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Why Are Knowles (KN) Shares Soaring Today

KN Cover Image

What Happened?

Shares of electronic components manufacturer Knowles (NYSE: KN) jumped 10% in the afternoon session after the company reported strong second-quarter financial results that surpassed analyst expectations, driven by a cyclical recovery and robust order growth. 

The company posted revenue of $146 million, an 8% increase year-over-year, and earnings per share of $0.24, a 20% rise from the prior year's quarter. This performance was driven by a cyclical recovery and robust order growth, particularly in its Precision Devices segment. Management highlighted a strong book-to-bill ratio of 1.15 for the segment, signaling healthy demand. In response to the strong results and positive outlook, analysts at both Baird and Craig-Hallum raised their price targets on the stock to $25 and $22, respectively. Knowles also repurchased $30 million of its shares during the quarter, further bolstering investor sentiment.

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What Is The Market Telling Us

Knowles’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. Moves this big are rare for Knowles and indicate this news significantly impacted the market’s perception of the business.

Knowles is up 1.6% since the beginning of the year, and at $20.33 per share, it is trading close to its 52-week high of $20.58 from January 2025. Investors who bought $1,000 worth of Knowles’s shares 5 years ago would now be looking at an investment worth $1,383.

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