Strattec Security (NASDAQ:STRT) Issues Earnings Results

Key Points

• Strattec Security reported quarterly EPS of $2.06, beating analyst expectations of $1.36 by $0.70. The company posted an 11.00% return on equity and a 4.31% net margin.
• Shares rose to $79.21 in mid-day trading, while the stock remains below its 52-week high of $92.50. Strattec has a market capitalization of approximately $331.1 million and a price-to-earnings ratio of 13.07.
• The board approved a $40 million share-buyback program, allowing repurchases of up to 12.8% of outstanding shares; institutional investors own 68.91% of the company’s stock.

Strattec Security (NASDAQ:STRT - Get Free Report) announced its quarterly earnings data on Tuesday. The auto parts company reported $2.06 EPS for the quarter, beating the consensus estimate of $1.36 by $0.70, Zacks reports. Strattec Security had a return on equity of 11.00% and a net margin of 4.31%.

Strattec Security Stock Performance

Shares of STRT stock traded up $1.54 during mid-day trading on Tuesday, hitting $79.21. The company's stock had a trading volume of 71,784 shares, compared to its average volume of 81,220. Strattec Security has a 52-week low of $57.01 and a 52-week high of $92.50. The business has a 50-day moving average price of $82.30 and a 200 day moving average price of $80.08. The stock has a market cap of $331.10 million, a price-to-earnings ratio of 13.07, a PEG ratio of 1.69 and a beta of 1.18.

Institutional Trading of Strattec Security

A number of institutional investors have recently made changes to their positions in the stock. Bank of America Corp DE boosted its holdings in Strattec Security by 137.9% in the fourth quarter. Bank of America Corp DE now owns 2,208 shares of the auto parts company's stock worth $91,000 after purchasing an additional 1,280 shares during the last quarter. Goldman Sachs Group Inc. raised its stake in Strattec Security by 41.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 22,548 shares of the auto parts company's stock valued at $890,000 after buying an additional 6,624 shares during the last quarter. Empowered Funds LLC lifted its holdings in shares of Strattec Security by 3.3% during the 1st quarter. Empowered Funds LLC now owns 17,221 shares of the auto parts company's stock valued at $680,000 after buying an additional 555 shares during the period. Jane Street Group LLC lifted its holdings in shares of Strattec Security by 61.1% during the 1st quarter. Jane Street Group LLC now owns 15,869 shares of the auto parts company's stock valued at $626,000 after buying an additional 6,019 shares during the period. Finally, Geode Capital Management LLC boosted its stake in shares of Strattec Security by 110.2% in the 2nd quarter. Geode Capital Management LLC now owns 90,389 shares of the auto parts company's stock worth $5,624,000 after buying an additional 47,389 shares during the last quarter. Hedge funds and other institutional investors own 68.91% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on the stock. Wall Street Zen lowered shares of Strattec Security from a "buy" rating to a "hold" rating in a research note on Sunday, May 17th. Freedom Capital upgraded shares of Strattec Security from a "hold" rating to a "strong-buy" rating in a report on Monday, May 11th. Zacks Research raised shares of Strattec Security from a "strong sell" rating to a "hold" rating in a research note on Friday, July 10th. Finally, Weiss Ratings reiterated a "buy (b)" rating on shares of Strattec Security in a report on Wednesday, June 24th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of "Buy".

Strattec Security announced that its board has approved a share buyback program on Thursday, May 28th that allows the company to repurchase $40.00 million in shares. This repurchase authorization allows the auto parts company to buy up to 12.8% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company's management believes its shares are undervalued.

Strattec Security Company Profile

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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