FBR Capital Reiterates an Underperform Rating on Knowles Corp (NYSE:KN)

In a report released today, Christopher Rolland from FBR Capital reiterated anUnderperform rating on Knowles Corp (NYSE: KN), with a price target of $17. The company’s shares closed yesterday at $17.23, close to its 52-week low of $16.01.

Rolland observed, “On Monday evening, July 27, Knowles Corporation (KN) reported slightly weaker- than-expected 2Q15 results and 3Q15 top-line guidance. However, given the high short interest (>35%) and a sell-off earlier in the day causing the stock to hit an all- time low, we believe the guidance will likely be viewed as better than feared and should spark a relief rally. Indeed, the strong 3Q15 sequential ramp in MCE revenue was admittedly impressive, which, we believe, may indicate either increased share or the addition of a fourth microphone at Apple (or both). The company also provided better-than-expected gross margin results and guidance—particularly impressive, as 3Q15 appears immune to the adverse GM effects of a higher MCE revenue mix.”

Knowles Corp has an analyst consensus of Hold, with a price target consensus of $19.50.

The company has a one year high of $33.82 and a one year low of $16.01. Currently, Knowles Corp has an average volume of 1.47M.

Financial bloggers on sites such as wsobserver.com, SeekingAlpha and others, seem to have a Positive view on KN. When evaluating the opinions of financial bloggers over the last 3 months, 88% of bloggers have indicated a Bullish sentiment, while 12% have indicated a Bearish sentiment. The average blogger Bullish sentiment in the sector is 67% which is less positive than the blogger sentiment of KN.

Unlike FBR Capital`s latest rating, based on the recent corporate insider activity of 47 insiders, corporate insider sentiment is neutral on the stock. Last month, James Wynn, a the SVP, Global Supply Chain of KN bought 1,275 shares for a total of $24,633.

According to TipRanks.com, Rolland is a 4-star analyst with an average return of6.3% and a 56.2% success rate. Rolland covers the Technology sector, focusing on stocks such as Advanced Micro Devices, Applied Micro Circ., and Lattice Semicon.

Knowles Corporation manufactures and sells micro-acoustic, specialty components, and human interface solutions and offers products such as hearing aid components, micro-electro-mechanical systems, microphones and transducers, among others.