Knowles (NYSE:KN) Shares Gap Up After Strong Earnings

Shares of Knowles Corporation (NYSE:KN) gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $33.38, but opened at $34.67. Knowles shares last traded at $33.4350, with a volume of 190,421 shares changing hands.

The communications equipment provider reported $0.38 earnings per share for the quarter, beating analysts’ consensus estimates of $0.36 by $0.02. The business had revenue of $184.00 million for the quarter, compared to analysts’ expectations of $172.10 million. Knowles had a net margin of 10.63% and a return on equity of 11.45%. The business’s revenue was up 20.3% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.33 earnings per share.

Key Headlines Impacting Knowles

Here are the key news stories impacting Knowles this week:

• Positive Sentiment: Knowles reported third-quarter 2026 EPS of $0.38, ahead of the $0.36 consensus estimate, while revenue reached $184.0 million versus expectations of approximately $172.1 million. Revenue increased 20.3% year over year, supporting the company’s growth outlook. Knowles quarterly earnings results
• Positive Sentiment: Management issued fourth-quarter guidance above analyst expectations, calling for EPS of $0.39-$0.43 versus the $0.36 consensus and revenue of $180 million-$190 million versus the $174.5 million consensus. The outlook suggests continued operating momentum and is the clearest potential catalyst for the stock. Knowles beats expectations and provides guidance
• Positive Sentiment: Profitability and cash generation improved in the quarter, with operating profit reported at $30.7 million, net income at $21.6 million and operating cash flow at $44.6 million. These results strengthen the fundamental case, although some reported financial figures differ across third-party summaries. Knowles third-quarter earnings performance
• Neutral Sentiment: Despite the earnings beat, Knowles trades below its 50-day and 200-day moving averages, indicating that technical momentum remains weak and investors may be waiting for further confirmation of the improved outlook.
• Negative Sentiment: Susquehanna lowered its price target for Knowles, potentially signaling that the broker sees limited near-term upside even after the company’s earnings beat. Susquehanna cuts Knowles price target
• Negative Sentiment: Recent insider activity has been exclusively selling, with executives reportedly making no open-market purchases during the past six months. While insider sales may reflect personal liquidity needs, the absence of buying can weigh on investor sentiment. Knowles insider trading activity

Wall Street Analyst Weigh In

KN has been the subject of a number of recent analyst reports. Wall Street Zen cut Knowles from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 1st. Weiss Ratings raised shares of Knowles from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, October 8th. Zacks Research lowered shares of Knowles from a “strong-buy” rating to a “hold” rating in a report on Tuesday, September 22nd. Susquehanna decreased their price objective on shares of Knowles from $40.00 to $35.00 and set a “neutral” rating for the company in a report on Wednesday. Finally, Robert W. Baird set a $50.00 target price on shares of Knowles in a research note on Friday. Three research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Knowles presently has an average rating of “Moderate Buy” and a consensus price target of $41.00.

Insider Buying and Selling at Knowles

In other Knowles news, Director Cheryl Shavers sold 6,618 shares of the company’s stock in a transaction on Monday, August 17th. The stock was sold at an average price of $39.27, for a total value of $259,888.86. Following the completion of the sale, the director directly owned 35,723 shares in the company, valued at approximately $1,402,842.21. This represents a 15.63% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Raymond Cabrera sold 6,178 shares of the firm’s stock in a transaction dated Monday, July 27th. The shares were sold at an average price of $36.28, for a total transaction of $224,137.84. Following the transaction, the senior vice president directly owned 127,945 shares in the company, valued at $4,641,844.60. This trade represents a 4.61% decrease in their position. The SEC filing for this sale provides additional information. 2.24% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Millstone Evans Group LLC boosted its position in Knowles by 212.9% during the first quarter. Millstone Evans Group LLC now owns 973 shares of the communications equipment provider’s stock valued at $25,000 after purchasing an additional 662 shares in the last quarter. MassMutual Private Wealth & Trust FSB grew its stake in Knowles by 35.9% in the second quarter. MassMutual Private Wealth & Trust FSB now owns 1,151 shares of the communications equipment provider’s stock valued at $48,000 after purchasing an additional 304 shares during the last quarter. Integrated Wealth Concepts LLC bought a new position in Knowles in the second quarter worth about $55,000. Public Employees Retirement System of Ohio bought a new position in Knowles in the second quarter worth about $58,000. Finally, Global Retirement Partners LLC purchased a new stake in shares of Knowles during the second quarter valued at about $60,000. 96.35% of the stock is owned by institutional investors.

Knowles Stock Performance

The business’s 50-day moving average price is $35.85 and its 200-day moving average price is $35.90. The company has a current ratio of 3.20, a quick ratio of 1.75 and a debt-to-equity ratio of 0.16. The stock has a market cap of $2.86 billion, a PE ratio of 43.45 and a beta of 1.59.

About Knowles

Knowles Corporation (NYSE: KN) is a global manufacturer of advanced electronic components and solutions for audio, communications, medical, industrial and other specialized applications. The company develops products that support sound capture, audio processing, signal management and high-performance connectivity in a range of electronic devices and systems.

Its portfolio includes microelectromechanical systems (MEMS) microphones, audio processors, speakers, receivers, balanced armature drivers and other acoustic components.