Strattec Security (NASDAQ:STRT) Stock Bumped Down to Strong Sell by Zacks Research

Key Points

• Zacks Research downgraded Strattec Security to “strong sell” from “hold,” while the broader analyst consensus remains “Moderate Buy” with an $83 price target.
• Strattec shares opened at $64.91, down 1.5%, and remained below their 50-day and 200-day moving averages of $74.78 and $76.67, respectively.
• The company beat quarterly expectations, reporting $2.06 EPS versus the $1.36 consensus and revenue of $151.83 million versus $146.77 million expected; institutional investors own 68.91% of the stock.

Strattec Security (NASDAQ:STRT - Get Free Report) was downgraded by Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued on Tuesday, Zacks reports.

Other analysts have also issued research reports about the stock. Freedom Broker restated a "hold" rating and set a $83.00 target price (down from $89.00) on shares of Strattec Security in a research report on Monday, August 31st. Weiss Ratings reissued a "buy (b)" rating on shares of Strattec Security in a research note on Monday, September 21st. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $83.00.

Strattec Security Trading Down 1.5%

Shares of STRT stock opened at $64.91 on Tuesday. The company has a market capitalization of $258.34 million, a price-to-earnings ratio of 12.98, a PEG ratio of 1.54 and a beta of 1.23. The firm has a 50-day moving average price of $74.78 and a 200 day moving average price of $76.67. Strattec Security has a twelve month low of $57.01 and a twelve month high of $93.00.

Strattec Security (NASDAQ:STRT - Get Free Report) last released its quarterly earnings results on Tuesday, August 25th. The auto parts company reported $2.06 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.36 by $0.70. The company had revenue of $151.83 million for the quarter, compared to analysts' expectations of $146.77 million. Strattec Security had a net margin of 3.56% and a return on equity of 10.79%. As a group, research analysts predict that Strattec Security will post 4.27 earnings per share for the current year.

Institutional Trading of Strattec Security

Several institutional investors have recently made changes to their positions in the stock. Legal & General Group Plc acquired a new position in Strattec Security in the second quarter valued at $34,000. Bank of America Corp DE acquired a new stake in Strattec Security during the second quarter worth about $234,000. Canada Pension Plan Investment Board acquired a new stake in Strattec Security during the second quarter worth about $285,000. Meeder Asset Management Inc. purchased a new position in shares of Strattec Security in the 2nd quarter worth about $296,000. Finally, Deutsche Bank AG purchased a new position in shares of Strattec Security in the 2nd quarter worth about $338,000. 68.91% of the stock is owned by hedge funds and other institutional investors.

Strattec Security Company Profile

Strattec Security Corporation designs and manufactures automotive access, security and related vehicle-control products. Its product portfolio includes mechanical and electronic locks, latches, keys, key fobs, ignition systems, actuators and other components used to control access to and operation of vehicles.

The company supplies original equipment manufacturers and other automotive customers, with products used in passenger vehicles, light trucks and other applications. Its operations primarily serve the North American automotive market, while its products and customer relationships support vehicle production in other international markets.

Strattec traces its roots to the automotive security operations associated with Briggs & Stratton and became an independent publicly traded company in 1995.

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