Sensata Technologies (NYSE:ST) Shares Gap Down - Here's Why

Key Points

• Sensata shares fell 3.7%, opening at $41.14 after closing at $42.32, as investors reacted to weak fourth-quarter revenue guidance.
• The company’s third-quarter results exceeded expectations: adjusted earnings were $1.13 per share versus the $0.96 consensus, while revenue increased 7.7% year over year to about $1 billion.
• Analyst sentiment remains mixed but generally favorable, with a consensus rating of “Hold” and an average price target of $48.80; the company also declared a quarterly dividend of $0.12 per share.

Sensata Technologies Holding N.V. (NYSE:ST - Get Free Report)'s share price gapped down before the market opened on Wednesday. The stock had previously closed at $42.32, but opened at $41.14. Sensata Technologies shares last traded at $41.26, with a volume of 185,080 shares traded.

Key Sensata Technologies News

Here are the key news stories impacting Sensata Technologies this week:

• Positive Sentiment: Sensata reported third-quarter earnings of $1.13 per share, well above the $0.96 analyst consensus and up from $0.89 a year earlier. Revenue rose 7.7% year over year to approximately $1.0 billion, also exceeding expectations. Sensata Beats Q3 Earnings and Revenue Estimates
• Positive Sentiment: Truist Securities maintained its Buy rating, although it trimmed its price target modestly to $57 from $58. The revised target still implies meaningful upside from recent trading levels. Truist Adjusts Sensata Price Target
• Positive Sentiment: Zacks highlighted Sensata as a strongly rated value stock, which may attract investors seeking relatively favorable valuation characteristics. Why Sensata Is a Strong Value Stock
• Neutral Sentiment: The stock recently moved above its 200-day moving average, a technical development that could support longer-term sentiment, though it does not change the near-term earnings outlook. Sensata Stock Crosses Above 200-Day Moving Average
• Negative Sentiment: Management’s fourth-quarter revenue guidance was viewed as weak, prompting the market reaction. The outlook suggests slower near-term growth and outweighed the third-quarter beat, while investors await additional details from the earnings call. Sensata Falls on Weak Fourth-Quarter Revenue Guidance

Analysts Set New Price Targets

A number of equities analysts have recently commented on the stock. UBS Group dropped their price target on shares of Sensata Technologies from $57.00 to $54.00 and set a "buy" rating on the stock in a research report on Wednesday, October 7th. Oppenheimer upped their price objective on shares of Sensata Technologies from $55.00 to $58.00 and gave the stock an "outperform" rating in a report on Friday, July 31st. Bank of America raised their target price on shares of Sensata Technologies from $46.00 to $48.00 and gave the company a "neutral" rating in a research note on Thursday, July 9th. Wall Street Zen downgraded shares of Sensata Technologies from a "strong-buy" rating to a "buy" rating in a report on Sunday, September 20th. Finally, Weiss Ratings lowered shares of Sensata Technologies from a "hold (c)" rating to a "hold (c-)" rating in a research report on Thursday, July 30th. Four research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Sensata Technologies currently has an average rating of "Hold" and a consensus target price of $48.80.

Sensata Technologies Trading Down 3.7%

The stock has a fifty day simple moving average of $42.00 and a 200-day simple moving average of $41.77. The stock has a market cap of $5.93 billion, a price-to-earnings ratio of 67.93 and a beta of 1.25.

Sensata Technologies (NYSE:ST - Get Free Report) last issued its quarterly earnings results on Tuesday, October 27th. The scientific and technical instruments company reported $1.13 EPS for the quarter, topping analysts' consensus estimates of $0.96 by $0.17. The business had revenue of $1 billion for the quarter, compared to analyst estimates of $972.97 million. The firm's quarterly revenue was up 7.7% compared to the same quarter last year. During the same quarter last year, the firm earned $0.89 earnings per share. Sell-side analysts forecast that Sensata Technologies Holding N.V. will post 3.77 earnings per share for the current fiscal year.

Sensata Technologies Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 25th. Shareholders of record on Wednesday, November 11th will be given a $0.12 dividend. The ex-dividend date is Tuesday, November 10th. This represents a $0.48 dividend on an annualized basis and a dividend yield of 1.2%. Sensata Technologies's dividend payout ratio (DPR) is currently 80.00%.

Institutional Trading of Sensata Technologies

Several institutional investors have recently made changes to their positions in ST. Root Financial Partners LLC boosted its stake in shares of Sensata Technologies by 62.5% in the 1st quarter. Root Financial Partners LLC now owns 913 shares of the scientific and technical instruments company's stock valued at $32,000 after purchasing an additional 351 shares in the last quarter. Elevation Wealth Partners LLC lifted its holdings in Sensata Technologies by 272.3% during the 2nd quarter. Elevation Wealth Partners LLC now owns 901 shares of the scientific and technical instruments company's stock valued at $43,000 after purchasing an additional 659 shares during the last quarter. Parallel Advisors LLC lifted its holdings in Sensata Technologies by 90.5% during the 1st quarter. Parallel Advisors LLC now owns 2,042 shares of the scientific and technical instruments company's stock valued at $72,000 after purchasing an additional 970 shares during the last quarter. EverSource Wealth Advisors LLC boosted its position in Sensata Technologies by 48.2% in the first quarter. EverSource Wealth Advisors LLC now owns 2,187 shares of the scientific and technical instruments company's stock valued at $77,000 after buying an additional 711 shares in the last quarter. Finally, Signaturefd LLC boosted its position in Sensata Technologies by 124.1% in the third quarter. Signaturefd LLC now owns 2,302 shares of the scientific and technical instruments company's stock valued at $96,000 after buying an additional 1,275 shares in the last quarter. 99.42% of the stock is currently owned by institutional investors and hedge funds.

Sensata Technologies Company Profile

Sensata Technologies Holding plc NYSE: ST is a global developer and manufacturer of sensing, control and protection solutions. The company supplies components that help monitor conditions, improve safety and efficiency, and support automated decision-making in vehicles, industrial equipment and other systems.

Its products include pressure, temperature, position, speed, force, current and fluid-level sensors, along with circuit breakers, controls and other protection devices. Sensata's technologies are used in applications such as automotive systems, heavy-duty vehicles, industrial machinery, heating and air-conditioning equipment, aerospace and defense, energy infrastructure, and data centers.

Sensata serves original equipment manufacturers and other industrial customers across North America, Europe, Asia and additional international markets.

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