Knowles Anticipates 4%–6% Organic Growth in 2026 as Specialty Film Capacity Increases
Financial Performance: Knowles Corporation reported Q3 2025 revenue of $153 million, a 7% increase year-over-year, with EPS of $0.33, up 22%. The Precision Devices segment showed strong growth, contributing $88 million in revenue, while Medtech & Specialty Audio reached $65 million.
Growth Outlook: Management anticipates continued growth, projecting organic growth rates at the high end of 4% to 6% for 2026, with Q4 2025 revenue guidance between $151 million and $161 million. The Precision Devices segment is expected to grow at 6% to 8% in 2025.
Operational Highlights: Gross margins improved, with Medtech & Specialty Audio at 53% and Precision Devices at 41.5%. The company is focused on expanding specialty film capacity and has a strong balance sheet to support growth investments and share buybacks.
Analyst Sentiment: Analysts expressed optimism regarding specialty film growth, backlog strength, and margin improvements, with management maintaining a confident tone about operational execution and strategic acquisitions, positioning the company well for future growth.
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Knowles CEO Sells 5.62% of Shares Amid Positive Momentum
- Insider Sale: On January 15, 2026, Knowles CEO Jeffrey Niew executed a direct sale of 50,000 shares through multiple open-market transactions, totaling approximately $1.2375 million, indicating his ongoing confidence in the company's stock despite the sale.
- Change in Holdings: This sale represented 5.62% of Niew's direct holdings, marking the largest single open-market sale in recent history and more than double his recent median sell size of 2.73%, reflecting a trend of reduced holdings over the past year.
- Market Performance Analysis: The shares were sold at a weighted average price of $24.75, while the stock closed at $24.93 on the same day, suggesting that the sale occurred amid positive price momentum, with a total return of 24.5% over the past year.
- Investor Considerations: The transaction was executed as part of a Rule 10b5-1 trading plan, which allows insiders to trade shares on a predetermined basis, highlighting the need for investors to interpret insider activity cautiously without assuming strong conviction in the stock.
Knowles Stock is Currently Oversold (KN)
Current Trading Status: Knowles Corp (KN) shares have entered oversold territory with an RSI of 28.8, indicating potential exhaustion of recent selling pressure.
Price Performance: The stock's current price is $21.26, within a 52-week range of $12.19 (low) to $24.535 (high).
Investor Outlook: Bullish investors may view the low RSI as an opportunity to consider buying shares as selling may be slowing down.
Disclaimer: The opinions expressed in the article are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
