Sensata Technologies (NYSE:ST) Stock Gets Price Target Boost from Barclays

Key Points

• Barclays raised Sensata Technologies’ price target to $56 from $55 while maintaining an “overweight” rating, implying 34.52% upside from the prior close.
• Sensata reported a strong quarter, with EPS of $1.13 beating the $0.96 consensus and revenue rising 7.7% year over year to about $1.0 billion.
• Despite the earnings beat and predominantly favorable analyst ratings, the stock carries a consensus “Hold” rating, and weaker-than-expected fourth-quarter guidance and elevated valuation remain concerns.

Sensata Technologies (NYSE:ST - Get Free Report) had its target price increased by research analysts at Barclays from $55.00 to $56.00 in a report released on Thursday, Benzinga reports. The brokerage presently has an "overweight" rating on the scientific and technical instruments company's stock. Barclays's price objective would indicate a potential upside of 34.52% from the company's previous close.

Several other equities research analysts also recently issued reports on the company. Oppenheimer upped their price target on Sensata Technologies from $55.00 to $58.00 and gave the stock an "outperform" rating in a report on Friday, July 31st. Truist Financial dropped their price objective on Sensata Technologies from $58.00 to $57.00 and set a "buy" rating on the stock in a research note on Wednesday. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Sensata Technologies in a report on Wednesday. Wall Street Zen lowered shares of Sensata Technologies from a "strong-buy" rating to a "buy" rating in a research note on Sunday, September 20th. Finally, UBS Group lowered their target price on shares of Sensata Technologies from $54.00 to $51.00 and set a "buy" rating for the company in a report on Wednesday. Five equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, Sensata Technologies has a consensus rating of "Hold" and a consensus price target of $50.33.

Sensata Technologies Stock Up 1.8%

ST traded up $0.75 during trading on Thursday, hitting $41.63. 320,388 shares of the company's stock were exchanged, compared to its average volume of 1,819,772. The company has a quick ratio of 1.58, a current ratio of 2.29 and a debt-to-equity ratio of 0.83. The business's 50 day moving average is $41.95 and its two-hundred day moving average is $41.79. Sensata Technologies has a fifty-two week low of $28.16 and a fifty-two week high of $53.89. The stock has a market cap of $6.06 billion, a P/E ratio of 69.56, a PEG ratio of 1.22 and a beta of 1.25.

Sensata Technologies (NYSE:ST - Get Free Report) last issued its quarterly earnings data on Tuesday, October 27th. The scientific and technical instruments company reported $1.13 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.96 by $0.17. Sensata Technologies had a net margin of 2.37% and a return on equity of 18.68%. The firm had revenue of $1 billion during the quarter, compared to analysts' expectations of $972.97 million. During the same period last year, the company earned $0.89 earnings per share. The business's revenue was up 7.7% on a year-over-year basis. As a group, equities analysts expect that Sensata Technologies will post 3.77 earnings per share for the current fiscal year.

Institutional Trading of Sensata Technologies

A number of institutional investors and hedge funds have recently modified their holdings of ST. Vise Technologies Inc. lifted its holdings in Sensata Technologies by 40.0% during the third quarter. Vise Technologies Inc. now owns 11,738 shares of the scientific and technical instruments company's stock valued at $488,000 after purchasing an additional 3,351 shares during the last quarter. State of Wyoming boosted its position in Sensata Technologies by 52.6% during the third quarter. State of Wyoming now owns 17,334 shares of the scientific and technical instruments company's stock worth $720,000 after purchasing an additional 5,974 shares during the period. VIRGINIA RETIREMENT SYSTEMS ET Al boosted its position in Sensata Technologies by 2.9% during the third quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 103,950 shares of the scientific and technical instruments company's stock worth $4,320,000 after purchasing an additional 2,900 shares during the period. Signaturefd LLC boosted its position in Sensata Technologies by 124.1% during the third quarter. Signaturefd LLC now owns 2,302 shares of the scientific and technical instruments company's stock worth $96,000 after purchasing an additional 1,275 shares during the period. Finally, Simplicity Wealth LLC purchased a new position in shares of Sensata Technologies in the third quarter worth about $208,000. 99.42% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Sensata Technologies

Here are the key news stories impacting Sensata Technologies this week:

• Positive Sentiment: Strong third-quarter results: Sensata earned $1.13 per share, beating the $0.96 analyst consensus, while revenue rose 7.7% year over year to approximately $1.0 billion, ahead of estimates of $972.97 million. EPS also increased from $0.89 in the year-ago quarter. Sensata Beats Q3 Earnings and Revenue Estimates
• Positive Sentiment: Analysts remain constructive: UBS and Truist maintained “buy” ratings, with price targets of $51 and $57, respectively. Those targets imply substantial potential upside from recent trading levels, although both firms reduced their targets modestly. UBS Sensata Price Target Truist Sensata Price Target
• Neutral Sentiment: Technical and valuation context: ST recently crossed above its 200-day moving average, a potentially supportive technical signal. However, its elevated valuation, including a reported P/E ratio above 67, leaves the stock sensitive to any slowdown in growth.
• Negative Sentiment: Soft fourth-quarter outlook: Sensata’s guidance for the quarter ending December 31 called for weaker revenue than investors expected. The disappointing outlook overshadowed the third-quarter earnings and revenue beats, pressuring the shares. Sensata Falls on Weak Fourth-Quarter Revenue Guidance
• Negative Sentiment: Target-price reductions: UBS lowered its target from $54 to $51, while Truist cut its target from $58 to $57. Although both firms retained buy ratings, the reductions signal more restrained near-term expectations.

About Sensata Technologies

Sensata Technologies Holding plc NYSE: ST is a global developer and manufacturer of sensing, control and protection solutions. The company supplies components that help monitor conditions, improve safety and efficiency, and support automated decision-making in vehicles, industrial equipment and other systems.

Its products include pressure, temperature, position, speed, force, current and fluid-level sensors, along with circuit breakers, controls and other protection devices. Sensata's technologies are used in applications such as automotive systems, heavy-duty vehicles, industrial machinery, heating and air-conditioning equipment, aerospace and defense, energy infrastructure, and data centers.

Sensata serves original equipment manufacturers and other industrial customers across North America, Europe, Asia and additional international markets.

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