Kimball Electronics (NASDAQ:KE) Shares Down 13.5% – Time to Sell?

Shares of Kimball Electronics, Inc. (NASDAQ:KE) dropped 13.5% on Thursday . The stock traded as low as $26.06 and last traded at $26.5750. Approximately 65,535 shares traded hands during trading, a decline of 55% from the average daily volume of 145,273 shares. The stock had previously closed at $30.72.

Key Headlines Impacting Kimball Electronics

Here are the key news stories impacting Kimball Electronics this week:

• Positive Sentiment: Sidoti raised several near‑term and full‑year earnings estimates (Q3 FY26 to $0.31 from $0.28; Q4 FY26 to $0.30 from $0.29; FY2026 to $1.38 from $1.32; also nudged Q4 2027). The firm’s upward revisions signal improving margin or demand expectations and support a higher earnings outlook for FY26. Sidoti Estimate Revisions
• Positive Sentiment: Market coverage notes Kimball among stocks trading up today, indicating positive intraday momentum and buyer interest that can amplify the impact of analyst upgrades. Stocks Trade Up: Yahoo UK
• Neutral Sentiment: Q2 FY26 results largely matched expectations: EPS in line with estimates, revenues declined year‑over‑year but margins expanded and management raised full‑year sales guidance — a mixed print that reduces downside risk but leaves growth questions. This explains why sentiment is constructive but cautious. Q2 Highlights: Zacks
• Neutral Sentiment: Full earnings materials and call transcript are available (presentation and transcript). Useful for investors wanting color on medical end‑market strength and margin drivers cited on the call; not new catalysts by themselves. Earnings Presentation Earnings Transcript
• Neutral Sentiment: An external notch: AmericanBankingNews reports a rating move by WallStreetZen described as a “downgrade to ‘Buy’,” a mixed signal (rating lowered but still a Buy). Impact is limited unless followed by other firms cutting conviction. WallStreetZen Note
• Negative Sentiment: Within Sidoti’s updates there was a small cut to Q1 FY27 EPS (to $0.33 from $0.34). It’s a modest downward tweak that tempers some of the optimism and could modestly pressure short‑term expectations if confirmed by company guidance. Sidoti Q1 FY27 Cut

Analyst Ratings Changes

Several research analysts have recently commented on the stock. Lake Street Capital reaffirmed a “buy” rating and issued a $32.00 price target on shares of Kimball Electronics in a report on Friday, November 7th. Zacks Research downgraded Kimball Electronics from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, January 6th. Wall Street Zen cut Kimball Electronics from a “strong-buy” rating to a “buy” rating in a research report on Saturday. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Kimball Electronics in a research report on Friday, January 9th. Two investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $32.00.

Kimball Electronics Stock Up 11.6%

The stock has a market capitalization of $639.90 million, a price-to-earnings ratio of 27.39, a P/E/G ratio of 0.87 and a beta of 1.20. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.34 and a current ratio of 2.21. The firm’s fifty day simple moving average is $29.39 and its 200 day simple moving average is $28.00.

Kimball Electronics (NASDAQ:KE) last issued its quarterly earnings results on Wednesday, February 4th. The electronics maker reported $0.28 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.28. The firm had revenue of $341.28 million for the quarter, compared to analyst estimates of $339.34 million. Kimball Electronics had a net margin of 1.65% and a return on equity of 6.13%. On average, sell-side analysts forecast that Kimball Electronics, Inc. will post 0.89 earnings per share for the current year.

Institutional Investors Weigh In On Kimball Electronics

Several institutional investors have recently made changes to their positions in KE. Legato Capital Management LLC bought a new position in Kimball Electronics during the 4th quarter worth $458,000. LSV Asset Management raised its stake in Kimball Electronics by 20.7% in the fourth quarter. LSV Asset Management now owns 20,400 shares of the electronics maker’s stock valued at $568,000 after purchasing an additional 3,500 shares in the last quarter. Sierra Summit Advisors LLC bought a new stake in Kimball Electronics during the fourth quarter worth about $840,000. IFP Advisors Inc grew its stake in Kimball Electronics by 167.7% during the fourth quarter. IFP Advisors Inc now owns 4,845 shares of the electronics maker’s stock worth $135,000 after buying an additional 3,035 shares in the last quarter. Finally, Abacus Wealth Partners LLC bought a new position in Kimball Electronics in the 4th quarter valued at about $384,000. 75.99% of the stock is currently owned by institutional investors.

Kimball Electronics Company Profile

Kimball Electronics, Inc is a global electronic manufacturing services (EMS) provider headquartered in Jasper, Tennessee. The company offers end-to-end product design and manufacturing solutions, serving original equipment manufacturers (OEMs) across a range of industries. With a focus on precision electronics and complex assemblies, Kimball Electronics leverages advanced engineering capabilities, quality systems and lean production methods to support customers from product concept through full-scale production.

The company’s core offerings include printed circuit board assembly (PCBA), system integration, tooling and test fixture development, and aftermarket services.