Here’s Why Knowles Corporation (KN) Stock is Trading at a Discount

Ariel Investments, an investment management company, released its “Ariel Appreciation Fund” third-quarter investor letter. A copy of the same can be downloaded here. In the third quarter, the fund declined -5.66% compared to the -4.93% decline for the Russell Midcap Value Index and -3.44% decline for the Russell Midcap Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Ariel Investment highlighted stocks like Knowles Corporation (NYSE:KN) in the Q3 2022 investor letter. Headquartered in Itasca, Illinois, Knowles Corporation (NYSE:KN) is a micro-acoustic, audio processing, and precision device solutions provider. On December 1, 2022, Knowles Corporation (NYSE:KN) stock closed at $16.05 per share. One-month return of Knowles Corporation (NYSE:KN) was 13.27%, and its shares lost 25.73% of their value over the last 52 weeks. Knowles Corporation (NYSE:KN) has a market capitalization of $1.46 billion.

Ariel Investment made the following comment about Knowles Corporation (NYSE:KN) in its Q3 2022 investor letter:

“Home devices and hearing aid manufacturer Knowles Corporation (NYSE:KN) also traded lower in the period as softening demand for consumer electronics, China lockdowns and excess inventory resulted in a top-line miss. Notably, continued strength across precision devices and hearing health products drove the bottom-line and free cash flow to come in ahead of consensus. KN also reaffirmed its 3-year financial guidance and announced a restructuring program within the audio segment to right size manufacturing capacity and operating expenses. Longer-term, we believe KN will benefit from the FDA’s proposal to allow over-the-counter hearing aids. We also think the move to hybrid work models will continue to drive solid demand for this market leading mic supplier. At current levels, KN is trading at a -44% discount to our estimate of private market value.”

Knowles Corporation (NYSE:KN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held Knowles Corporation (NYSE:KN) at the end of the third quarter, which was 11 in the previous quarter.

We discussed Knowles Corporation (NYSE:KN) in another article and shared Bernzott Capital Advisors’ views on the company. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.