Sensata Technologies (NYSE:ST) Reaches New 1-Year High - Time to Buy?

Key Points

• Sensata hit a new 52-week high of $39.44 and has drawn bullish analyst action (Oppenheimer raised its price target to $50 and Wall Street Zen to "strong-buy"), though the consensus rating remains a Hold with a $40.20 target.
• The company posted a modest quarterly beat (EPS $0.88 vs. $0.86; revenue $917.9M vs. $911.0M), with revenue up 1.1% year‑over‑year and analysts projecting about $3.21 EPS for the year.
• Sensata trades at a high valuation (PE ~206, PEG 1.10) and pays a 1.2% yield, but its dividend payout ratio is very elevated (~252.6%); insiders have been net sellers and institutional ownership is extremely high (~99.4%).

Sensata Technologies Holding N.V. (NYSE:ST - Get Free Report) shares reached a new 52-week high during trading on Friday . The stock traded as high as $39.44 and last traded at $38.9740, with a volume of 34413 shares trading hands. The stock had previously closed at $38.69.

Wall Street Analyst Weigh In

Several research firms have commented on ST. Oppenheimer lifted their price target on Sensata Technologies from $43.00 to $50.00 and gave the company an "outperform" rating in a report on Friday, February 27th. Wall Street Zen upgraded Sensata Technologies from a "buy" rating to a "strong-buy" rating in a report on Saturday, April 4th. Robert W. Baird upped their price objective on Sensata Technologies from $39.00 to $40.00 and gave the stock a "neutral" rating in a report on Friday, February 20th. Wells Fargo & Company upped their price objective on Sensata Technologies from $34.00 to $37.00 and gave the stock an "equal weight" rating in a report on Monday, January 12th. Finally, Weiss Ratings upgraded Sensata Technologies from a "sell (d+)" rating to a "hold (c-)" rating in a report on Monday, March 2nd. Four investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, Sensata Technologies has an average rating of "Hold" and a consensus target price of $40.20.

Sensata Technologies Trading Up 1.3%

The business's 50-day moving average is $35.61 and its two-hundred day moving average is $33.61. The company has a current ratio of 2.57, a quick ratio of 1.78 and a debt-to-equity ratio of 1.02. The stock has a market capitalization of $5.71 billion, a PE ratio of 206.14, a PEG ratio of 1.10 and a beta of 1.14.

Sensata Technologies (NYSE:ST - Get Free Report) last announced its quarterly earnings results on Saturday, February 14th. The scientific and technical instruments company reported $0.88 earnings per share for the quarter, topping analysts' consensus estimates of $0.86 by $0.02. Sensata Technologies had a net margin of 0.83% and a return on equity of 17.92%. The firm had revenue of $917.88 million during the quarter, compared to analysts' expectations of $911.03 million. During the same period in the prior year, the company earned $0.76 EPS. The firm's revenue was up 1.1% on a year-over-year basis. On average, analysts predict that Sensata Technologies Holding N.V. will post 3.21 earnings per share for the current year.

Sensata Technologies Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, February 25th. Investors of record on Wednesday, February 11th were given a dividend of $0.12 per share. This represents a $0.48 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date of this dividend was Wednesday, February 11th. Sensata Technologies's dividend payout ratio is 252.63%.

Insiders Place Their Bets

In related news, EVP Lynne J. Caljouw sold 2,913 shares of the company's stock in a transaction on Tuesday, April 7th. The shares were sold at an average price of $34.71, for a total transaction of $101,110.23. Following the completion of the sale, the executive vice president directly owned 72,842 shares of the company's stock, valued at approximately $2,528,345.82. This represents a 3.85% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Over the last three months, insiders have sold 7,889 shares of company stock worth $280,345. 0.89% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Sensata Technologies

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its position in Sensata Technologies by 2.4% in the 3rd quarter. Vanguard Group Inc. now owns 14,997,522 shares of the scientific and technical instruments company's stock valued at $458,174,000 after buying an additional 346,547 shares during the last quarter. Janus Henderson Group PLC boosted its position in Sensata Technologies by 2.3% in the 4th quarter. Janus Henderson Group PLC now owns 10,289,698 shares of the scientific and technical instruments company's stock valued at $342,544,000 after buying an additional 230,113 shares during the last quarter. Dimensional Fund Advisors LP boosted its position in Sensata Technologies by 3.5% in the 4th quarter. Dimensional Fund Advisors LP now owns 7,266,103 shares of the scientific and technical instruments company's stock valued at $241,884,000 after buying an additional 242,865 shares during the last quarter. Woodline Partners LP boosted its position in Sensata Technologies by 165.4% in the 3rd quarter. Woodline Partners LP now owns 4,975,745 shares of the scientific and technical instruments company's stock valued at $152,009,000 after buying an additional 3,100,927 shares during the last quarter. Finally, Barrow Hanley Mewhinney & Strauss LLC boosted its position in Sensata Technologies by 28.7% in the 4th quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 4,313,603 shares of the scientific and technical instruments company's stock valued at $143,600,000 after buying an additional 961,457 shares during the last quarter. 99.42% of the stock is owned by hedge funds and other institutional investors.

About Sensata Technologies

Sensata Technologies Holdings N.V. is a global industrial technology company specializing in the design, development and manufacture of sensors and electrical protection solutions. The company's product portfolio includes pressure, temperature, position, speed, current and magnetic sensors, as well as circuit breakers and other protection devices. Sensata's offerings serve a wide array of end markets, with a particularly strong presence in automotive original equipment manufacturers (OEMs), industrial automation, heating, ventilation and air conditioning (HVAC), commercial aerospace and renewable energy sectors.

Headquartered in Attleboro, Massachusetts, Sensata operates a network of manufacturing and engineering facilities across North America, Europe, Asia Pacific and Latin America.

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