Gabelli Funds LLC Boosts Position in Strattec Security Corporation $STRT

Key Points

• Gabelli Funds LLC increased its stake in Strattec Security by 41.7% in the first quarter, buying an additional 72,900 shares and bringing its total holding to 247,800 shares, or about 5.93% of the company.
• Strattec Security reported earnings below expectations for the quarter, with EPS of $0.90 versus the $1.14 estimate and revenue of $137.63 million versus the $140.35 million forecast.
• The company’s board authorized a $40 million share buyback, covering up to 12.8% of outstanding shares, while analysts currently have an average Buy rating on the stock.

Gabelli Funds LLC raised its holdings in shares of Strattec Security Corporation (NASDAQ:STRT - Free Report) by 41.7% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 247,800 shares of the auto parts company's stock after acquiring an additional 72,900 shares during the period. Gabelli Funds LLC owned approximately 5.93% of Strattec Security worth $19,413,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also bought and sold shares of the company. New York State Teachers Retirement System acquired a new stake in shares of Strattec Security in the fourth quarter worth $27,000. State of Alaska Department of Revenue acquired a new position in Strattec Security during the fourth quarter valued at $58,000. Bank of America Corp DE lifted its position in Strattec Security by 137.9% during the fourth quarter. Bank of America Corp DE now owns 2,208 shares of the auto parts company's stock valued at $91,000 after purchasing an additional 1,280 shares during the period. Raymond James Financial Inc. purchased a new stake in Strattec Security in the second quarter valued at $92,000. Finally, New York State Common Retirement Fund purchased a new stake in Strattec Security in the second quarter valued at $106,000. 68.91% of the stock is currently owned by institutional investors and hedge funds.

Strattec Security Stock Performance

STRT opened at $85.78 on Friday. The company has a fifty day moving average of $78.66 and a two-hundred day moving average of $79.43. The stock has a market capitalization of $358.56 million, a price-to-earnings ratio of 14.16, a PEG ratio of 1.77 and a beta of 1.18. Strattec Security Corporation has a fifty-two week low of $57.01 and a fifty-two week high of $92.50.

Strattec Security (NASDAQ:STRT - Get Free Report) last posted its earnings results on Thursday, May 7th. The auto parts company reported $0.90 EPS for the quarter, missing analysts' consensus estimates of $1.14 by ($0.24). The business had revenue of $137.63 million for the quarter, compared to analyst estimates of $140.35 million. Strattec Security had a net margin of 4.31% and a return on equity of 11.00%. On average, equities research analysts forecast that Strattec Security Corporation will post 6.12 earnings per share for the current year.

Strattec Security declared that its board has initiated a stock buyback plan on Thursday, May 28th that authorizes the company to buyback $40.00 million in outstanding shares. This buyback authorization authorizes the auto parts company to purchase up to 12.8% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's leadership believes its stock is undervalued.

Analysts Set New Price Targets

Several brokerages have weighed in on STRT. Freedom Capital raised 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 report on Friday, July 10th. Wall Street Zen downgraded Strattec Security from a "buy" rating to a "hold" rating in a research note on Sunday, May 17th. Finally, Weiss Ratings reiterated a "buy (b)" rating on shares of Strattec Security in a research report on Wednesday, June 24th. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat, Strattec Security presently has an average rating of "Buy".

Insider Activity

In other Strattec Security news, Director Frederic Jack Liebau, Jr. bought 1,000 shares of the firm's stock in a transaction dated Tuesday, May 12th. The shares were purchased at an average price of $61.37 per share, for a total transaction of $61,370.00. Following the transaction, the director directly owned 7,748 shares of the company's stock, valued at approximately $475,494.76. This represents a 14.82% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Jennifer Lynn Slater purchased 801 shares of the company's stock in a transaction that occurred on Wednesday, May 13th. The stock was bought at an average cost of $62.46 per share, for a total transaction of $50,030.46. Following the purchase, the chief executive officer directly owned 57,924 shares in the company, valued at $3,617,933.04. This trade represents a 1.40% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders acquired 4,598 shares of company stock worth $286,440 over the last three months. 3.90% of the stock is currently owned by corporate insiders.

Strattec Security 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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