Astronics (NASDAQ:ATRO) Shares Gap Down Following Analyst Downgrade

Key Points

• TD Cowen cut its Astronics price target from $90 to $80 but maintained a Buy rating. Shares opened at $56.60, down from the prior close of $62.
• Astronics beat third-quarter estimates, reporting EPS of $0.81 versus $0.72 expected and revenue of $271.7 million versus $268.0 million expected.
• Weaker fourth-quarter guidance may be weighing on shares: the revenue midpoint of $265 million is below analysts’ $273.9 million estimate, despite full-year revenue guidance of about $1.0 billion.

Shares of Astronics Corporation (NASDAQ:ATRO - Get Free Report) gapped down prior to trading on Wednesday after TD Cowen lowered their price target on the stock from $90.00 to $80.00. The stock had previously closed at $62.00, but opened at $56.60. TD Cowen currently has a buy rating on the stock. Astronics shares last traded at $60.3430, with a volume of 483,193 shares.

Several other equities research analysts have also recently issued reports on ATRO. Weiss Ratings cut shares of Astronics from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Thursday, October 8th. Wall Street Zen raised shares of Astronics from a "buy" rating to a "strong-buy" rating in a report on Sunday. KeyCorp began coverage on shares of Astronics in a research report on Thursday, October 22nd. They set a "sector weight" rating for the company. Finally, Zacks Research cut shares of Astronics from a "strong-buy" rating to a "hold" rating in a research note on Monday, September 7th. Two investment analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $84.58.

Recent Astronics Headlines

Investors following ATRO have been watching these headlines:

• Positive Sentiment: Third-quarter earnings and revenue beat analyst estimates. Sales were $271.7 million, while earnings per share were $0.81 versus the $0.72 consensus; revenue also rose year over year. Astronics Q3 earnings results
• Neutral Sentiment: Astronics’ updated FY 2026 revenue guidance is about $1.0 billion, in line with consensus. That offers a steady full-year outlook, but does not offset concern about the coming quarter.
• Negative Sentiment: Q4 revenue guidance of $255 million–$275 million has a midpoint of $265 million, below analysts’ $273.9 million estimate. This cautious near-term outlook appears to be overshadowing the quarterly beat and weighing on shares. Astronics shares slide on Q4 guidance

Institutional Investors Weigh In On Astronics

A number of hedge funds have recently made changes to their positions in the company. Fifth Third Bancorp boosted its stake in Astronics by 877.2% during the first quarter. Fifth Third Bancorp now owns 557 shares of the aerospace company's stock valued at $37,000 after buying an additional 500 shares during the last quarter. Optiver Holding B.V. grew its holdings in Astronics by 3,921.4% during the 1st quarter. Optiver Holding B.V. now owns 563 shares of the aerospace company's stock valued at $38,000 after buying an additional 549 shares in the last quarter. Nykredit A S purchased a new position in Astronics during the 2nd quarter valued at approximately $40,000. Allworth Financial LP purchased a new position in Astronics during the 2nd quarter valued at approximately $46,000. Finally, Blue Bell Private Wealth Management LLC bought a new stake in Astronics in the 3rd quarter worth approximately $48,000. 56.68% of the stock is currently owned by hedge funds and other institutional investors.

Astronics Trading Up 1.4%

The company has a current ratio of 2.97, a quick ratio of 1.63 and a debt-to-equity ratio of 1.57. The stock has a 50 day simple moving average of $65.39 and a 200-day simple moving average of $67.46. The firm has a market cap of $2.70 billion, a P/E ratio of 36.96 and a beta of 1.37.

Astronics (NASDAQ:ATRO - Get Free Report) last posted its earnings results on Tuesday, November 10th. The aerospace company reported $0.81 EPS for the quarter, beating analysts' consensus estimates of $0.72 by $0.09. The firm had revenue of $271.68 million during the quarter, compared to the consensus estimate of $267.97 million. Astronics had a return on equity of 67.69% and a net margin of 8.40%. The company's quarterly revenue was up 41.0% compared to the same quarter last year. During the same period in the prior year, the company earned $0.49 EPS. On average, equities research analysts expect that Astronics Corporation will post 2.72 EPS for the current fiscal year.

Astronics Company Profile

Astronics Corporation designs and manufactures technologies for the aerospace, defense and other industries. Its aerospace products include aircraft lighting, electrical power generation and distribution systems, cabin electronics, connectivity solutions and avionics-related equipment used on commercial and military aircraft. The company also develops test systems, including automated equipment used to test aerospace and defense electronics. Astronics serves aircraft manufacturers, airlines, defense organizations and other customers, with products and services reaching markets around the world.

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