Exploring Kimball Electronics, Inc. (KE) Investor Profile: Who’s Buying and Why?

You're looking at Kimball Electronics, Inc. (KE) and trying to figure out if the smart money is sticking around, right? The short answer is: institutional investors are defintely in, but they're re-shuffling their chips. We see that a massive 75.99% of the stock is locked up by institutions, with giants like BlackRock, Inc. and The Vanguard Group, Inc. holding significant stakes, while the company's full-year fiscal 2025 revenue hit approximately $1.49 billion with an EPS of $0.68. But why the mixed signals, especially after the recent Q1 fiscal 2026 earnings beat of $0.49 EPS against a $0.24 consensus? The real story is the pivot: Kimball Electronics is aggressively shifting capital from traditional Electronics Manufacturing Services (EMS) to the higher-margin Medical Contract Manufacturing Organization (CMO) segment, including a new 300,000 sq. ft. Indianapolis facility. So, while funds like Nuveen LLC are initiating new positions, you also see value investors like LSV Asset Management cutting their stake by 60.0% in Q2 2025. Is this a long-term strategic bet on medical devices, or a near-term risk trade-off given the softness in the Automotive vertical? That's the question we need to unpack.

Who Invests in Kimball Electronics, Inc. (KE) and Why?

If you're looking at Kimball Electronics, Inc. (KE), you're looking at a stock dominated by institutional money, a classic pattern for a mid-cap company navigating a challenging but high-potential sector. The quick takeaway is that the big players-the funds and institutions-own the majority, betting on the long-term shift in the automotive and medical markets, even while near-term sales are a bit soft.

As of late 2025, institutional investors hold a commanding position, accounting for around 75.60% of the total shares outstanding. This isn't a stock driven by individual retail traders; it's a portfolio staple for major asset managers. Retail investors, the 'you' and 'me' of the market, hold an estimated 17.07%, with the remaining 7.33% held by company insiders, which is a healthy alignment of management and shareholder interests. You can learn more about the company's foundation and business model here: Kimball Electronics, Inc. (KE): History, Ownership, Mission, How It Works & Makes Money.

Here's the quick breakdown of who's holding the line:

• Institutional Investors: The heavy hitters, including BlackRock, Inc., The Vanguard Group, Inc., and Dimensional Fund Advisors LP, are the largest shareholders.
• Insider Ownership: Management and directors own a significant slice, which is a good sign for commitment.
• Retail Investors: The remaining float, often comprising smaller, long-term individual accounts.

The Institutional Bet: Growth and Market Position

The primary motivation for these large institutional holders isn't a massive dividend-KE doesn't pay one-it's a clear bet on future growth and the company's strategic market positioning. The consensus analyst rating is a 'Buy' or 'Strong Buy,' with a price target often cited at $32.00, reflecting this optimism.

The core of the investment thesis lies in the company's exposure to high-growth segments, especially the automotive and medical end markets. While sales in these segments saw declines of 11% and 12%, respectively, in Q1 Fiscal Year 2025 due to broader demand weakness, the long-term outlook is strong. Specifically, the push into electric vehicle (EV) technologies and new braking solutions is expected to contribute over $500 million to annual revenue over the next five to seven years. That's a huge tailwind. Analysts are projecting earnings growth of roughly 69% in the next year, which is why the stock trades at a high price-to-earnings (P/E) ratio of about 35.5x, anticipating that earnings recovery.

What attracts the big funds:

• Automotive & EV: Capturing new, high-value content in the electric and advanced safety systems space.
• Financial Resilience: The company generated positive cash flow from operating activities for the fourth consecutive quarter in Q2 FY2025, reducing borrowings on credit facilities by $41 million in that quarter alone.
• Efficiency Focus: Management is actively sharpening its focus, evidenced by the closure of its Tampa, FL manufacturing facility and the divestiture of its Automation, Test, and Measurement business.

Investment Strategies: Value, Momentum, and Capital Allocation

When you look at the investment strategies deployed, you see a mix, but the dominant theme is patient, value-oriented growth investing. Funds like BlackRock, Inc. and The Vanguard Group, Inc. are often passive index trackers, meaning they hold KE because it's a component of the Russell 2000 or other small-cap indexes. Their holding is structural and long-term.

However, the active managers are employing a classic 'turnaround/recovery' strategy. They are buying into the dip caused by the near-term cyclical downturn, believing the company can hit its Fiscal Year 2025 net sales guidance of $1.40 billion to $1.44 billion and an adjusted operating income of 3.4% to 3.6% of net sales. This strategy is reinforced by the company's own actions, like the buyback program, where KE repurchased 160,000 shares of common stock for $3.0 million in Q2 FY2025. That's a defintely a vote of confidence from management.

Here's a snapshot of the major institutional holdings, based on the latest filings:

The high institutional accumulation suggests that smart money is quietly building positions, viewing the current stock price (around $27.15 as of November 2025) as a discount on the future earnings potential. Your next step should be to model the impact of that $500 million in potential automotive revenue on the company's free cash flow to see if the analyst price target is justified.

Institutional Ownership and Major Shareholders of Kimball Electronics, Inc. (KE)

You're looking at Kimball Electronics, Inc. (KE) and wondering who the big money is betting on, and why. The direct takeaway is that institutional investors-the large funds and asset managers-control the vast majority of the company, holding approximately 75.99% to 78% of the stock as of late 2025. This high concentration means their investment decisions are the primary drivers of the stock's movement and strategic direction.

This level of institutional ownership signals a degree of confidence in the company's long-term strategy, particularly its pivot toward higher-margin areas like medical contract manufacturing, which you can read more about in the Mission Statement, Vision, & Core Values of Kimball Electronics, Inc. (KE).

The Top Institutional Players in KE

The institutional landscape for Kimball Electronics is dominated by the world's largest asset managers, which is typical for a mid-cap stock included in major indices. These are mostly passive index funds and large mutual funds, not activist hedge funds, so their influence is generally supportive and long-term focused. Here is a snapshot of the top holders based on their filings, primarily reflecting data reported around the end of the third quarter of fiscal year 2025 (September 29, 2025).

Here's the quick math on who holds the most sway:

BlackRock, Inc. and The Vanguard Group, Inc. alone account for over 17% of the shares outstanding. That's a defintely a significant chunk of ownership.

Recent Shifts: Who's Buying and Who's Selling?

The institutional ownership picture for Kimball Electronics, Inc. is one of accumulation with a few notable exits. In the first half of calendar year 2025, several funds significantly increased their exposure, showing confidence in the company's recent performance, which included an EPS beat of $0.49 versus a consensus estimate of $0.24 on $365.6 million in revenue.

The buying activity was aggressive in Q1 2025, with a number of institutions either initiating new positions or substantially growing existing ones. This suggests a positive reaction to the company's operational improvements and strategic focus on the medical segment, which saw sales increase 2% year-over-year to $115 million in Q3 Fiscal 2025.

• Avantax Advisory Services Inc. raised its holdings by a massive 81.8% in Q1.
• Envestnet Asset Management Inc. grew its position by 45.4% in Q1.
• Charles Schwab Investment Management Inc. increased its position by 34.6% in Q1.
• Nuveen LLC opened a new position valued at about $4.036 million in Q1.
• Inspire Advisors LLC also purchased a new stake in Q2, valued at approximately $313,000.

However, it wasn't all buying. LSV Asset Management, for example, lessened its stake by 60.0% in the second quarter of 2025, selling 268,009 shares. This is a crucial data point because it shows that not all large investors are aligned; some are taking profits or reallocating capital, which is a normal part of portfolio management.

Institutional Influence on Stock and Strategy

When institutions own nearly 78% of a company, they are, for all intents and purposes, the company's ultimate owners. This collective power has a direct impact on the stock price and strategy. When the company reported its strong Q3 2025 results, the stock price reacted positively, rising by 8.2% in a week, directly rewarding these large institutional holders.

The sheer volume of institutional money means the stock is highly liquid, but also sensitive to large block trades. If one of the top five holders decides to sell a significant portion, the stock price will likely drop fast. Conversely, their continued holding provides a strong floor. Their presence also validates the company's strategic moves, such as the focus on the medical segment and improved cash flow generation-Kimball Electronics generated $30.9 million in cash flow from operating activities in Q3 Fiscal 2025.

What this high institutional ownership means for you is that the stock's performance is heavily tied to the institutional consensus. The current analyst sentiment is largely positive, with an average 'Buy' rating and a consensus price target of $32, suggesting institutions are still seeing upside potential.

Key Investors and Their Impact on Kimball Electronics, Inc. (KE)

If you're looking at Kimball Electronics, Inc. (KE), the direct takeaway is this: the story is overwhelmingly driven by institutions, not retail investors or activist funds. They hold the majority of the power, and their recent moves show a nuanced, but generally positive, view on the company's strategic direction, especially after a strong earnings beat.

Institutional investors-think massive mutual funds, pension funds, and exchange-traded fund (ETF) providers-collectively own between 75.99% and 78.99% of Kimball Electronics, Inc.'s outstanding stock as of late 2025. That's a huge block of control. Honestly, when a company's ownership structure looks like this, the board and management are defintely listening to the big players.

The Big Three: Who Holds the Reins

The top shareholders are the usual suspects in the passive and quantitative investing world. These aren't typically activist funds looking to break up the company, but rather large asset managers whose primary goal is to track a benchmark index or manage broad portfolios. Their sheer size, however, gives them immense influence on corporate governance matters.

Here's a snapshot of the top institutional holders, based on the latest available filings from the third quarter of 2025:

Here's the quick math: with a market capitalization hovering around $660 million to $690 million in November 2025, these three alone control a stake worth over $165 million. BlackRock, Inc.'s position alone is nearly one-tenth of the entire company. This concentration means that their proxy votes on things like director elections and executive compensation are critical.

Recent Moves: The Tug-of-War on Shares

The recent trading activity shows a healthy churn of capital, which is normal for a mid-cap stock like Kimball Electronics, Inc. (KE) that has shown strong performance, like the 78% one-year return seen through September 2025.

• LSV Asset Management made a notable exit, lessening its stake by a substantial 60.0% in the second quarter, selling 268,009 shares. This kind of large-scale selling often signals a change in a fund's investment mandate, like shifting away from value stocks, but it was absorbed by the market.
• Nuveen LLC initiated a significant new position in the first quarter, valued at about $4.036 million. This shows fresh capital viewing the stock as an opportunity.
• Other firms like Envestnet Asset Management Inc. and Charles Schwab Investment Management Inc. grew their holdings by 45.4% and 34.6% respectively in the first quarter, signaling confidence in the company's trajectory.

It's a classic rotation: some value-oriented funds are taking profits, but growth-oriented and broad-market funds are stepping in. That's a good sign for stability.

Investor Influence: Governance, Not Activism

The influence of these major institutions on Kimball Electronics, Inc. is less about hostile takeovers and more about corporate governance (the system of rules, practices, and processes by which a company is directed and controlled). There is no evidence of a major activist investor filing a Schedule 13D (a filing indicating an intent to change or influence control) in 2025. The company's influence is exerted through the ballot box.

For example, at the annual meeting of share owners on November 14, 2025, the institutional block voted overwhelmingly to re-elect the Class II directors and ratify the independent auditors. One director, Tom G. Vadaketh, received support from 99% of the votes cast, demonstrating near-unanimous institutional approval of the current leadership and strategy. This collective support allows management to focus on its core business, which is critical given the company's Fiscal Year 2025 revenue was $1,487 million and their focus on higher-margin programs.

To understand how this focus translates to performance, you can check out the full breakdown of the company's business model and history here: Kimball Electronics, Inc. (KE): History, Ownership, Mission, How It Works & Makes Money. The institutional backing provides a stable foundation for their global manufacturing expansion plans.

Next Step: Monitor the next round of 13F filings in early 2026 to see if the recent Q1 FY2026 EPS beat of $0.49 (versus the $0.24 consensus) translated into even larger institutional stake increases.

Market Impact and Investor Sentiment

You're looking at Kimball Electronics, Inc. (KE) and wondering who's buying, who's selling, and what that tells you about the near-term future. The direct takeaway is this: institutional sentiment is broadly positive, focused on long-term diversification, even as the stock price shows volatility from mixed quarterly results. The big money-institutional investors-currently owns a significant chunk, about 75.99% of the company's stock.

Insider sentiment is defintely a bright spot, showing conviction from those who know the business best. Over the last year, insiders have collectively bought $28.2 million worth of shares, starkly outweighing the $5.78 million sold. This strong internal buying signal suggests confidence in the company's strategic direction, despite the broader market headwinds in the electronics manufacturing services (EMS) space.

Who's Buying and Who's Trimming Their Stake

The institutional investor landscape for Kimball Electronics, Inc. is a classic tug-of-war between growth-focused funds initiating new positions and value-oriented funds trimming their exposure. You see major players like BlackRock, Inc. and The Vanguard Group, Inc. consistently listed among the top institutional holders, a sign of its inclusion in broad index and mutual funds. But the real action is in the recent shifts.

In Q2, we saw several funds increase their exposure or take a fresh look. For example, Dynamic Technology Lab Private Ltd boosted its holding by a massive 112.0%, acquiring an additional 23,274 shares valued at roughly $847,000. Also in Q2, Integrated Quantitative Investments LLC established a new position valued at about $254,000. But you need to be a realist: LSV Asset Management, a major player, cut its stake by 60.0% in Q2, selling 268,009 shares valued at $3.443 million. That's a large reduction that can't be ignored.

Market Reaction to Mixed Signals

The stock market has been very reactive to Kimball Electronics, Inc.'s mixed financial performance. You saw this clearly on November 6, 2025, when the stock dropped 11.1% after the company reported its quarterly results. Here's the quick math: adjusted earnings per share (EPS) of $0.49 crushed the consensus estimate of $0.24 by $0.25, and revenue of $365.60 million beat expectations of $338.43 million. But the market focused on the revenue contraction-a 2.3% drop year-over-year-suggesting investors were more concerned about the overall sales decline than the better-than-expected profitability.

Still, the stock has shown resilience. Just a few months earlier, a strong earnings report led to an 8.7% stock gain. The price movement on November 21, 2025, when the stock gained 2.85% to close at $27.05, shows that even small positive technical signals can generate a quick bounce.

Analyst Perspectives on KE's Future

Wall Street analysts are leaning bullish, which is a good sign for you. The consensus rating on Kimball Electronics, Inc. is a clear 'Buy,' with an average 12-month price target set at $32.00. This target implies a forecasted upside of 18.30% from the recent price of $27.05. We've seen a few key upgrades recently, with Zacks Research and Wall Street Zen both moving the stock to a 'Strong Buy' rating in November 2025.

The core of this positive outlook isn't the near-term numbers, which are still navigating a challenging environment. Instead, analysts are focused on the company's strategic shift toward higher-margin, more stable segments. The expansion into medical contract manufacturing, including the new Indianapolis medical facility, is considered a key long-term growth catalyst. For the full Fiscal Year 2025, analysts forecast an EPS of $0.89, with net sales guidance in the range of $1.40 - $1.44 billion and adjusted operating income between 3.4% - 3.6% of net sales.

• Consensus Price Target: $32.00
• Projected Upside: 18.30%
• Key Catalyst: Diversification into Medical Manufacturing
• FY2025 Net Sales Guidance: $1.40 - $1.44 billion

The investment narrative requires you to believe in the long-term pivot over the short-term cyclical weakness, which is why you see the stock price trading near $27.05 despite the strong analyst support. To understand the foundation of this long-term belief, you should review the company's strategic goals: Mission Statement, Vision, & Core Values of Kimball Electronics, Inc. (KE).

Next Step: Check the trading volume on any days with significant price movement (up or down) to see if the institutional buying/selling aligns with the volatility.