Bulls Up 26% in 3 Days, Outperforming the Market

Based in Illinois, Knowles Corp. (NYSE: KN) supplies advanced micro-acoustic, audio processing, and precision device solutions. The company functions via two main divisions, namely audio and precision devices.

Earnings Update of the Quarter 3, 2023

The Quarter 3 financial results are here and the investors have shown a massive bullish trend followed by the publishing. The KN stock price gained more than 26% in the last three trading sessions. The company has shown a decreased revenue of $175 Million year-on-year.

However, in the report, management has given a reason for the negative growth, which was the reduction in revenue from precision devices. This was caused by an excess of customer and channel inventory and a delay in defense shipments.

In addition, the non-GAAP gross income expanded by 6.1% when contrasted with the same quarter last year. This increment occurred basically because of the gain on the sale of fully depreciated assets, efficiency upgrades, and lower manufacturing plant costs.

Adjusted Earnings Before Interest and Taxes are up

In addition, the adjusted EBIT margin went up by 5.25% as compared to the last quarter due to favorable gross profit margins, reduced spending in the Capability Maturity Model (CMM), and lower incentive compensation costs. However, this increase was partially offset by higher professional and legal fees associated with the exploration of new mergers and acquisitions opportunities.

Technical Analysis and Prediction of the KN Stock Price

As per the current trend shows, the KN stock price has gone up significantly in the past few trading sessions. The bulls made a gap-up opening on Friday, and the bulls surpassed the immediate resistance levels, which were close to $15. In any case, this over-the-top bullish sentiment seems temporary. Therefore, before the price sustains above the current resistance level, nothing firm can be said about this trend sustainability.

Trend is Raising Questions For KN Stock in Daily Chart

The immediate support level of KN stock price is at $14, while the immediate resistance level is the same at $15.48. In addition to this, the 50-day EMA is at $14.52 level, while the 150-day EMA is above $15.7. The current price is above both the EMAs, while both of them are still in the bearish crossover phase from the previous downtrend.

This suggests that this uptrend is weak now, and some consolidation can be seen shortly. Moreover, the RSI has already reached its oversold zone of $73. All these factors combined predict that on Monday’s opening, KN stock price is likely to give some corrections.

Conclusion

Knowles Corp. (NYSE: KN) delivered the results for Q3 of this fiscal year. The revenues are down and the company has given some justifications around it. The current uptrend is weak and some corrections might be seen on Monday’s opening.

Technical Levels

Support Levels: $14 and $12
Resistance Levels: $15 and $17

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks or related indexes comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing