Strattec Security (NASDAQ:STRT) Cut to "Buy" at Wall Street Zen

Key Points

• Strattec Security has been downgraded from a "strong-buy" to a "buy" rating by Wall Street Zen and from "hold" to "strong sell" by Zacks Research, reflecting a shift in analyst sentiment.
• Despite the downgrades, Strattec Security reported strong earnings, with $2.06 EPS, surpassing expectations of $1.07 and achieving revenues of $152.01 million for the quarter.
• Hedge funds have shown increased interest in Strattec Security, with notable investments from Allspring Global Investments and Ritholtz Wealth Management, indicating a belief in the company's potential despite recent analyst ratings.

Strattec Security (NASDAQ:STRT - Get Free Report) was downgraded by Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research note issued on Sunday.

Separately, Zacks Research downgraded shares of Strattec Security from a "hold" rating to a "strong sell" rating in a research report on Tuesday, August 19th. One analyst has rated the stock with a Sell rating, According to MarketBeat, the company presently has a consensus rating of "Sell".

Strattec Security Stock Performance

Shares of NASDAQ:STRT traded down $0.39 on Friday, hitting $65.87. 76,687 shares of the company were exchanged, compared to its average volume of 143,793. Strattec Security has a 1-year low of $31.57 and a 1-year high of $83.00. The stock's 50 day moving average price is $65.94 and its 200 day moving average price is $52.33. The company has a current ratio of 2.43, a quick ratio of 1.72 and a debt-to-equity ratio of 0.03. The firm has a market capitalization of $274.02 million, a P/E ratio of 14.41, a price-to-earnings-growth ratio of 1.56 and a beta of 1.30.

Strattec Security (NASDAQ:STRT - Get Free Report) last posted its quarterly earnings data on Thursday, August 14th. The auto parts company reported $2.06 EPS for the quarter, topping the consensus estimate of $1.07 by $0.99. The business had revenue of $152.01 million during the quarter, compared to the consensus estimate of $143.51 million. Strattec Security had a net margin of 3.31% and a return on equity of 8.95%. Sell-side analysts predict that Strattec Security will post 3.67 EPS for the current year.

Institutional Trading of Strattec Security

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Captrust Financial Advisors purchased a new stake in shares of Strattec Security during the second quarter worth about $225,000. Lazard Asset Management LLC increased its stake in shares of Strattec Security by 414.3% during the second quarter. Lazard Asset Management LLC now owns 13,500 shares of the auto parts company's stock worth $839,000 after purchasing an additional 10,875 shares in the last quarter. BNP Paribas Financial Markets increased its stake in shares of Strattec Security by 420.9% during the second quarter. BNP Paribas Financial Markets now owns 2,464 shares of the auto parts company's stock worth $153,000 after purchasing an additional 1,991 shares in the last quarter. Bridgeway Capital Management LLC increased its stake in shares of Strattec Security by 3.9% during the second quarter. Bridgeway Capital Management LLC now owns 42,613 shares of the auto parts company's stock worth $2,651,000 after purchasing an additional 1,580 shares in the last quarter. Finally, Ameriprise Financial Inc. purchased a new stake in shares of Strattec Security during the second quarter worth about $1,806,000. Hedge funds and other institutional investors own 68.91% of the company's stock.

About Strattec Security

Strattec Security Corporation designs, develops, manufactures, and markets automotive access control products under the VAST Automotive Group brand primarily in North America. The company provides mechanical and electronically enhanced locks and keys, passive entry passive start systems, steering column and instrument panel ignition lock housings, latches, power sliding side door systems, power tailgate and lift gate systems, power deck lid systems, door handles, and related products.