Strattec Security's (STRT) "Hold" Rating Reiterated at Freedom Broker

Key Points

• Freedom Broker reiterated a “Hold” rating on Strattec Security and cut its price target to $83 from $89, implying 17.7% upside from the prior close. The analyst consensus remains “Moderate Buy,” with an average target of $83.
• Strattec shares fell 6.0% to $70.52 in Monday trading. The company recently exceeded quarterly expectations, reporting $2.06 in earnings per share versus the $1.36 consensus and revenue of $151.83 million versus $146.77 million expected.
• The board authorized a $40 million share repurchase program, allowing buybacks of up to 12.8% of outstanding shares. Institutional investors own approximately 68.91% of the company.

Strattec Security (NASDAQ:STRT - Get Free Report)'s stock had its "hold" rating reiterated by stock analysts at Freedom Broker in a report released on Monday,Benzinga reports. They presently have a $83.00 price target on the auto parts company's stock, down from their previous price target of $89.00. Freedom Broker's price target points to a potential upside of 17.70% from the stock's previous close.

A number of other equities research analysts have also weighed in on the stock. Zacks Research upgraded shares of Strattec Security from a "strong sell" rating to a "hold" rating in a report on Friday, July 10th. Weiss Ratings reissued a "buy (b)" rating on shares of Strattec Security in a research note on Wednesday, June 24th. Wall Street Zen cut Strattec Security from a "buy" rating to a "hold" rating in a research note on Sunday, May 17th. Finally, Freedom Capital upgraded Strattec Security from a "hold" rating to a "strong-buy" rating in a report on Monday, May 11th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $83.00.

Strattec Security Trading Down 6.0%

Shares of STRT traded down $4.52 during midday trading on Monday, reaching $70.52. The stock had a trading volume of 51,621 shares, compared to its average volume of 82,462. The company's 50-day moving average is $81.93 and its 200 day moving average is $79.68. Strattec Security has a 12-month low of $57.01 and a 12-month high of $93.00. The company has a market capitalization of $294.77 million, a price-to-earnings ratio of 14.10, a price-to-earnings-growth ratio of 1.76 and a beta of 1.18.

Strattec Security (NASDAQ:STRT - Get Free Report) last announced its quarterly earnings data on Tuesday, August 25th. The auto parts company reported $2.06 earnings per share for the quarter, beating analysts' consensus estimates 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 return on equity of 10.82% and a net margin of 3.56%. Research analysts forecast that Strattec Security will post 4.27 EPS for the current fiscal year.

Strattec Security announced that its board has initiated a stock buyback program on Thursday, May 28th that allows the company to repurchase $40.00 million in outstanding shares. This repurchase authorization allows the auto parts company to purchase up to 12.8% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company's board of directors believes its shares are undervalued.

Institutional Investors Weigh In On Strattec Security

Several institutional investors and hedge funds have recently bought and sold shares of STRT. Gabelli Funds LLC boosted its position in Strattec Security by 41.7% during the 1st quarter. Gabelli Funds LLC now owns 247,800 shares of the auto parts company's stock valued at $19,413,000 after acquiring an additional 72,900 shares in the last quarter. De Lisle Partners LLP purchased a new stake in Strattec Security in the second quarter worth $3,494,000. Dimensional Fund Advisors LP grew its stake in Strattec Security by 3.6% in the first quarter. Dimensional Fund Advisors LP now owns 248,136 shares of the auto parts company's stock worth $19,438,000 after purchasing an additional 8,542 shares during the period. Sei Investments Co. raised its holdings in Strattec Security by 100.0% in the first quarter. Sei Investments Co. now owns 17,682 shares of the auto parts company's stock worth $1,385,000 after purchasing an additional 8,841 shares in the last quarter. Finally, Lazard Asset Management LLC raised its holdings in Strattec Security by 16.4% in the first quarter. Lazard Asset Management LLC now owns 40,995 shares of the auto parts company's stock worth $3,212,000 after purchasing an additional 5,769 shares in the last quarter. Hedge funds and other institutional investors own 68.91% of the company's stock.

About Strattec Security

Strattec Security Corporation is a Wisconsin‐based designer and manufacturer of mechanical and electronic locking systems for the global automotive market. Established more than five decades ago, the company supplies original equipment manufacturers (OEMs) and the aftermarket with a broad portfolio of lock and key solutions tailored to passenger cars, light trucks and commercial vehicles.

The company's product range includes mechanical locking systems such as door lock cylinders, ignition lock modules, key blanks and door handles, as well as electromechanical and keyless‐entry systems.

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