CTS (NYSE:CTS) Shares Gap Up After Earnings Beat

Key Points

• CTS shares jumped after an earnings beat, opening at $59.96 versus a prior close of $53.92 and later trading at $56.19. Quarterly EPS was $0.77, topping the $0.65 consensus, while revenue of $149.58 million exceeded estimates of $145.95 million.
• The company paid a quarterly dividend of $0.04 per share, equivalent to $0.16 annually and a 0.3% yield.
• Analyst sentiment is generally positive, with a consensus “Moderate Buy” rating and an average price target of $73.50; institutional investors own 96.87% of CTS shares.

CTS Corporation (NYSE:CTS - Get Free Report) shares gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $53.92, but opened at $59.96. CTS shares last traded at $56.19, with a volume of 19,047 shares trading hands.

The electronics maker reported $0.77 earnings per share for the quarter, topping analysts' consensus estimates of $0.65 by $0.12. CTS had a return on equity of 13.48% and a net margin of 12.37%. The firm had revenue of $149.58 million for the quarter, compared to the consensus estimate of $145.95 million.

CTS Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, October 23rd. Shareholders of record on Friday, September 25th were issued a $0.04 dividend. The ex-dividend date was Friday, September 25th. This represents a $0.16 dividend on an annualized basis and a yield of 0.3%. CTS's dividend payout ratio is 6.72%.

Analyst Ratings Changes

CTS has been the topic of a number of recent research reports. Lake Street Capital began coverage on shares of CTS in a research report on Wednesday, September 2nd. They issued a "buy" rating and a $67.00 target price on the stock. Wall Street Zen upgraded shares of CTS from a "hold" rating to a "buy" rating in a research note on Sunday, September 27th. Barrington Research started coverage on shares of CTS in a research report on Thursday, September 10th. They set an "outperform" rating and a $80.00 price target for the company. Weiss Ratings raised shares of CTS from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, October 8th. Finally, Zacks Research cut shares of CTS from a "strong-buy" rating to a "hold" rating in a report on Monday, June 29th. Three analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $73.50.

Institutional Investors Weigh In On CTS

Hedge funds have recently added to or reduced their stakes in the stock. Nykredit A S purchased a new position in shares of CTS in the 2nd quarter worth about $25,000. Global Retirement Partners LLC purchased a new stake in CTS during the 2nd quarter valued at about $33,000. Public Employees Retirement System of Ohio purchased a new stake in CTS during the 2nd quarter valued at about $34,000. Sterling Capital Management LLC increased its stake in CTS by 272.1% during the 3rd quarter. Sterling Capital Management LLC now owns 841 shares of the electronics maker's stock valued at $49,000 after purchasing an additional 615 shares in the last quarter. Finally, GAMMA Investing LLC increased its stake in CTS by 29.6% during the 2nd quarter. GAMMA Investing LLC now owns 1,046 shares of the electronics maker's stock valued at $68,000 after purchasing an additional 239 shares in the last quarter. 96.87% of the stock is owned by institutional investors.

CTS Price Performance

The company has a quick ratio of 2.07, a current ratio of 2.61 and a debt-to-equity ratio of 0.10. The firm has a market capitalization of $1.62 billion, a PE ratio of 23.89, a PEG ratio of 1.25 and a beta of 0.99. The firm's fifty day simple moving average is $57.67 and its 200-day simple moving average is $56.92.

About CTS

CTS Corporation NYSE: CTS is a designer and manufacturer of sensors, actuators, and electronic components for original equipment manufacturers and industrial customers. The company develops custom-engineered solutions that help measure, control, and manage electrical and mechanical functions in a range of products and systems.

Its offerings include position, pressure, temperature, and motion sensors; piezoelectric and electronic components; switches, controls, and actuators; and other sensing and mechatronic products.

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