Hedge Fund Buys 622,500 Knowles Shares as Stock Outperforms S&P 500 — Should You?

13 hours ago 4

Jonathan Ponciano, The Motley Fool

Sun, December 7, 2025 astatine 12:50 PM CST 5 min read

New York-based Harvey Partners initiated a caller involvement successful Knowles Corporation, acquiring 622,500 shares for an estimated $14.5 cardinal successful the 3rd quarter.
The alteration represents 1.3% of Harvey Partners’ 13F reportable assets nether absorption arsenic of September 30.
The KN presumption is not among the fund’s apical 5 holdings.
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On November 14, New York-based Harvey Partners disclosed a caller presumption successful Knowles Corporation (NYSE:KN), adding 622,500 shares valued astatine astir $14.5 cardinal during the 3rd quarter.

According to a filing with the Securities and Exchange Commission dated November 14, Harvey Partners established a caller presumption successful Knowles Corporation (NYSE:KN). The steadfast reported a holding of 622,500 shares, amounting to a marketplace worth of astir $14.5 cardinal arsenic of September 30. The presumption accounts for 1.3% of the fund’s reportable U.S. equity assets.

Top holdings aft the filing:

NYSE: NPO: $56.3 cardinal (5.1% of AUM)
NYSE: BWXT: $53.4 cardinal (4.9% of AUM)
NYSE: AZZ: $53 cardinal (4.8% of AUM)
NASDAQ: GLDD: $44.4 cardinal (4% of AUM)
NASDAQ: ADEA: $43.9 cardinal (4% of AUM)

As of Friday, shares of Knowles Corporation were priced astatine $23.37, up 20% implicit the past twelvemonth and good outperforming the S&P 500, which is up 13% successful the aforesaid period.

Metric

Value

Price (as of marketplace adjacent Friday)	$23.37
Market Capitalization	$2 billion
Revenue (TTM)	$573.5 million
Net Income (TTM)	$35.8 million

Knowles Corporation offers micro-acoustic microphones, balanced armature speakers, audio processors, high-performance capacitors, and RF solutions crossed user electronics, medtech, defense, electrical vehicle, industrial, and communications sectors.
The institution generates gross by designing, manufacturing, and selling audio and precision instrumentality components to archetypal instrumentality manufacturers, declaration manufacturers, and distributors worldwide.
Primary customers see planetary OEMs successful mobile, proceeding health, IoT, computing, medical, outer communications, and concern markets.

Knowles Corporation is simply a starring supplier of precocious micro-acoustic, audio, and precision instrumentality solutions with a planetary footprint and a diversified lawsuit base. The institution leverages decades of expertise to service high-growth markets specified arsenic mobile communications, proceeding health, and concern electronics.

A caller presumption successful a volatile sanction similar Knowles matters due to the fact that it signals wherever managers spot durable demand. In different words, Harvey Partners’ determination mightiness suggest assurance that Knowles’ vulnerability to diversified end-markets—from proceeding wellness to defence and concern electronics—can enactment steadier net adjacent erstwhile user hardware cycles soften.

In the 3rd quarter, Harvey Partners initiated a $14.5 cardinal position, making Knowles a humble but intentional summation astatine 1.3% of reportable assets. And though shares person traded choppily successful caller years, Knowles has outperformed the broader marketplace implicit the past 12 months, rising 20% versus the S&P 500’s 13% gain.

Recent net assistance explicate the interest. Third-quarter gross grew 7% twelvemonth implicit twelvemonth to $152.9 million, portion gross borderline expanded to 45.7%, and non-GAAP EPS came successful astatine $0.33—above the midpoint of guidance. Management highlighted beardown plan activity, a steadfast backlog, and reiterated expectations for 6% integrated gross maturation this year, with fourth-quarter gross projected to emergence different 9% twelvemonth implicit year. The institution besides generated $29 cardinal successful operating currency and repurchased $20 cardinal of stock, underscoring improving fundamentals that semipermanent investors whitethorn presumption arsenic a stabilizing unit contempt ongoing stock volatility.