FY2027 EPS Estimates for Strattec Security Reduced by Sidoti

Key Points

• Sidoti cut Strattec Security’s FY2027 EPS forecast to $4.27 from $4.85, matching the current consensus estimate. The firm also projected $1.08 EPS for Q4 2027 and $1.44 for Q4 2028.
• Strattec Security’s latest quarterly results exceeded expectations, with EPS of $2.06 versus the $1.36 consensus and revenue of $151.83 million compared with estimates of $146.77 million.
• The company authorized a $40 million share-repurchase plan, covering up to 12.8% of outstanding shares, while institutional investors own 68.91% of the stock. MarketBeat data shows a consensus “Buy” rating despite mixed recent analyst actions.

Strattec Security Corporation (NASDAQ:STRT - Free Report) - Stock analysts at Sidoti lowered their FY2027 earnings estimates for Strattec Security in a research report issued on Thursday, August 27th. Sidoti analyst J. Franzreb now forecasts that the auto parts company will post earnings per share of $4.27 for the year, down from their previous forecast of $4.85. The consensus estimate for Strattec Security's current full-year earnings is $4.27 per share. Sidoti also issued estimates for Strattec Security's Q4 2027 earnings at $1.08 EPS and Q4 2028 earnings at $1.44 EPS.

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, beating analysts' consensus estimates of $1.36 by $0.70. The business had revenue of $151.83 million for the quarter, compared to the consensus estimate of $146.77 million. Strattec Security had a net margin of 3.56% and a return on equity of 10.82%.

Other analysts have also issued research reports about the company. Wall Street Zen lowered Strattec Security from a "buy" rating to a "hold" rating in a research report on Sunday, May 17th. Freedom Capital upgraded Strattec Security from a "hold" rating to a "strong-buy" rating in a research report on Monday, May 11th. Zacks Research raised 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 given a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Buy".

Strattec Security Stock Performance

Shares of STRT stock opened at $75.04 on Monday. The firm has a market cap of $313.67 million, a P/E ratio of 15.01, a P/E/G ratio of 1.76 and a beta of 1.18. The firm's 50 day moving average price is $81.93 and its 200-day moving average price is $79.68. Strattec Security has a one year low of $57.01 and a one year high of $93.00.

Institutional Investors Weigh In On Strattec Security

Several large investors have recently added to or reduced their stakes in STRT. Bank of America Corp DE lifted its holdings in Strattec Security by 137.9% during the 4th quarter. Bank of America Corp DE now owns 2,208 shares of the auto parts company's stock worth $91,000 after buying an additional 1,280 shares in the last quarter. Goldman Sachs Group Inc. grew its stake in shares of Strattec Security by 41.6% in the first quarter. Goldman Sachs Group Inc. now owns 22,548 shares of the auto parts company's stock worth $890,000 after acquiring an additional 6,624 shares in the last quarter. Empowered Funds LLC grew its stake in shares of Strattec Security by 3.3% in the first quarter. Empowered Funds LLC now owns 17,221 shares of the auto parts company's stock worth $680,000 after acquiring an additional 555 shares in the last quarter. Jane Street Group LLC grew its stake in shares of Strattec Security by 61.1% in the first quarter. Jane Street Group LLC now owns 15,869 shares of the auto parts company's stock worth $626,000 after acquiring an additional 6,019 shares in the last quarter. Finally, Geode Capital Management LLC increased its position in shares of Strattec Security by 110.2% during the second quarter. Geode Capital Management LLC now owns 90,389 shares of the auto parts company's stock worth $5,624,000 after acquiring an additional 47,389 shares during the period. 68.91% of the stock is owned by hedge funds and other institutional investors.

Strattec Security announced that its Board of Directors has initiated a stock repurchase plan on Thursday, May 28th that authorizes the company to repurchase $40.00 million in outstanding shares. This repurchase authorization authorizes the auto parts company to repurchase up to 12.8% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's management believes its shares are undervalued.

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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