings in Franklin Electric Co. by 2.6% in the third quarter. Vaughan Nelson Investment Management L.P. now owns 1,302,225 shares of the industrial products company’s stock valued at $58,405,000 after purchasing an additional 33,400 shares during the period. Public Employees Retirement System of Ohio boosted its holdings in Franklin Electric Co. by 12.9% in the second quarter. Public Employees Retirement System of Ohio now owns 2,462 shares of the industrial products company’s stock valued at $102,000 after purchasing an additional 281 shares during the period. Finally, Piedmont Investment Advisors LLC purchased a new position in Franklin Electric Co. in the second quarter valued at $345,000. Hedge funds and other institutional investors own 77.02% of the company’s stock.

About Franklin Electric Co.

Franklin Electric Co, Inc designs, manufactures and distributes water and fuel pumping systems, consisting of submersible motors, pumps, electronic controls and related parts and equipment. Its segments include Water Systems segment, the Fueling Systems segment and Other. Its Water Systems segment is engaged in the production and marketing of water pumping systems and offers motors, pumps, drives, electronic controls and monitoring devices.

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