Should I Buy KE? KE 2026 Analysis

Should You Buy Kimball Electronics Inc (KE) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

26.290

1 Day change

11.63%

52 Week Range

33.190

Analysis Updated At

2026/02/05

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Buy KE now (pre-market ~30.72): trend setup is bullish (stacked moving averages) and the latest earnings update was a mild positive surprise.
Near-term target zone: 31.58 (R1) then 32.31 (R2), which also aligns closely with the latest Street PT ($32).
Intellectia Proprietary Trading Signals
- AI Stock Picker: no signal on given stock today.
- SwingMax: No signal on given stock recently.
Why it still qualifies as a buy despite no proprietary signal: price is sitting just above the pivot (30.41) with supportive options positioning and a post-earnings sentiment tailwind; for an impatient buyer, this is a reasonable “buy-now” spot rather than waiting for a deeper pullback.

Technical Analysis

Trend: Bullish structure with SMA_5 > SMA_20 > SMA_200, indicating an established uptrend across short/medium/long timeframes.
Momentum: MACD histogram +0.057 (above 0) but contracting → upside momentum is positive but not accelerating; favors a grind higher rather than a sharp breakout.
RSI: RSI_6 = 55.3 (neutral) → not overbought; room for continuation without being extended.
Key levels:
- Pivot support: 30.41 (price is just above this level)
- Support: 29.24 (S1) then 28.51 (S2)
- Resistance: 31.58 (R1) then 32.31 (R2)
Pattern-based forward view (provided): similar-pattern model suggests ~80% chance of +4.8% next day, -2.94% next week, +6.4% next month → supports a buy-now attempt for an early push, with some chop risk over the following week.

Options Data

Bullish

Open Interest Put-Call Ratio

Neutral

Option Volume Put-Call Ratio

Positioning (Open Interest): Put/Call OI ratio 0.17 (calls dominate) → generally bullish sentiment/positioning.
Flow (Volume): Put/Call volume ratio 1.0, but absolute volume is extremely small (todays_volume=2) → today’s tape is not very informative.
Volatility: 30D IV 72.11% vs HV 39.16% and IV percentile ~69.7 → options are pricing elevated movement; this often happens around/just after earnings and can reflect heightened expectations.
Open interest/participation: today OI 223 and “today vs OI avg 30D” ~104.7 suggests OI is around normal-to-slightly elevated, but overall the chain activity looks light.

Technical Summary

Sell

Buy

Positive Catalysts

- Earnings beat (Q2 FY26): non-GAAP EPS $0.28 vs $0.26 expected; revenue $341.3M vs $341.1M expected (small beat).
- Street narrative improving: Lake Street said “worst is behind” and expects the company can work back to growth next year.
- Profitability trend improving (from provided financial snapshot): strong YoY improvement in net income, EPS, and gross margin, supporting a “quality of earnings” angle even with soft revenue.
- Options OI skew bullish (low put/call OI ratio), consistent with a constructive bias.

Neutral/Negative Catalysts

- Revenue still contracting YoY: Q2 revenue down ~4.5% YoY (from news) and Q1 revenue down ~2.31% YoY (from snapshot) → growth is not fully re-established.
- Momentum not accelerating: MACD is positive but contracting, which can precede consolidation near resistance (31.58 area).
- Limited confirmation from “smart money” flows: hedge funds and insiders are neutral, with no significant recent trend.
- No notable political/congress catalyst: no recent congress trading data available (and no politician activity indicated).

Financial Performance

Latest quarter season in provided financial snapshot: 2026/Q1
- Revenue: $365.6M, -2.31% YoY (top-line still under pressure)
- Net income: $10.07M, +219.71% YoY (major profitability improvement)
- EPS: $0.40, +233.33% YoY
- Gross margin: 7.89%, +25.04% YoY
Takeaway: the story is currently margin/profit recovery despite soft revenue—a setup that can support the stock if revenue stabilization follows.
Most recent headline quarter (Q2 FY26, from news): EPS and revenue both came in slightly above expectations, though revenue was down YoY.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Recent change (2025-11-07): Lake Street raised PT to $32 from $28 and reiterated Buy.
What that implies: analysts covering it (at least the cited firm) are leaning toward a recovery/back-to-growth thesis after a period of weakness.
Wall Street pros (from the cited note): “worst is behind,” expectation to return to growth next year, improved outlook.
Wall Street cons (inferred from the current fundamental backdrop): the company still needs to prove sustained revenue growth, since recent quarters show YoY sales declines.

1 Analyst Rating

Wall Street analysts forecast KE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KE is 32 USD with a low forecast of 32 USD and a high forecast of 32 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

1 Buy

0 Hold

0 Sell

Moderate Buy

Current: 23.550

Low

Averages

High

Current: 23.550

Low

Averages

High

Lake Street

Buy

maintain

$28 -> $32

AI Analysis

2025-11-07

Reason

Lake Street

Price Target

$28 -> $32

AI Analysis

2025-11-07

maintain

Buy

Reason

Lake Street raised the firm's price target on Kimball Electronics to $32 from $28 and keeps a Buy rating on the shares. After what the firm calls "a strong start in FY26," it views the worst as behind the company and thinks it can now work to get back to growth next year, the analyst tells investors.

Lake Street

Buy

maintain

$21 -> $28

2025-08-15

Reason

Lake Street

Price Target

$21 -> $28

2025-08-15

maintain

Buy

Reason

Lake Street raised the firm's price target on Kimball Electronics to $28 from $21 and keeps a Buy rating on the shares after the company reported revenue and EPS above estimates in what the firm calls a "strong finish to the year." While "disappointed" that FY26 will represent the third consecutive year of a declining top line, the firm believes revenue headwinds do not reflect "any meaningful share loss or changes in the long-term growth opportunities," the analyst tells investors.

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KE Should I Buy

KE Should I Buy

Should You Buy Kimball Electronics Inc (KE) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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